Nope, it’s not the border crisis and millions of people unlawfully flowing into the United States.  Nope, it’s not the collapsing economy or massive inflation that crushing the working class.  Nope, it’s not the skyrocketing cost of fuel, energy, oil and gasoline as the direct result of catastrophic energy policy….

…”Providing assistance for the Ukrainians to defeat the Russians, that’s the #1 priority for the United States right now, according to most Republicans.  That’s sort of how we see the challenges confronting the country at the moment.”… 

Those are the direct words of Republican Senate Leader Mitch McConnell.  WATCH:

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Tell me again how the Republican party is salvageable?

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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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Friends, in the late summer and fall of 2021 CTH warned of massive waves of price increases that would push inflation to record highs.  We watched as each wave arrived almost on schedule throughout 2022, and as a direct result of Joe Biden energy and economic policy, prices necessarily skyrocketed.

In essence in 2021 we were warning about the expenditure side of the ledger that all working-class and fixed income families would experience.  We advised to take every proactive measure possible to avoid future price increases.

Now, unfortunately, we begin moving those same warnings to the other side of the ledger; because as a natural consequence of consumer checkbook pain, the financial pressure always transfers to the income and employment side of the economic dynamic.

Keep in mind, retail sales are calculated in dollars spent by consumers.   November 2022 retail sales as reported by the commerce department today [DATA pdf], reflect a 0.6% decrease in spending vs October.  November data includes Thanksgiving, Black Friday and the traditional early holiday shopping.  0.6% less dollars were spent, despite prices being double digits higher than the prior year.

When the prices you are charging for goods and/or services are 10, 20, even as high as 60 percent more than prior year, yet your sales are running flat to negative – that means consumer purchases of those goods/services are substantially lower.

If you were selling 100 widgets for $1 each in 2021, you gross $100.   If your widgets now sell for $1.25 and you gross $94 in 2022 sales, you have sold 75 widgets.

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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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An interesting infographic from Will Geary [SOURCE] that gives context to the amount of money the United States is spending in Ukraine.

Each dot in the video represents $100,000.00 as outlined.

The source for the graphic data is the Center for Strategic and International Studies.  Just hit play:

Visualizing U.S. Aid to Ukraine from Will Geary on Vimeo.

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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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Stellantis is a multinational automaker contracted for the electric version of the Jeep Cherokee.  Citing high costs to produce electric vehicles, on Friday Stellantis announced a decision to idle the Belvedere, Illinois plant starting on Feb. 28, 2023, and notified 1,350 workers of the layoffs.

(Via Fox) […] “This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months and may constitute a job loss under the Worker Adjustment and Retraining Notification (WARN) Act. As a result, WARN notices have been issued to both hourly and salaried employees,” it said. “The company will make every effort to place indefinitely laid off employees in open full-time positions as they become available.”

Today The Daily Mail is reporting that production of the electric Jeep will take place in Mexico.

Hundreds of workers are expected to be laid off when automaker Stellantis closes an assembly plant in northern Illinois early next year, citing the challenge of rising costs of electric vehicle production.

The company, which employs about 1,350 workers at the plant in Belvidere, Illinois, said the action will result in indefinite layoffs and it may not resume operations as it considers other options. 

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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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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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