We are seeing the cascading impacts of the energy-driven inflation starting to ripple throughout the globe, specifically worsening economies who are dependent on the export of non-essential durable goods. South Korea manufacturing is the latest example.
The first quarter of 2022 started with a drop in U.S. consumer spending on non-essential durable goods like electronics. The net result of contracted consumer spending was a 1.6% negative GDP.
Inventories of goods started to build and by April/May of 2022 the Consumer Price Index (CPI) showed negative inflation in those sectors as discounts to move inventory were offered.
In June major manufacturer Samsung, headquartered in South Korea, announced they had told suppliers to stop sending component manufacturing parts for finished goods. (link)
By the end of July, the second quarter GDP in the U.S. again showed a contraction of 0.9%. Energy inflation was now creating a consumer spending recession, demand for non-essential goods dropped fast over the first half of the year.
Today, South Korea announces July manufacturing output contracted for the first time in two years, matching the prior announcement by Samsung:
SEOUL, Aug 1 (Reuters) – South Korea’s factory activity shrank in July for the first time in nearly two years, as output and new orders weakened amid continued inflation and supply chain woes, a private-sector survey showed on Monday.
The S&P Global purchasing managers’ index (PMI) fell to a seasonally-adjusted 49.8 in July from 51.3 in June, falling below 50 for the first time since September 2020. The 50-mark separates expansion from contraction in factory activity from a previous month.
Output fell for a fourth straight month and by the sharpest rate since October 2021, as new orders decreased for the first time in 22 months and those from overseas for the fifth month in a row. (read more)
All economies that are dependent on the manufacturing and export of durable goods are likely now seeing reduced factory outputs as fewer customers exist to purchase the final product. This will lead to a predictable rise in unemployment amid those same nations.
This situation is the reason why the Bank of Japan did not raise their central bank interest rates. They are attempting to offset the drop in global economic activity by keeping their currency value low as compared to the rest of the western countries. This will help move their exported goods at a discount.
Inside countries with large imports, the definition of “non-essential” purchases within each household now starts to shift. Upgrading electronics, jewelry purchasing, and other non-essential goods become the first to feel the impact. That contraction is then followed by appliances, furniture, clothing and eventually vehicles and high-cost durable goods.
As less and less disposable income is available, consumer spending gets increasingly prioritized. The service sector is likely starting to feel the consumer belt tightening, particularly those consumer goods and services that are dependent on middle class families.
Inflation in general is a corrosive issue that eats away at the ability of consumers to purchase products and services. Energy inflation is particularly damaging as it hits every sector of the economy with higher supply-side costs. Food prices, fuel, transportation costs, electricity rates etc. take a larger portion of the paycheck, leaving less room (if any) for non-essential purchases.
A shrinking global economy is the outcome of an intentionally managed decline to support the Build Back Better, climate change, agenda.
What a tool…all of them…
Remember when Pres. Trump said, “Winning, winning, we’ll have so much winning, you’ll be tired of winning.”
Even the Cubs were winning….
So, who’s holding the camera…G. Soros or B. Gates?
One of my FAVORITE SONGS forever!!!!!
TARFU.
Totally!
How do you say FJB in Korean?
FJB,…at this point, its the same in any language, and soon, Brandon will be able to say “WOW, Everyone in the WORLD wants to have sex with me, they’re ALL shouting about it!”
Sorry, I do not believe the 2nd quarter contraction was only 0.9%. Government agencies lie to protect their leftist ideology. The murderers at the WEF will only be happy when 75% of the world population are dead and they control the other 25%.
they slowed down the left coast ports to reduce imports and exported all that SPR oil for a profit on the books
Agreed.
This fudging of the economic data to mask the downturn is similar to the fake polls we are now seeing, meant to prime us for another set of ‘elections’ whereby the gap tightens just before election day in favor of the progressive candidate who then ‘wins’ by one percent or less after election day.
Come on, man; Trump and similar candidates were up by as much as 10% when we went to bed on election night in 2020.
The gap must now be at least 60% in favor of throwing the bums out but we are suddenly seeing polls that show Trump and other true conservatives up by only 5 or 6%.
Very succinctly explained. Congratulations
Just as a caution: those who are truly slaves to an ideology almost necessarily are a second tier in a movement like this. On top of them are those who really are interested only in Supreme power.
The power hungry can be much more flexible in tactics.
These economic ripples starting to show in most nations, pretty much in one way or another, can all be traced to the stolen 2020 election in the US. No stolen election, no war on US energy production. Everything starts and spreads out from there. The Green New Scam would have had zero traction if PDT was rightfully in the WH.
Amen…”Stolen elections have catastrophic consequences.” Steve Bannon
As I see it the problem lies in grazing. Yes, the sheep are grazing. The fix for 1984 is 1776.
Yep – and that’s what I have been saying to people here in Australia
Not to mention there would be no war in Ukraine if Trump had had his second term.
I’m certain you are correct. Putin had to respect Trump, and Trump would not have fallen for getting directly involved, unless necessary, but would have given you Crane or any other halfway decent country that needed it what they actually did need to defend themselves. That would probably have been cheaper than Biden’s policy of giving them lots of marginally useful things. Remember that Poland wanted to give Ukraine fighter planes they needed to contest air superiority. Being able to do that would have canceled most other Russian advantages.
How right you are and your comment should shake up the muddled minds of
those who say, “yeah, but just move along and worry about the next “selection”.
Did South Korea bite the poisonous ESG apple?
The South Korean Government and Industry have NO Choice.
The Top 10 International Investing Firms, who control the capitalization of GDP driving assets, have embraced ESG as part of their bargain with the World Governments doing their bidding. Think of it a closed loop insider trading plan … governments telegraph their plans to the Board of Directors (The Investing Firms) and Board Approves by investing accordingly.
This is not limited to Team G7, as Team BRICS is doing the very same thing.
The WEF is the common academic reference for both as each Team draws its own conclusions and develops its own uses for WEF activities.
The UN is the Political Body of Global Government while the BIS (including WTO, IMF and WFM) is the banking arm.
The BBB plan is only going to be better for the Globalists.
One only has to listen to:
Klaus Schwab and his mentors about the world needing depopulation.
Bill Gates about achieving depopulation through vaccination.
Yuval Noah Harari of the WEF about how ‘useless eaters’ will just take up resources as Artificial Intelligence and Robots take over work in the world.
Jane Goodall about how the earth’s population should only be 500 million. (They even set this number in stone…the Georgia Guidestones…and only recently blew them up to hide the evidence of “The Plan”.)
Their plan for the majority of us is hastened death.
They want Earth for themselves.
They want 500 Million slaves chipped with Technology for controllability.
The rest of the work will be done by AI and Robots.
This Build Back Better Climate Change Agenda is all about depopulation…one way or another.
I dont understand the end game. It would seem to me that a robust population would
lead to more innovation, a better world for everyone regarding food, housing, health
and the resulting better life which would mean more expenditures making the companies
MORE money.
Instead, they want to reduce the population drastically so they have reduced sales and profits?
What am I missing? How are the huge corporations who are supporting this woke build back better
nonsense going to make more profit?
They have all the $$$ they need – they literally print it for themselves – they want Feudalism – and they are Satanists at the top – they believe they will live very well without anymore “innovation” and 500 Million Slaves — the rest have been Vxd to death or will be taken out by Famine, War….
Printing all the currency in the world does not necessarily equate wealth though.
Trading something of intrinsic value for inflated fiat currency now, is a good deal for the ones getting the freshly printed currency with no laborious efforts on their part.
I am not sure about the Satanist part, but I do not exclude it. There is certainly a nihilist element among the top people, and also in the second tier. Such people despise Humanity on an emotional, or mental illness basis.
Love all these comments! How long will the lead time be for their new yacht when
there is no one to build it?
The endgame is The Earth…for themselves.
They will keep 500 million human/chipped for control slaves.
AI and Robots will do the rest of the work.
The real problem will be controlling AI.
Waiting to hear ….
”Sorry Klaus, I’m afraid I can’t do that.”
Perfect.
In time, perhaps. But for a long time the problem will be who programmed them. AIS are not actually intelligent they can merely do complex calculations quickly.
Probably academic, but we are at the end of the Kali Yuga (2025) which is the 2700 year Hindu period of distruction/transformation before the period of rebirth.
Yea ok it’s academic.
This is good that you are realizing that this does not make any sense, and you are starting to question things. Keep asking questions. We need to question everything they tell us.
They have what they need. Gadgets that interest you are meaningless to them. The one thing they crave is power over others, for their labor and for flesh. They dont need iPhone version 72 to do that.
Power over humanity is their driving desire.
If they succeed with their plan, I wonder how long it will take them to get bored with the results.
You are right about the economics, ultimately. In a capitalist economy, or one that is even somewhat capitalist, every person who works is making the world richer. Fooled by socialist ideologies contaminated by basically religious environmentalism, even some intelligent people can think otherwise. But those at the very top of this movement cannot be that stupid. They don’t care what the second tier thinks until the last moments they can influence events. Both are working towards a world where great power will be concentrated in very few hands. That is when the second tier will find out they are not needed at all.
Transportation fuel is what most people notice, and high gas prices reduce peoples available income for other products and it causes inflation in almost every product that must be transported.
Few people realize the huge amount of products manufactured from petroleum. Think of all the goods you buy packaged in plastic containers and know the additional cost of the packaging is being passed on to you. Think how much plastic is used in an automobile and ask yourself how does this get replaced if we stop producing petroleum?
This is a list of petroleum products and their share of total US petroleum consumption in 2013.
I’ve been doing a remodel project at my home, and the last few weeks the foot traffic in the big box home improvement store has fallen way off. The other day there were more store employees than customers. There go the local and state sales taxes for the fat, dumb, and happy government workers.
They’ll just raise the taxes to make up for government “losses”.
Thank you Sundance. It just hit me (yes, I know, I’m a bit slow) that “they” are taking down the global economy, not just ours. We outsourced just about everything, so as we go down, so do all the countries that rely on our consumerism. This is tragic and completely unnecessary and wrong.
Let’s Go Brandon!!
I would like to know how much Pelosi and Biden are gaining from this drop in the worlds GDP?
Wouldn’t that be a big surprise?
6 feet of soil above them, if they’re lucky. Those who control revolutions generally rid themselves of the powerful who help them in order to eliminate potential rivals.
So BRICS can’t really defend itself against the coming ‘Green’ collapse of the West?
All that is built to leverage or grow in support Western consumption will collapse with the collapse of the Western consumption.
The market for the energy used by the West will disappear. Too bad for Putin, the Saudi’s etc.
All that manufacture things to sell to Europe and America will turn to a new Rust Belt. Too bad for Xi.
Was the entire point of making everything Global so that the entire Globe will collapse when they ‘Save the Planet’? Looks more like planetary destruction to me.
One of the ‘features’ of this globalism has been the steady flight of manufacturing from any economy that starts to pay their workers enough so that they start consuming. There are always some impoverished people somewhere else that they can take advantage of. If they can’t impose slavery, then they will go find corrupt leaders that will accept their bribes.
This is the flip side of the curse of consuming without manufacturing. Somebody is manufacturing without consuming.
True, places like Japan and South Korea have significantly grown their own consumption and won’t fall as far as China will. But they will still fall.
Welcome to the upcoming World Wide Great Depression. Joe laughs at you calling this current misery a recession. It is truly a transition to something much, much worse. This will put the misery of the 1930s to shame.
We are on the Titanic, at the part where the back end has flipped up out of the water – that’s us, clinging onto the rail waiting for the rest of ‘it’ to sink.
I had a nice conversation with my son that is the elite-educated communist yesterday. I pointed out the incongruities of idiot Pete pushing electric vehicles because, if you bought one of those then you wouldn’t be paying $6 a gallon for gasoline and, having to turn off the air conditioning because the solar and wind electric grid is collapsing. And, btw, electrons aren’t free – something caused them to be charging the electric cars battery and it was probably the coal or natural gas fired power plant. I think we had a break through moment just then.
Sadly, I made no progress on the clot shot front, though he may now realize what a mistake it was and just can’t bring himself to talk about it. I now only mention the ‘died suddenly’ articles I find in my news – like the 7 doctors (which, don’t grow on trees) dead having been forced into the 4th booster. Very sad. Still waiting on that reckoning.
So what is the solution? Perhaps the little people need to flex their economic and political muscles through a general strike- truckers, tradespeople, miners, factory workers- to get rid of their respective failed, dangerous governments.
Solutions vary by goal. Examine citizen solution and participation in various historical events of similar nature for guidance. Every circumstance is unique but lessons can be gleaned from the past to apply in the present.
I think Sundance has clearly outlined the causal human and systemic factors. PDJT, during his term, also did a great job of outlining the challenges. The rest is up to us.
If people are contracting their lifestyles, they’ve either run low on reserves or are choosing to preserve them at the expense of everyday life. Ironically, if the latter, that preservation leaves more bombs and bullets in the hands of the enemy since it is the enemy who holds those reserves.
In past adversarial actions I’ve chosen to survive and looked at the micro picture. This time, no. It’s time to fight and look at the big picture. Others will make their own choices. I wish them wisdom and faith in making them.
Where is 007 when you need him? This James Bond movie is getting out of control.
The South Korean Government and Industry have NO Choice but embrace the destructive forces of ESG … or join BRICS.
The Top 10 International Investing Firms, who control the capitalization of GDP driving assets, have embraced ESG as part of their bargain with the World Governments doing their bidding. Think of it a closed loop insider trading plan … governments telegraph their plans to the Board of Directors (The Investing Firms) and Board Approves by investing accordingly.
This is not limited to Team G7, as Team BRICS is doing the very same thing.
The WEF is the common academic reference for both as each Team draws its own conclusions and develops its own uses for WEF activities.
The UN is the Political Body of Global Government while the BIS (Bank for International Settlements including; WTO, IMF and WFM) is the banking arm.
Yep, everything we are seeing is being driven by the leaders and graduates of WEF.
These same people are Biden’s puppeteers dictating policy here is the US.
it’s a shame that so many so called conservatives sold out their country.
I hope going forward their names and faces of the top 50 WEF folks begin to show up everywhere so as the pain across the globe worsens, the 8 billion people will know who caused as this.
In fact we need two list……..
1) Top 50 WEF Socialists
2) Top 50 Republican sellouts.
52, for the cards
Plozi is on the way she can tell them all how go they have it.
Would it not be interesting if Japan dusted off their historical records to formulate a “kinder gentler” form of the Asian Co-Prosperity Sphere they wanted to form during the WWII era. The “kinder gentler” being how the proposed economic sphere operates.
Besides economics. A common denominator not often discussed is that Asians have a racist streak v/v NON-Asians.
A 3rd Major Economic block is possible.
“While admitting that consumer spending had dropped; and while admitting that production of goods and services had “slowed significantly”; and while admitting that consumers have “lower real disposable incomes and tighter financial conditions; and while stating that “activity in the housing sector had weakened”, housing purchases have fallen; and while accepting that “business fixed investment seems to have declined in the second quarter,” Fed Chairman Powell announces his intention to continue targeting excessive demand.” – Sundance. Bold is my add.
If there is “excessive demand” then logically wouldn’t South Korea increase its manufacturing to meet demand rather than announce that “July manufacturing output contracted for the first time in two years, matching the prior announcement by Samsung:”?? Do these leftist economic sycophants, gurus and experts really believe they can fool us that they are the “great and powerful wizard of Oz” about the domestic and worldwide economy??? C’mon man!!!
‘never seen this lack of productivity in history’
Yeah, well, like, no famine in South Korea like in other countries. So, we all good.
I think we are about to have a discussion about the “2% Inflation Target”. Is this 2% target relevant? Is the 2% target the same as “using a mask”?
https://mises.org/power-market/origins-2-percent-inflation-target
https://www.economics.utoronto.ca/gindart/2014-12-21%20-%20Of%20Kiwis%20and%20currencies.pdf
https://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf
I read and research daily and am faced with the same ole lies and more lies. Take nothing at face value. These inbred idiots are NOT happy and successful; they have taken on a fool’s errand of pursuing an impossible dream; delusion if you will.
A while ago, I talked with a young businessman who purchased an electric vehicle, for his business. He was smilingly telling me all the advantages of owning this electric vehicle. How simple it was to contact the local electric and gas company to request the installation of a charging station, etc., etc. However, he further explained he and his wife kept their family-sized utility vehicle for personal use, driving the kids around, and long trips, etc.
So, since I’m a really dummy (according to my electrical and mechanical engineer husband, LOL)I asked the young fella:
How do you get the electricity? You know, how is this electricity generated? How is it created?
He looked at me, shrugged his shoulder and pointed to the installed electric charging station and said he just plugs it in.
That’s your answer folks.
It just seems to me that these WEFFERS or whatever/whoever they are really Do Not Know or Understand how ANYTHING REALLY WORKS!!!!! And they don’t care because they have NEVER, EVER studied any basic subjects in math, science, history, language, civics, or living a life requiring a real thought process and physically performing a task in order to survive.
They are sooooo smug, so full of themselves, so self-righteous and proud of the fact that they, (at this point in time), actually believe the fantasy they have created through their imagination. They are NOT living in reality. They are still playing the pretend games learned as children.
These arrogant, treasonous, destructive idiots will indeed Fail.
There are more of us than there are of them.
Biblically speaking, this has to happen,,,,,,all of the book of the Revelation of Jesus Christ, along with the Olivet Discourse, and Ezekiel 37-39 points to this,,,,we have to go through this, but Jesus knows who is His, He is keeping His in the palm of His Hand, and we will be ok, even if physically we aren’t ok, He is right there with us, He said He would never leave us or forsake us, He would be with us even to the end of the age, and He would hold us up with His Mighty Right Arm,,,,I will rest in the promises of Jesus over government