One might think the U.S. Inflation Reduction Act would be constructed in such a manner as to help Americans by reducing inflation.  However, not only does the Inflation Reduction Act not help reduce inflation, but the climate change bill carrying the name The Inflation Reduction Act is now the cause for complaints by Europe and Asia because the falsely named spending bill doesn’t help their economy.

The issue stems from the part of the climate change bill that provides a $7,5000 federal tax credit for electric vehicles.  As the bill was written the vehicles needed to be assembled in the USA with battery components mostly sourced from the U.S.A.   Europe and Asian automakers are not happy because they want their vehicles, made in Europe and Asia to benefit from the tax credit.

Of course, the first thing Joe Biden does is tell Europe and Asia he will modify the rules to permit vehicles made outside the USA to benefit.  The exact opposite of the intended construct of the bill in the first place.

But,… that’s multinational corporate globalism in action.

WASHINGTON—The Biden administration on Monday delayed proposing detailed rules for new tax incentives for electric vehicles, following strong pushback from European and Asian allies that the subsidy program discriminated against their companies.

The Treasury Department said details on the battery-sourcing requirements that electric vehicles must meet to qualify for up to $7,500 in tax credit will be released in March, instead of by the end of this year as earlier planned.

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The G7 leaders have been debating the problem of African farming for quite a while. The issue surrounds the conflicts between the G7 climate change agenda and the need for Africa to develop fertilizer production to enhance their farming and crop yields.

As noted in a Reuters article from June, “the European Union is divided on how to help poorer nations fight a growing food crisis and address shortages of fertilisers caused by the war in Ukraine, with some fearing a plan to invest in plants in Africa would clash with EU green goals.”  As the argument unfolded, “the EU Commission explicitly opposed” any effort to enhance African fertilizer development, “warning that supporting fertilizer production in developing nations would be inconsistent with the EU energy and environment policies.”  

The energy development corporations, the source industry needed to create the components for nitrogen-based fertilizer, have been waiting to invest in African energy production pending the approval of western government decisions.  Addressing the issue today, Joe Biden told the African Union the United States would send an emergency $2.5 billion in food crisis aid to offset the inability of Africa to feed itself.

In essence, instead of Western government policy supporting energy production in Africa that would lead to a greater farm yield, and by extension a greater level of food independence, the Biden administration would rather restrict energy/food development in Africa and send them food subsidies; because, climate change.

(White House) – […]  President Biden announced an additional $2.5 billion in emergency aid and medium to long-term food security assistance for resilient African food systems and supply markets, which builds upon over $11 billion in U.S. humanitarian and food security assistance for this year alone.  President Biden also launched a new strategic partnership on food security between the United States and the African Union.  

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As we have often discussed on these pages, inflation would ultimately moderate and plateau not because prices were dropping but rather because of the calendar cycle.

As the economy cycles through a year of large price increases, the current inflation rate cycles through to the period when prices first increased.  This calendar cycle means continued price increases are lower as a percentage and thus the inflation rate appears to modify despite prices continuing to rise. [BLS Report]

This scenario, prices remaining high and continuing to climb – yet lower as a percentage, now provides the justification for the federal reserve to state inflation is moderating.

(Via NBC) – Amid signs that price growth in the U.S. economy is rapidly cooling, the Federal Reserve announced Wednesday it was slowing the pace of its rate-hiking program designed to tackle inflation — but that more hikes were still on the table.

The Federal Open Market Committee said it was increasing its key federal funds rate by 0.5%, after announcing four-straight 0.75% hikes at its most recent meetings. In its Wednesday statement, the Fed said it continues to target an inflation rate of 2% over the long term and would continue to increase the federal funds rate to do so.

“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the committee said.

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It’s subtle like a brick through a window when you have the bigger picture in mind.

Joe Biden and Canada’s Justin Trudeau are in ideological alignment, willing to destroy the entire North American economy as they construct the new climate change energy systems for the U.S and Canada.  However, Mexican President Andres Manuel Lopez-Obrador (AMLO) has already indicated -including direct statements to Joe Biden at the White House– that he is not willing to put the Mexican economy into collapse and try to engineer an economic future on solar panels and windmills.

That puts Mexican President AMLO in the crosshairs of a unified climate change agenda as outlined by the World Economic Forum and western leadership under the guise of the Build Back Better agenda.  In essence, AMLO goes from socialist hero of the unionized left to becoming a target.  CTH has been saying we need to watch carefully how this plays out because a great deal of the western economic agenda hangs in the balance.

Now that AMLO has taken a pragmatic position on energy development {Go Deep} his lack of alignment means the apparatus of the United States government, the proverbial Eye of Sauron, will target him.  Not coincidentally, the public relations firm for the deepest part of the interventionist intelligence apparatus, the Washington Post, now outlines AMLO as the specific person responsible for the explosion in fentanyl use.

(Washington Post) – […] A new Mexican leader rejected the $3 billion anti-narcotics agreement that had spanned three U.S. presidencies, known as the Mérida Initiative. Andrés Manuel López Obrador, a veteran leftist who took office in December 2018, argued that the drug war strategy had sent homicides spiraling in Mexico while failing to curb U.S. demand.

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For his weekly monologue today, U.K pundit Neil Oliver looks at the climate change agenda, energy policy, and the constructs of how the new green agenda manifest to create new ways for people to die.

We aren’t allowed the energy available from a century of gas beneath our feet here in Britain – because it’s not Green. But we’re paying top dollar for nine billion cubic litres – twice as much as last year’s order – of gas fracked out of the ground in the US. WATCH:

[Transcript] -Winter arrived last week – and with it a dose of reality. All that talk about wrapping up warm in the house, putting on an extra jumper, hot water bottles, full-size onesies – it’s dangerous nonsense. It might be fine for a while if you’re a healthy adult – but it’s a tragedy in slow motion for babies, young children, the elderly, the sick.

And it’s only the second week in December. It’s a long time until Spring.

Even if layering up and donning a hat were enough to keep a body going, once cold properly gets a grip of a house, it too starts to die in its own way.

The creep of dampness that takes its own toll on house and health alike. Frozen pipes – followed by burst pipes – and not enough plumbers to go round. People who can’t afford to heat their homes are likely struggling with spiking food bills as well.

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It is always worth a reminder when reviewing anything from Blackrock, that the institutional investment firm has strong ties to almost every sphere of White House policy.

Today Blackrock is warning of severe economic conditions looming, the unspoken origin traces to the collective western economic shift in energy policy, aka “Build Back Better.”

As noted in the Blackrock warning, under the auspices of inflation control, central banks can try and shrink economic activity – but they are limited.  Organically, economies will free fall once the full weight of BBB energy policy accumulates.

(Business Insider) – […] A worldwide recession is just around the corner as central banks boost borrowing costs aggressively to tame inflation — and this time, it will ignite more market turbulence than ever before, according to BlackRock.

The global economy has already exited a four-decade era of stable growth and inflation to enter a period of heightened instability — and the new regime of increased unpredictability is here to stay, according to the world’s biggest asset manager.

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Carbon trading is the economic platform to generate government income.  That income then drives the carbon control financial mechanisms that will be deployed to the people.  At the end of the financial lane, we arrive at a world with Central Bank Digital Currencies (CBDCs).  The digital money provides instant control over spending and carbon resource allocation.

For many years the carbon allowances for individuals were esoteric goals as presented by those who assemble at various global COP meetings, Davos and the World Economic Forum.  However, with rapid advances in the energy control process, a result of the pandemic and Build Back Better exit, the control officers are now quantifying the specifics for the individual citizen. [pdf Here]

In short, we are now getting down to the brass tacks.  Your resource allocation is part of the “consumption intervention” consideration, where the amount of carbon emission your consumption drives is what determines the goal for your future allocation.

[From the Abstract] – There is a growing consensus, based on compelling evidence, that the world is facing a climate crisis and rapid action to reduce greenhouse gas emissions is a necessity. Historically, decision-makers and academics have discussed a range of options that can reduce our carbon footprint over the long-term. However, recent evidence demonstrates that choosing between one option and another is no longer compatible with rapid and significant emission reductions.

Increasingly, all options are required, and this involves multiple actors exploring how they can respond to the current climate crisis; including national government, cities, business and civil society. (read more)

As you can see above, the goal is to remove meat and dairy products completely.

In the next chart, you can see your allocation for “net clothing and textiles“:

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There’s a disconnect in the Main Street data that is perplexing from the standpoint of traditional economic and labor analysis.

There have been significant layoffs in the labor market as the result of diminished consumer spending activity. However, the Bureau of Labor and Statistics (BLS) is reporting a hotter than expected 263,000 new jobs in November [DATA HERE].

There were declines in jobs within the retail sector [-30,000 in Nov, -62,000 since August] and declines in warehousing and transportation [-15, 000 in November, -30,000 since July], which would indicate the outcome of lowered consumer spending on goods, or at least a change in consumer spending priorities.

Simultaneously, there were significant increases in jobs for leisure and hospitality [+88,000 in Nov], with the majority of those gains in food service and drinking.  However, that sector is still lower than the pre-pandemic by -980,000 jobs.  Also note people are not attending events with high ticket costs, the performing arts and spectator sports segment dropped 7,000 jobs [Table B-1]

Overall, if you were to look at the macro level jobs report, anything attached to the traditional spending of durable goods (retail stores) is declining.  However, the jobs related to the service or life experience are growing.  Oddly, and perhaps creepily, this dynamic falls in line with the ‘you will own nothing and be happy‘ cliche’ that has been oft spoken about the new post pandemic ‘Build Back Better‘ economy as espoused by the World Economic Forum.

Job gains in the infrastructure of life such as, building and construction, as well as the labor sector associated with skilled domestic service trades like plumbing, electricians, maintenance, etc are continuing to hold stable.  The major shift in the labor market surrounds the buying of durable goods which has disappeared along with the disappearance of discretionary income.   Which brings us to the wage portion of the BLS report.

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West Virginia Treasurer Riley Moore lead the way earlier this year in removing Wall Street financial firms from holding state funds due to ‘Environmental, Social and Governance’ or ‘ESG’ climate change ideology driving investment decisions.

West Virginia had been the tip of the spear since early 2021 {link} removing Blackrock in January of 2022, and even removed banking contracts from multiple investment firms during the battle and asked other states to join in the effort {link}.

Today, Florida Chief Financial Officer Jimmy Patronis announced the DeSantis administration would be following the lead from West Virginia.

[FLORIDA] – […] State Chief Financial Officer Jimmy Patronis announced Thursday that Florida will immediately freeze about $1.43 billion in long-term securities and about $600 million in short-term overnight investments managed by BlackRock because of the firm’s use of “Environmental, Social, and Governance” standards — known as ESG.

Patronis in a prepared statement said he doesn’t “trust BlackRock’s ability to deliver” and “BlackRock CEO Larry Fink is on a campaign to change the world.”

“Whether stakeholder capitalism, or ESG standards, are being pushed by BlackRock for ideological reasons, or to develop social credit ratings, the effect is to avoid dealing with the messiness of democracy,” Patronis said.

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The true cause of inflation, and yes that includes ‘global inflation ‘, is the collective western economic jump into climate change energy policy known as “build back better.”  Stopping the use of oil, gas and coal as the source for cheap energy, has resulted in every element of the inflation now outlined.

As an outcome of their ideology, the central banks of the western economies began desperately to lower economic activity to reduce energy consumption.  The goal was/is to lower human economic activity to the point where windmills and solar farms can sustain it.  Everything else is pretending.  Tucker Carlson finally points this out. WATCH:

Coming out of the pandemic, western oil, coal and gas energy development was blocked.  Immediately energy prices skyrocketed, driving up the costs of everything.  Using the justification of “too much demand” the central banks (including the U.S. Federal Reserve Bank) are raising interest rates to lower the need for energy.

Western political leaders are pretending this is not a collective intention.  However, their prior promotion of the Build Back Better agenda belies their current protestations.

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