All around this western world of ours we find ourselves surrounded by economic pretenders and financial pundits, perhaps intentionally stuck, using old school economic theory to analyze a new era in government manipulation of the economy. It’s maddening… but at least we do not need to pretend on these pages.
Milton Friedman was not wrong at the time he stated that inflation is driven by monetary policy. Print money and the value of it diminishes; this is true.
However, we are in an era that Friedman never foresaw, nor could he fathom, where the structural policy of government is created to intentionally shrink economic activity.
Purposefully reducing energy resources and then purposefully reducing economic activity to match the diminished level of energy available, is the underlying purpose of what the western globalists call “Building Back Better.” The claim of “climate change” is the justification for their action. Too few people truly understand this, and as a result we see false arguments about the root of inflation being presented.
The ROOT CAUSE of modern western inflation is the intentional shortage of traditional energy resources (coal, oil, gas), which is driving up the price of the everything attached to the use of energy, everything. It is a supply side causation with policymakers trying to forcibly shrink energy demand. Quit making excuses in any other direction.
As energy products skyrocket, everything attached to the energy product rises in price – that is a supply side issue. Yes, if you wish to be obtuse and support the justification from the policymakers, you can -if you chose to join the pretending- argue that demand for energy is the cause. However, demand for energy is far more consistent than the reductions in the supply that have been created.
If it took a bucket of coal to power your house for a month, and I was driving around your neighborhood with a limit of six buckets of coal, each bucket would be worth more than last month because each neighbor would become increasingly desperate for the energy resource.
Neighbors would outbid each other in order to secure their bucket of coal. The price of the bucket increases with fewer and fewer buckets available. This is supply side inflation. No new houses are built, the demand is the same. It is the lesser availability of the coal buckets that is driving the price.
Policymakers want you to lower your energy use, ie lower your standard of living, to match the decreased availability of the energy resource (microeconomics).
In the macro view the monetary policy makers are doing the same thing to the aggregate economy by raising interest rates to shrink it (shrinking demand). This is being done on purpose. This is the agenda of Build Back Better. Quit making excuses for it or buying into their false justifications.
Milton Friedman was correct in his era, about expanded monetary policy making money worth less. However, Friedman never foresaw a time when government policy would be intentionally designed to reduce key supplies.
Government is regulating and restricting energy development, driving the price for each unit of energy developed higher, and as a deliberate outcome inflicting economic pain. Friedman never saw this in his lifetime. Friedman never saw true supply side inflation on this scale.
The private sector (energy providers) is restricted by policy makers. This is purposeful. Remove the regulatory and policy stranglehold restricting supply, and the downstream prices will drop. Unfortunately, and collectively, western leaders do not want prices to drop…. which would increase demand and expand economic activity. So, they continue to intentionally shrink the western economies.
As people are paying more for basic life sustaining energy products, they stop purchasing anything else.
Housing, shelter, energy, food and fuel are the priority. For most wage earners that’s all they can afford. The result is lower western nation economic activity on non-essential goods and services, which is the plan.
Consider this [Import Data]:
September is traditionally the month when all holiday goods arrive. The Port of Los Angeles (POLA) is the largest port in the United States. The slowdown of goods being imported [DATA HERE] is a majority outcome of a drop in demand for those goods. The Port of Long Beach [Data Here] is the same.
And the issue is not just West Coast ports. All ports are seeing a massive drop in imports:
[American Shipper] – […] September’s 313,311-TEU decline versus August was the steepest month-to-month drop recorded by Descartes since the 364,454-TEU plunge in February 2020 versus the month before, back when Chinese authorities first locked down Wuhan.
“We’ve had a pretty significant correction here,” said Chris Jones, executive vice president of industry and services at Descartes Systems Group, in an interview with American Shipper on Monday.
This is normally the time of year when imports seasonally decline — but not by this much. “There was an inflection, and it was a big one,” he said. “In some respects, this is not inconsistent with other years [pre-COVID]. It’s just more severe.” (read more)
With demand for non-essential goods and services collapsing, and with the economy continuing to shrink, why would the central banks keep raising interest rates?
Quit being a codependent enabler. Accept the reality…
The central banks, including the U.S. federal reserve, are trying to shrink the economy.
Energy policy is driving supply side inflation. Monetary policymakers are trying to support the energy policy by lowering economic activity to the level of decreased energy development.
The central banks are justifying rate increases saying they are trying to lower inflation by lowering demand. This part is true. However, the demand they are trying to lower, is the demand for energy.
The politicians and banks are trying to make people poorer.
Poor people are easier to manage.
This is ultimately what they mean by “managing the transition.”
You are what is being managed.
Every other claim is bullsh!t.
Losing contact with people I once talked to because I haven’t watched television in almost twenty five years has been a very liberating experience.
2005 here. CUT THE CORD!!
There are those who believe the man made climate change story, however those who are making a living pedaling this snake oil don’t believe a word of it. Obama has a 12 million dollar mansion ON the ocean and he just put in several large LPG tanks. “An Existential Threat” is rubbish, pure and simple. Who benefits? Those in government who want to control the population.
Poor people are easier to control — the implications are clear as day on that one. It is the simplest explanation that fits the facts.
What are LPG tanks?
Liquified Propane Gas
I have been ecstatic over my pending $140 social security COLA next month. This is how these thieves get you. Tax away any extra you dare make over $X and keep you grateful for your minimal monthly allotment.
I get it Greg.
I’m 63. Relatively healthy and active. Self employed.
Just launched another small biz in an effort to bury our reasonable real estate debt and offset this purposeful financial decline.
I’m not the sharpest tool in the woodshed so I just work and pray. Work and pray.
I’m trying to push taking social security as far into the future I can since they cap what we can earn.
Hang tough fellow Treeper. We ain’t the only ones in this 6uild 6ack 6etter world.
Just prayed for you. ✝️
Antithetically, I closed my business of nearly 40 years in industry to protest this abomination and attack on our fundamental rights and freedoms and will no longer participate in or contribute to a machine that seeks to destroy and enslave free men.
There is no amount of money that can change my mind. Money, and those who worship it, are evil. They will side with the regime against patriots in this battle. I expect it and have planned for it. I’ll use my father’s battle rosary similar to how he used it in Italy fighting under General Clark. The evil in this country has got to go. One way or another.
Those who do participate, willingly or not, continue to provide the enemy with the bombs, bullets and bioweapons to kill us with, and enslave us. It’s real. It’s happening. Right now.
I get people wanting to survive. Just don’t suck the cock of the enemy resulting in the deaths of patriots while doing it. Thanks.
Hmmm. We’ll then.
Perhaps you can fully liquidate, send your hard earned money to Greg above, then you can move to my place. You can guard the chicken coop.
Thanks. 🙏
Talk to an insurance agent. If you forestall collecting your SS check for like one year, you can collect your check and make unlimited daily money.
It’s all bullshit. A total farce blanketed in idiotic “science” that doesn’t exist. There is no climate change, period. You have to be a total moron to in anyway buy the lies re the cost of energy when the US sits on the largest oil reserve anywhere on the planet. In 2 years these WEF globalist pieces of human garbage have destroyed a nation that was one of the strongest in human history. They did it by choking energy production. I really hope I live long enough to see every one of these evil pieces of crap hunted down by angry mobs and kept alive long enough so their slow painful end can be broadcast world wide
” There is no climate change, period.”
Meaning, of course, no ‘global warming’ caused by burning fossil fuels.
All we have to do is to convince the citizens of this great country that it’s a delusion, a hoax perpetrated by self-serving collectivists, and we’ll be rid of them.
There are still too many who think we have to kowtow to the phony scientists “to save the Earth.” How many, even on forums like this, hear this BS every day and say nothing?
Speak up, tell your kids to speak up, tell your friends and neighbors to speak up, and above all tell your representatives to speak up. That’s what it will take.
You have to show them the money trail otherwise they will never get it. Even then some are beyond hope and can never be reached.
MOST of these ‘scientist’s’ are nothing but liberal arts losers,CLAIMING to be scientists! They and all the rest of the ‘climate warmist’s’ are nothing but charlatans and they have a load of manure they want to sell you. Wise up and IGNORE them! The planet is no warmer than it was when I was a boy, which was a long time ago. Don’t buy their BS!
That works for me!
There is no anthropogenic climate change, period.
That means caused by humans.
And it’s a great word to learn and throw at an ignorant leftist.
(I’ve recently had to re-learn it. I once misquoted it here as “anthropomorphic.” This means assigning human characteristics to things that are not human. Leftists do this a lot too. You know, with Nancy Pelousy, for example.)
Q Why is everything getting more expensive!! 🤬
A Let me give you an analogy…
If it took a bucket of coal to power your house for a month, …
This is supply side inflation.
No new houses are built, the demand is the same. It is the lesser availability of the coal buckets that is driving the price.
🤔
Policymakers want you to lower your energy use, ie lower your standard of living, to match the decreased availability of the energy resource that the Policymakers themselves have severely
decreased by shutting down our energy sector.
🤔
Government is regulating and restricting energy development, driving the price for each unit of energy developed higher, and as a deliberate outcome inflicting economic pain ON YOU!!
🤔🤔
The central banks, including the U.S. federal reserve, are trying to shrink the economy.
🥴
Energy policy is driving supply side inflation.
Monetary policymakers are trying to support the energy policy of the government by lowering economic activity to the level of the decreased energy development the Government Policymakers have caused.
🧐
The central banks are justifying interest rate increases saying they are trying to lower inflation by lowering demand. This part is true.
However, 🧐🧐
the demand they are trying to lower is the demand for energy. That includes the energy used to make, and deliver to the store, the products you used to buy with your “Discretionary” income.
By raising the prices on energy, to the point all you “CAN AFFORD” is housing, shelter, energy, food and fuel… you no longer HAVE ANY DISCRETIONARY INCOME for other things (ie less energy used)
🤬🤬
The politicians and banks are trying to make people poorer.
Poor people are easier to manage.
This is ultimately what they mean by “managing the transition.”
“You” are what is being managed.”
Q Does that answer your question?
A 🤬🤬🤬🤬🤬🤬
Most Excellent , SD!
My newest “talk to them in terms they can identify with” rant.
Thank You!!
The Fed Reserve is not trying to shrink the economy as its primary goal (i.e., for political purposes). It’s trying to clear years of idiotic QE/ZIRP damage from the system that led to multiple asset bubbles (to include huge debt leveraging; the real financial system risk globally at this juncture) – and reduce what it negligently thought transitory from becoming embedded.
As usual, its response is ill timed and misfiring. It needed to start QT a while ago and moderately goose the interest rate pedal.
The political pressures from PDJT to Brandon have been to keep unemployment low. Given the tools at its disposal, the Fed can only attempt to arrest or dis-inflate on the demand side. Battling inflation is its stated primary goal at this point.
Its been a collective cluster you know what from start to end by all parties. Wealthier folks are gonna get hit by all of this as well.
To be clear: do I believe the FR is needed? A powerful institution basically owned by the private banking/investment sector? Nope. An institution that seems destined to always make the wrong decisions? Nope. An institution that has basically overseen the devaluation of the dollar since its inception? Nope.
Everyone better hope the margin calls don’t start to cascade. All **** will break lose and electronic gates in wealthy Potomac/Pinecrest/Hollywood neighborhoods aren’t going to be enough to weather the probable reaction.
As for oil, we all know the answer: drill baby drill – to include Canada and Mexico which provide about 60-70% of our imports. And more refinery capacity – operational refineries have been declining for the last 30 years.
We will see how the political process addresses all of this. GE just changed its policy on nuclear.
No government can survive once its population has turned on it. The current dilemma/challenge is two-fold: moving more of the right people into decision-making positions (certainly political but elsewhere as well) and, for however long it takes, persuading enough of the ideologically abused to a world-view more grounded in reality such that there is sufficient mass driving needed changes. Unfortunately, it appears social upheaval rather than reason will be the initial spark.
phillip, although I can’t disagree with you on specifics, it’s the…
“idiotic QE/ZIRP damage from the system that led to multiple asset bubbles (to include huge debt leveraging; the real financial system risk globally at this juncture) – and reduce what it negligently thought transitory from becoming embedded.”
…dialog that makes most eyes glaze over.
Connecting the dots you mention, imho, is too far afield for most I come in contact with.
I’m taking a “Closer to Home” approach. I believe that tact is more likely to at least get some brain cells firing. (keeping in mind many continue to be flummoxed by the whole “Gender” thang…)
Regards…
That’s fine. One only has to look at the charts. Opinions can vary without prompting one to charge the ramparts. Almost certain we agree on what needs to happen to fix things.
In the event, regardless of everything around us, enjoy life. It’s awfully short.
The other side to the ongoing farce is that the Climate Change faith never engineered an effective transition plan.
They eff’ed up and they will pay a price. IMO, it’s just matter of how much pain has to be suffered before the opposite and perhaps equal reaction takes hold. Then again, opinions are like….
This is their plan. Stop producing energy. Lower demand. I don’t think they much care that this will kill off a percentage of the population. Rule the remaining poor folks. Feudalism for the many; kingdoms for the few.
Killing off a percentage of the population is a feature, not a flaw.
They have forgotten that the population belongs to Almighty God, not them.
Not exactly. And what they have been orchestrating is failing.
Look at the data.
The percentage of hydrocarbons as the source for global energy production as been increasing. Think denuclearization.
Total global consumption of energy has been increasing. Oil, coal, gas have all resumed an upward trend post pandemic.
Total Global energy production has also been increasing post pandemic.
Global population continues to grow – particularly in Asia and Africa. Fertility rates and population growth rates have been declining in Europe….and the US.
This whole global genocide meme seems far-fetched to me. It’s reads much like the climate change hysteria vis imminent planetary death.
In my mind, what seems much more plausible is the narrative pitting the post-WWII Western/US financial system hegemony against the BRICS++ commodity based trading/International commerce system. Trillions are at stake. Bretton Woods III (and various UN orgs) is responding (or forcing) the partitioning.
I do believe this is about power – specifically retaining power (i.e., control) by Western/US financial interests and their political operatives. The whole climate change “science” is a vehicle for retaining power/control as the global financial system partitions. Bear in mind, there is absolutely nothing wrong in advocating for energy transition – assuming energy markets permit unimpeded capital flow based on true, accurate price discovery at the margin. Let capital flow freely based on true demand and supply costs at the margin. That aint happening. The data shows it even when internalizing environmental costs. Which then begs the question – why has oil & gas CAPEX among the biggins (Chevron, etc.) been declining for over a decade (i.e., future supply/capacity)? That’s where the objective is being forced. That should be obvious and has been highlighted in this very forum: the unholy alliance of global oligopolies and government. This is what it has been about from day 1 – IMO: retaining the global financial interests power and sustaining corporate oligopoly (throw in the MIC if you like).
The global financial system is splintering. WEF, resurgent Malthusianism, Climate Change hysteria are all cover. The cover has created some weird alliances (e.g., Leftists and Neo-Cons) leading to very dangerous strategic and operational outcomes. Its led to overtly biased analysis and data withholding (conduct some online searches sometime vis global energy production – it’s wildly less documented/analyzed than consumption by energy source and greenhouse gas generation data). As documented at CTH, the power play includes fundamental restructuring of power nodes and accountability inside our own government. It has led to a coopting or overt corruption/politicization of core institutions including most especially the education edifice and the media.
At this point, for me at least, I don’t care about or listen to the genocidal rhetoric; anymore than I do climate change dystopia. It’s about sustaining power and control at the outset of major shifts in global economic power. Each degree that control increases is one degree less of freedom and individual choice for you and me. Rooting this out is going to be a much broader challenge than winning some elections – that’s just a necessary condition not a sufficient condition. It’s gonna take massive discovery, restructuring, accountability, alternate vision shaping and implementation – all predicated on broad popular support.
Oil CAPEX by the big five has declined 50% since 2013. That lies at the heart of current supply side problems – underinvestment in discovering and drilling new supply. It didn’t start yesterday. The Ukraine war sanctions exploited a big systemic vulnerability – there was/is simply little spare capacity globally.
What drove the CAPEX (capital spending) change? The big players can invest globally. Certainly climate change “science” (whether one agrees or disagrees), Paris Accord, ESG, etc., played a role. But what drove the bigs (except Exxon which eventually turned the CAPEX slope from negative to positive circa 2019)?
Point being the seeds for what we are experiencing now were sewed a decade or more ago.
reverse inelasticity of demand
Demand is rising. We are spending more on petrol and potatoes.
Bling bling from China sales are way down.
You are absolutely correct.
Friedman never imagined that the US Administrative State would go full Marxist.
What we are looking at is the change of focus from demand side (e.g. kill off the middle class by shipping jobs overseas – Thanks to POTUS 45) to now starving the middle class through supply destruction.
But it needs to be emphasized that it is the middle class that is the enemy of the neo-Marxists. Reason being that middle class uses most of the “global” resources. And Marxists, being the zero-sum-game crowd, know only now to redistribute wealth, never to create it.
He also never envisioned money managers to moon light as climate “scientists” either. https://fortune.com/2022/10/20/nouriel-roubini-investing-real-estate-inflation-hedge-midwest-not-florida-texas-climate-change Roubini tells the readers of this link to invest in real estate in the mid-west. Why? Because due to global warming in 20 years southern Florida will be under water and Texas will be too hot to live in. I have relatives and friends who believe this nonsense. He also has a new book entitled: Megatrends.
Anyone been to Plymouth Rock lately? You’d think that should be under water by now too. Oops, there it is…
God help us.
Thank you. Keep hammering this message home, and I’ll keep reposting it.
Maybe it is just me but what is so hard to see what we had for 4 years of Trump. Don’t care about his mean tweets which I doubt was him sending them anyway. Most of us were happy, felt secure, had food, were able to save some money, were not arguing with one other. The mood in this Country now is so toxic thanks to these greedy corrupt money grabbers. My suggestion is TERM LIMITS.
And no one I’ve spoken with understands this…
Do not forget the deliberate dilution of the American population, especially white populations.
The NWO/WEF/CCP OBAMA supported illegals flooding across our southern border ! Last count realistically was over 30 million deposited among communities across the nation . Their ultimate goal is over 100 million many popping out anchor babies further increasing their numbers .
This plan fits perfectly with bankrupting American citizens while killing them off with Covid vaccine poison And sterilizing and sickening many of young Americans.
This will create a huge dependent group easily manipulated.
Add the cartel gang loyalty and that is just icing on the cake .
True Americans that actually fight back doing what is necessary will soon find themselves dead or behind bars by the corrupt parasites in charge ! Case in point :The January sixth Committee Kangaroo Court That first dreamed up false charges on a grand scale and then cooked up lies and liars to support their verdict . The committee belongs behind bars not the Americans that entered the Capitol building.
How do you trespass people entering their own property !
American citizens own every brick stick and window and we allow those working there to do so at our pleasure and approval!
They are Nothing But Hired Help and many elected , appointed and hired need to be fired with extreme prejudice for treasonous acts and failure to honor their oath!
I Know Dream On …
FORGET ME NOT
MMT
I keep hearing the controlled opposition saying the Joke BiDung administrations is full of incompetent staff but, is it? Is the illegitimate administration incompetent or performing perfectly to plan?
I believe this is the work of the WEF or some other nasty globalist group. This is a planned process to reduce the population by starvation, disease or death by vaccination, and exposure to the elements.
The extermination effort is aimed at white populations mostly as evidenced by the lack of COVID shot requirements for those invading America via the southern border and Europe. So, kill off the white population and you are left with a population that is easier to control because they are uneducated and conditioned to work menial jobs with little pay and content to live in poverty as long as the government provides them with the bare minimum required for subsistence. I believe the plan was put forth by the U.N. and their Agenda 2020 and Agenda 2030. It’s all there.
“Expanded monetary policy makes money worth less”. Never truer words spoken.
Now add Russia leading the world off US dollar reserve.
And many countries now seeking other than US dollar currencies for trade to avoid sanctions or removal from SWIFT because US doesn’t like their actions.
That’s many levels from Friedman but it is these statements are also true.
Imagine our inflation rate if the dollar were not up significantly over other currencies?
Sundance your concerns over energy and control are symptoms of the much larger currency issue.
The government seeks control because they know the chaos which will follow as we lose currency reserve status.
The lying is incredible. It’s like dealing with an purposely obtuse person. Unbelievable !
Just wonder how long the “too big to fail banks” will continue go along with this everyone making less money and utilizing fewer services (in a service driven economy no less!) idea? At some point it’s in no one’s best interest to follow such a suicidal plan.
Maybe the big banks will join BRICS too at some point.
seems like the Bankers are buying gold…..if we do our economy correctly, we could still have the strongest fiat currency, our banks will pay interest, others will put their money in USA as it has the best history, we will rebuild our manufacturing, for our necessities, and get the fun stuff from our new, and old,,friends, rewarding them with trade.
All the while doing away with monopoly, duopoly, and guarantee Free Economy, no national banks, all local to a State. Any company that has control of more than 30% of a market will pay a 10% tax premium for every 1% over. Should encourage competition.
Eliminate 70% of Gov. 70% of regulations….restrict Fed Gov to ensuring free competitive economy….no fraud. etc.etc.
Also, as the dollar becomes stronger, those who bought gold when the dollar was weaker, will have to sell it to a strong dollar, thereby losing value, as their fiat currency will devalue relative the dollar.