West Virginia Senator Joe Manchin was on every Sunday talk show today (CNN, NBC, ABC, CBS and Fox) responding to his reversal of position on the Build Back Better legislative package (Green New Deal spending) that is part of the senate budget reconciliation bill.  There is something very interesting in his justification. [Do not skim read this, all citations included]

Fox News Brett Bair does the best job challenging Manchin on his prior statements saying there would be no spending deal without first seeing the August inflation data. [LINK].  Manchin never answered that hypocrisy directly but says there are two components of the deal, two parts of a new future legislative bill, that brought him to the agreement on the $370 billion current spend.

The current Senate bill is a reconciliation bill, meaning it involves taxes and spending – AND ONLY taxes and spending, because the bill originated in the House.

The constitutional framework for taxes & spending requires the House to originate all spending bills.  If a desired additional measure does not involve taxes and spending (a budgetary impact) it cannot be added to a reconciliation bill.  The senate must originate a new bill and then send it to the House.

According to Manchin the deal between himself, Chuck Schumer, Nancy Pelosi and Joe Biden includes his support for the current green energy spending, in exchange for two new items in future legislation: 1) Streamlined energy permitting/regulation; and 2) Increased development of Oil, Coal, Gas.  Both of these pieces of legislation have to be handled in a separate Senate bill.

According to Manchin, his agreement to the current spending bill was contingent upon a promise that: (A) Senate Majority Leader Chuck Schumer will generate a new bill for streamlined energy permitting and increased oil, gas and coal development; (B) House Speaker Nancy Pelosi will take up the Senate bill and whip enough of her House Democrat membership to join with Republicans in support of that Senate bill; and (C) Joe Biden will sign that increased energy production bill.

Here’s the important part.  Senator Manchin claims he has leverage over Biden, Pelosi and Schumer to ensure a new bill with those priorities is created and advanced.  Manchin further claims there are “consequences” for Biden, Pelosi and Schumer if they were to renege on the deal.  He is quite emphatic about that point if you listen to the NBC interview.

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The pretending from the federal reserve chairs continues.  In this interview, Neel Kashkari, the head of the Federal Reserve Bank of Minneapolis, says “we keep getting surprised” by data on inflation, which continues to be “higher than we expect, across the broad range of the economy.”  Yet, notice that Kashkari refuses to outline the single cause of the broad inflation is the intentional lack of energy production. [Transcript]

Kashkari continues the selling point that demand side inflation is being targeted because demand still exceeds supply.  That’s essentially true, however, it is the supply of energy that is fundamentally disrupted by Joe Biden energy policy.  It is not consumer demand for goods and services, it is the structural need for consumers to have consistent, affordable energy resources.

The collapse of energy production from domestic coal, oil and gas development is the problem.  Everything else is ancillary to the origination problem.  However, in order to support the climate agenda, the Federal Reserve must pretend not to know this. WATCH:

Kashkari notes a serious problem can arise when wage inflation starts to catch up with inflation overall.  THAT just happened last month.  The combination of wage inflation to match the high consumer inflation then drives an even higher cost for goods and services.  This is the inflation storm that leads to hyper-inflation, structurally high inflation that cannot be controlled by any monetary measure, and unfortunately, we just entered the first outer bands of this inflation hurricane last month.

A personal sidenote: when we were going through the pandemic crisis and response in 2020/2021, CTH took heat for saying the real objective at the end of the pandemic path was the global climate change agenda.  Well, here we are.  At the end of this climate change path is full control over human activity using digital currency.  Hunger games.

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In a remarkable interview attempting to justify his agreement with the senate Build Back Better climate change bill (fraudulently labeled ‘inflation reduction act’), West Virginia Democrat Senator Joe Manchin says the massive energy spending and tax bill will bring green renewable energy much quicker.  In essence, the windmills and solar panels for West Virginia will arrive faster now, and that will improve energy production.  [Transcript Here]

When discussing the new energy origination provisions, Senator Manchin catches himself mid-sentence saying, “the battery better be made in America.”  He quickly corrected himself knowing the claim was false and followed up with, “better be sourced in North America, it better be processed,” because he is well aware the largest employment and investment beneficiaries for his deal will be Mexico and Canada, not American workers.  WATCH:

♦ BRASS TACKS – Canadian Prime Minister Justin Trudeau was gleeful last week promoting Manchin’s new green energy proposal because, with steel and aluminum tariffs removed, Canada will be one the biggest beneficiaries of $370 billion congressional spending package.  Canada has no heavy industry left, they are the assembly economy for foreign manufacturing that uses loopholes, and the senate bill creates a USMCA loophole for this exact purpose.

The West Virginia windmills and solar panels will be shipped as raw materials from China and the EU into Canada.  Canada will assemble the parts and ship the finished goods into the United States for placement by illegal alien workers employed by the contractors.  The batteries to store the solar and windmill power will come from Mexico, after they receive the raw materials from Africa and Asia.

Canadian workers, Mexican workers, Chinese Workers, African workers and ASEAN workers will all benefit from the generous Joe Manchin spending package.

Unemployed West Virginia coal miners will watch Joe Manchin run for office in 2024 on Japanese televisions powered by China, while eating cheese puff flavored cricket snacks sourced from Canada.  Brilliant plan, Joe.

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President Barack Obama’s former campaign manager David Plouffe famously said of Donald Trump’s entry into politics:  “It is not enough to simply beat Trump.  He must be destroyed thoroughly.  His kind must not rise again.” 

What was it that Washington DC and President Obama’s team feared so much about Donald J Trump?

The answer to that question is why the FBI, DOJ and CIA targeted Trump in 2016; and why they continued the targeting in 2017 with the Mueller investigation; and why they continued the targeting through two attempts at impeachment in 2019 and 2020; and why they still keep targeting Donald Trump with the J6 committee and a DOJ investigation two years after he is no longer in office.

Donald J Trump is the existential threat.

When your business involves gaining personal wealth by selling out America, Donald Trump is bad for business.

Barack Obama, John Brennan, Eric Holder and James Comey did not create a weaponized DOJ and FBI; the institutions were already weaponized by the Patriot Act.  What the Obama era officials did was take the preexisting system and retool it, so those weapons of government only conducted surveillance and targeting toward one side of the political dynamic.

This point is where many people understandably get confused.

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At first blush I’m inclined to see Jose Ruben Zamora as the Latin version of Jamal Khashoggi; which is to say, he glows CIA.

Yesterday in Guatemala, the government arrested a “journalist” and “businessman” named Jose Ruben Zamora who was the publisher of a national newspaper and strong opposition voice against the conservative government of President Alejandro Giammattei [WSJ link].  Today, Guatemalan President Giammattei is reported to have survived an assassination attempt, leaving people injured as a result of gunfire [details sketchy].

(Via WSJ) – […] Guatemalan police arrested José Rubén Zamora, a businessman and renowned journalist who heads the elPeriódico newspaper, at his house in a tree-lined residential neighborhood in the capital after a judge issued an arrest warrant against him, the country’s attorney general’s office said.

“This is a political persecution,” Mr. Zamora told reporters, flanked by policemen, in front of his house. A group of people gathered at the site, shouting: “You are not alone! You are not alone!”

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In fact, there are several western nations who see the ‘climate change” energy transformation as an economic kamikaze mission… and that reality is upsetting those who control the larger western alliance agenda.

When we outlined the ‘biggest problem‘ we noted: Brazil, Mexico, and more recently Japan, have started pushing back against the climate change ideologues.  We must do the same.

So, let’s get everyone up to speed.

Factually, Brazilian President Jair Bolsonaro is not only a nationalist leader for his country, Brazil itself is in an emerging economic relationship within the BRICS group (Brazil, Russia, India, China, South Africa).  The BRICS group are not in ideological or geopolitical alignment with the World Economic Forum (WEF) climate change instructions known as Build Back Better.  This lack of ideological synergy is one of the reasons we see a joint effort between the U.S. State Dept and U.S. intelligence group to target Jair Bolsonaro for removal.  [Watch Bolsonaro w/ Tucker Carlson]

Recently, Mexican President Andres Manuel Lopez-Obrador (AMLO) visited the White House.  AMLO is basically soft-socialist, a nationalist who does not like the influence of multinational corporations on the economic politics within Mexico.  When he visited with Joe Biden, AMLO’s public comments in the oval office (he actually had them written down so he would not be deterred from his delivery) about the U.S. chasing a short-sighted and dangerous energy policy, were just ignored by media.  However, watching AMLO deconstruct the Biden energy policy was very telling. [Review Outline Here].

In addition to so-called geopolitical adversaries like Russia, China and Iran, there are also geopolitical allies who clearly see that fracturing the global economy based on energy development, the center of the Build Back Better agenda, is going to create major issues for the citizens within the countries determined by ideological quest to change their energy system.   As noted with Brazil and Mexico, not everyone in the “west” is on board with the program.

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People often wonder why few solutions are presented for the significant challenges we face.  Perhaps it is worth reminding everyone what the biggest challenge really is, and it has nothing to do with Joe Biden or our political system abusers.

The biggest problem we face as a nation is our unwillingness to admit our current condition is the result of purposeful action.

Cue example # [you_fill_in_the_ blank], a visual demonstration:

The central banks did not “fail to spot” the source of inflation.  The monetary policy makers did not make mistakes. The hands that guide the economic system did not screw it up, make mistakes or fail to recognize the consequences of the policy they put into place.

When they meet together at Davos for collective discussions around opportunities presented by the pandemic, the guidebook known as Build Back Better did not just organically materialize.  Nor did all the western governing central bankers make the same mistakes when they followed the agreed consensus.  They knew from the outset the climate change agenda would be a radical transformation of the global energy system, and as a result, the global economy.

The central banks did not collectively “fail to spot” the inflation they were creating by lowering energy production, disincentivizing energy investment, limiting energy development, shifting policy away from new production, and generally breaking the traditional energy system finances.  They knew precisely what they were doing, and they did it -and continue to do it- with forethought and purpose.

This is where people mistakenly view ‘prior justifications‘ as ‘mistakes.’  When they said inflation was transitory, they were not lying about what they created. They were, however, obfuscating the length of the term “transitory.”   Inflation is transitory, from where and when it started in 2021, all the way to where and when windmills, solar panels and clean energy will take over on (fill_in_date_).  That is the “transition.”

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Comrades, Secretary Janet Yellen reminds everyone how important it is to smile and support the policies of Dear Leader as they manage our overwhelming happiness through this period of exceptionally wonderful abundance.

The secretary reminds us that our “household finances are strong” and we have good employment to keep ourselves industrious and valuable on behalf of the state.  WATCH:

The beet and potato harvest will provide soup for everyone, but only if we continue to do our best.  All of the best comrade citizens are cheerful and happy.

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There is less pretending in this segment, but the core of intent is still missing.   As soon as Ms. Bartiromo can admit the monetary policy is specifically designed to create lower economic activity, she will be able to reconcile the policy conflicts which she still views as hypocrisies.

While not outlining the motive, in the segment beginning at 1:07 Ms Bartiromo does a good job outlining the current state of the economy. WATCH:

Comrades, prior to the Joe Biden economy the average American worker was earning 29 onions per hour.  After, the Biden economic policies were put into place, the average American worker is now earning 11 onions per hour.

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Jumpin’ ju-ju-bones, CTH did not expect the BEA to admit the U.S. economy was in recession.  CTH originally predicted the BEA would use lower import data as the primary tool to modify the GDP result.

Factually, in this report, import data -in combination with lower consumer spending- was the primary sector that led to the result.  However, even with drops in the valuation of imports which lift GDP calculations, the economy still contracted.

Things must be much worse than officially admitted (details below), if the BEA is going to admit things are bad.

Gross Domestic Product (GDP) is the dollar value of all goods and services produced in the economy, minus the dollar value of goods and services we import. The percentages discussed are percentages of change over time.

The Bureau of Economic Analysis (BEA) released their first estimate of the second quarter GDP [Data Here] reflecting a 0.9% drop in U.S. economic activity. The second quarter contraction follows a 1.6% drop in the first quarter, which means we now have two consecutive quarters of declining economic activity, the technical definition of a recession.

The two primary data points which show the economic contraction are: (1) Lowered consumer spending; and (2) much lower imports as a result of lower consumer spending on durable goods and non-essential items.  High Q1 inventories of goods were also flushed out by companies and not replaced.  Starting with the consumer spending, here’s the data [Table-2, BEA report]:

Consumer spending, also called “personal consumption expenditures” declined 1.08% for goods overall in the second quarter.

Consumer spending represents two-thirds of all GDP in the United States.  Americans buy lots of stuff, and when Americans stop spending on goods the economy stalls.  As you can see in Table-2, consumer spending on goods dropped 1.08% and spending on services increased 1.78%.  The net difference is 0.70%, a massive drop in consumer spending compared to prior quarters/years.

The next component with major impact is the result of the drop in spending.

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