Federal Reserve Chairman Jerome Powell delivers testimony today before the Senate Banking and Finance Committee.  During his statements Powell says, “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated.” Powell continued, “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.“… “We will continue to make our decisions meeting by meeting.” …  “Although inflation has been moderating in recent months, the process of getting inflation back down to 2% has a long way to go and is likely to be bumpy.”

Everything about the testimony to the Senate, and almost everything within the questioning as presented, ignores the key and central component that inflation is being driven by energy policy.   The scale of the pretending around this issue is jaw dropping.

Western governments, including the U.S. through Joe Biden, have limited and curtailed the production and exploitation of Oil, Coal and Natural Gas.  At the core of the inflation within those same governments, this is the issue at hand.  Energy prices have skyrocketed, driving the cost of everything through the roof.  The central banks are raising interest rates in an attempt to shrink the economy to match the drop in energy production.   This is their monetary policy (interest rates) attempting to support economic policy (Green New Deal / Build Back Better).

There are no lines for consumers in the U.S and Europe of people buying durable goods, electronics or shopping for non-essential items.  Prices on the products within the durable goods economy are not being driven by excess consumer demand.  There are not 25% more people buying lemons and milk than this time last year.  The prices for goods in general, and for essential goods specifically, have risen as an outcome of the input costs around energy skyrocketing.

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Coming out of the pandemic related disruption, the larger story of U.S. manufacturing has been an odd blend of good data and bad data depending on the sector.  While some manufacturing was growing as a result of clearing supply chains, other sectors of manufacturing remained soft.

In total, the full supply chain rebound should have completed around the end of the third quarter, beginning of the fourth quarter of 2022.

However, simultaneous with the correction within the supply chain(s), consumer purchase activity began contracting.

The consumer pullback led to very weak holiday sales last year, and a combination of increased inventories of finished goods.

Keep in mind that Maersk overseas shipping noted significant drops in orders for the movement of material in the third quarter of last year.  Considering the lag, the previously noted inventory buildup in combination with the drops in unit sales of durable goods, would generally mean lower manufacturing purchase order activity Q4 (’22) and Q1 (’23).   This reality is reflected in the actual data as reported by The Wall Street Journal:

(Via WSJ) – […] New orders for manufactured goods contracted for the sixth straight month through February, according to surveys by the Institute for Supply Management. Manufacturing output is down 1.7% from its postpandemic peak in May 2022, according to a three-month moving average of Federal Reserve data. And the Commerce Department’s measure of civilian capital equipment orders, excluding aircraft—the building blocks of business—was down 3.4% in January from its recent high in November 2021, after adjusting for inflation.

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He’s not called China Joe for nothing.  This is quite a considerable amount of U.S. tech products delivered to blacklisted Chinese companies.  It would be interesting to trace the multinational kickbacks to the Biden administration.

March 3 (Reuters) – The Biden administration approved 192 licenses worth over $23 billion to ship U.S. goods and technology to Chinese companies on a U.S. trade blacklist in the first quarter of last year, according to a document released by a U.S. congressional committee on Friday.

The 192 licenses granted were out of 242 license applications decided between January and March 2022, a chart showed, and 115 of those approved contained controlled technology. Nineteen, or 8 percent of the total number of applications, were denied, and 31 were returned without action.

Republican Representative Michael McCaul, chair of the U.S. House of Representatives Foreign Affairs Committee, released the license numbers on Friday after revealing at a hearing on Tuesday that more than $23 billion worth of licenses were approved for suppliers to companies on the U.S. Department of Commerce’s “entity list” in the first quarter of 2022.

In a statement on Friday, McCaul called the approvals unacceptable. “This critical U.S. technology is going to the Chinese Communist Party’s surveillance and military efforts,” he said. (read more)

Beijing knows they can purchase U.S. political outcomes. At this point the pretending is embarrassing.

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Everything about the progressive worldview of control is connected; the trick is to identify the priority that forms the motive of the connection.  In the example of U.S. involvement in assisting the control efforts of Nigerian progressives, the priority is energy and the climate change agenda.

Georgia’s twice-failed leftist gubernatorial candidate, Stacy Abrams, joins the globalist cause in seeking to “assist election efforts” in Africa’s oil rich nation of Nigeria.

If you have followed the geopolitical bouncing ball, you will likely have context for the priorities of western political leadership as it pertains to controlling African democracies.

[A cliff notes summary HERE]

The larger picture is the World Economic Forum and the Western Leadership alignment to control energy development in the African continent.  In addition to vast mineral deposits, there are oil and natural gas interests.

You might remember last year when the G7 were debating geopolitical policy. Some in the EU and western alliance said let the brown people die, climate is more important. Others were saying, if they allow mass starvation just to retain the WEF climate ideology, they may lose influence in the world.

The debate was raging, as noted by Reuters: “the European Union is divided on how to help poorer nations fight a growing food crisis and address shortages of fertilizers 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.” {link}

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Requested to stick at top of site for few hours. /SD

This is it. This is pure MAGA. President Trump is announcing the big one… “Economic Agenda 47“

This is the economic policy blade to drive a stake through the vampire heart of corporatism, globalism and the exploitation of the U.S. economy by multinational corporate interests. This “universal baseline tariff” approach, is the policy that slays the dragons of the World Economic Forum, destroys the Beijing dragon and simultaneously ends the EU Marshal Plan advantage. This is a big deal.

President Trump makes the economic policy announcement today, and it is an incredible structure of trade and economic proposals that would be resoundingly effective at restoring every financial mechanism within the United States as a sovereign country.  The proposal is economic nationalism in policy form.

First, here’s the announcement {Direct Rumble Link} – WATCH:

[Transcript] – “Joe Biden claims to support American manufacturing—but in reality, he is pushing the same pro-China globalist agenda that ripped the industrial heart out of our country. It ripped us apart. Biden and the globalists support RAISING taxes on American production. They support MORE crippling regulations killing American jobs. They support skyrocketing domestic energy costs. And they support massive anti-American multinational agreements that send our wealth and factories overseas.

Very simply, the Biden agenda taxes AMERICA to build up CHINA.

China is the big beneficiary. We cannot let that happen. And just a couple of years ago, it wasn’t happening. China paid to the United States hundreds of billions of dollars and no other president got ten cents. Legitimately, ten cents from China.

My agenda will tax CHINA to build up AMERICA.

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With around 4,000 miles separation, two friends of the Treehouse, Neil Oliver and Lee Smith, essentially asked me the same question this week, “how do we stop this madness?”

It should not be an option hearing this talk about the need to secede, fracture, isolate or form smaller defensive boundaries.  WE ARE IN THE MAJORITY, they just control the power structures and systems of communication. That’s why they spend so much time, effort and attention manipulating social media. My proposed solution is to draw from history, specifically from the Polish solidarity movement.  What we need is a general two-day workers strike, highlighting to the few that the many have had enough.

In his weekly monologue Neil Oliver takes the new issue of rationing vegetables in the U.K and overlays the surplus of lies that creates it.  Neil Oliver generally has exceptional insight and strong grasps on the obvious; however, this one is epic and one of his best. WATCH:

[Transcript] – They’re rationing tomatoes in the supermarkets. We’re told it’s about supply chains, bad weather and the price of heating, but right now, in terms of the messaging, I suspect it’s more about pushing the word – rationing. Less about any believable shortage of food and more about getting us used to hearing the word.

No doubt, if experience is anything to go by, the rest will come later. My money says the rationing app for our smartphones is already sitting on a hard drive somewhere, ready when we are.

For now, it’s more of a familiar process of psychological manipulation. Get us acquainted with the general idea of food scarcity so that we’re well-primed when the planned reality is unrolled.

We were given the same treatment with words like “lockdown” and “pandemic”, “mandate” and “denier”. Nudge, nudge. Rationing is a word from our parents’ and grandparents’ generation, a bit like “War in Europe” and “Fascist” and now they’re back in fashion once more. Rationing, I ask you, while the landfills swell with fresh food dumped every day.

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Oh boy, FOR ME there isn’t enough tinfoil folks.   Then again, FOR US, we have previously been outlining the “watch Mexico in 2023” oil production and energy issue for several months now.

Three oil refinery fires at three different facilities on the same day… isn’t good.  Because it just seems to be too coincidental to be coincidental.

MEXICO CITY, Feb 23 (Reuters) – Three fires broke out on Thursday at different facilities in Mexico and the United States operated by state-owned Mexican oil company Pemex, leaving five missing and eight others injured as of Thursday evening. (read more)

Making tinfoil matters worse, I previously emphasized, “The U.S. and Canada are going to push every possible political pressure point in order to force Mexico to change energy policy.  The stakes are high. It is going to be remarkable to watch what happens as this battle takes place. Watch Mexico in 2023.” {LINK}  A few weeks later, with more data assembled, I added, “I’m not talking about little threats, or ordinary economic pressure points; watch closely how the U.S threats are established.  The ideologues around Joe Biden will seek to destroy AMLO if he does not go along with the energy change effort. {LINK}

The origin of the issue traces back to July of 2022, when Mexico President Andres Manuel Lopez-Obrador visited the White House {Go Deep}.  During a jaw dropping statement delivered publicly from the Oval Office, AMLO told Joe Biden he was not going to join the U.S. and Canada in shutting down oil use and refining capacity for low cost gasoline:

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The Biden administration and UniParty congress continues announcing additional tranches in tens-of-billions in U.S. taxpayer funds to support Ukraine.  The total spent or committed now exceeds $100 billion in just one year alone, with no end in sight.  We are funding almost all military operations and the government expenses of Ukraine to include pensions, pay and benefits for Ukrainian officials.

During his opening monologue Thursday, Tucker Carlson outlines the Joe Biden “as long as it takes” policy.  WATCH: 

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First things first, history may not always repeat, but it always rhymes.  Secondly, history tells us that only two things have ever pulled what we now call “western nations” out of a collective economic depression; (1) war, and (2) housing starts.

If you accept the WEF climate control agenda of a ‘managed transition‘, where economies are reduced in size to match lowered energy production, as generally speaking akin to a western economic depression.… then, you begin to ask the logical question.  How do the managers avoid the consequences?

If global (non BRICS) economic contraction is akin to a western economic depression, I would argue the consequences are identical.  Then, when major economies are in a state of shrinking and the citizens are feeling the horrible effects, something large is needed to change the economic equation.

With central banks raising interest rates to achieve the policy supporting contraction, the option for ‘housing starts’ to change the dynamic is removed.  That leaves, ‘war’.

President Putin and Chairman Xi are not stupid men.  They are big picture strategists.

♦DATA POINT – Russian President Vladimir Putin’s move to suspend his country’s involvement in the last remaining arms control treaty with the U.S. came as a disturbing surprise to multiple former officials who negotiated the pact and nonproliferation experts committed to ending the expansion of nuclear forces. (read more)

Can you blame him?  The Western Alliance has already blamed Putin for the global food crisis they created by the World Economic Forum energy policy shift.  The Western Alliance accepts no responsibility for advancing hostility -through NATO expansion- on to Russia’s doorstep.  The Western Alliance has attempted to sanction Russia out of the global economy.  With the same Western Alliance now positioning for war, why would Putin adhere to their limitations?

♦DATA POINT – Chinese leader Xi Jinping is preparing to visit Moscow for a summit with Russian President Vladimir Putin in the coming months, the Wall Street Journal reported on Tuesday, citing people familiar with the plan. (read more)

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Follow the bouncing ball of consequence….

(Via Daily Mail) Vegetable rationing could last for ‘weeks’, it was warned today, after Morrisons joined Asda to became the second major supermarket to limit sales of certain items. 

Perishables like tomatoes, potatoes, cucumber and broccoli have been restricted to just two or three per customer in a host of stores up and down the country.

The crisis has developed in recent weeks due to soaring energy costs which have forced British farmers to switch off greenhouses as they desperately try to make ends meet – leaving a dearth of home-grown produce. (read more)

While it is prudent to remind everyone how fortunate we are to have Florida, California and Mexico for North American vegetable supplies, ie. no dramatic supply shortages, the energy price pressure being applied by Biden policy will lead to even higher consumer prices for all row crops.

18 months ago (Oct 2021), CTH first strongly recommended restarting victory gardens at home. The same recommendation only strengthens.

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