The moves are so predictable… {See Here}… well, it would be funny if the consequences were not so severe.

With Prime Minister Liz Truss announcing her resignation there was considerable discussion of former PM Boris Johnson returning to run for the job.  However, as an outcome of his conversations with other “conservatives” in British politics, Johnson has withdrawn his name.  This sets up… wait for it…. the World Economic Forum’s groomed U.K. climate change “conservative” to take the job.  This stuff is so predictable, it’s beyond funny.

(Via CBS) – Former British Prime Minister Boris Johnson said in a statement Sunday that he would not seek the leadership of the Conservative Party, leaving former Treasury chief Rishi Sunak as the frontrunner to take over after Liz Truss hastily announced her exit last week, after just 45 days at the helm. (read more)

Prime Minister Rishi Sunak together with King Charles III….  What could possibly go wrong?  LOL

Sometimes people make fun of me for cementing my views in the reality of a big picture perspective.  I don’t care.  It’s not a conspiracy theory to see how the alignment of western leadership interests are shaped by the control of the people and institutions who manipulate the illusion of choice.

Liz Truss was dispatched because she dared, in the smallest way, to accept the reality of what created the ‘Build Back Better‘ U.K. economic crisis.  She was always going to be replaced by someone who was willing and able to retain their fullest devotion to the grand pretense.  That’s where Rishi Sunak steps in.  Please watch the video below, you’ll see:

(more…)

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.

(more…)

Last week we discussed the announcement of a $24.6 billion merger deal between Kroger and Albertsons supermarkets {Go Deep}.  The majority stockholders in both companies are institutional investment groups, Blackrock, Vanguard and Cerberus.

The merger would consolidate the second and third largest food retailers in the U.S. and would certainly dilute the competitive dynamic amid the supermarket industry.  Concern over price controls and decreased competition has now arrived on the desks of DC legislators who are reviewing the deal.

(Reuters) – […] U.S. Democratic Senator Amy Klobuchar and Republican Senator Mike Lee were quick to say that they would hold a hearing to discuss the merger. A European interloper could make deal plans even harder.

Frans Muller, Chief Executive of Stop & Shop owner Ahold Delhaize (AD.AS), has made no secret of his desire to consolidate U.S. grocers. The Netherlands-based firm is already the fourth largest grocery chain. If it managed to cobble together a better offer than Kroger’s bid for Albertsons, it would become the second largest supermarket. Plane spotters tracked two Albertsons jets next to Ahold Delhaize’s U.S. base in Massachusetts in early August. Ahold declined to comment.

(more…)

Elevate far enough and you return to that same place where the international finance and banking system is making decisions on politics.  The western alliance is ‘all-in‘ on the goal of using climate change as the entry point to the carbon trading system.  No one is going to be allowed to challenge this agenda.

British Prime Minister Liz Truss has resigned after only 44 days in office, driven mostly by the financial system reaction to her proposal that taxes should be lowered in order to stimulate the economy.  In the big picture, the years of slowly advancing progressive politics in the U.K. has culminated in a political system that is only manageable by a leader who retains a globalist financial outlook and a climate change policy framework.

Prime Minister Truss’s economic agenda, lower taxes – stimulate growth, in combination with an emergency effort to quickly develop oil, coal and natural gas exploitation (fracking etc.) in order to avoid the escalating European energy crisis, was just too much and too radical.  The financial markets responded negatively, the World Economic Forum (WEF)was unhappy, and western alliance leaders were critical, including Joe Biden:

Biden called Prime Minster Truss’s proposed tax cuts “a mistake” earlier this week. Biden said he “wasn’t the only one” who thought as much, indicating he had talked to other western alliance leaders who thought the same.

“I wasn’t the only one that thought it was a mistake. I think that the idea of cutting taxes on the super-wealthy at a time when … I disagree with the policy, but it’s up to Britain to make that judgment, not me,” Biden said.  With domestic opposition and international pressure, it became clear that Liz Truss was going to collapse.  She did.

.

(Daily Mail) – British Prime Minister Liz Truss resigned today after just 44 days in office, sending the country’s parliament into chaos and making it the laughing stock of the world.

Truss only took over from former leader Boris Johnson on September 6 after winning an internal Conservative Party leadership contest. She quickly lost the faith of the party to such an extent that she was deemed unfit to lead last night in a wave of no confidence letters from colleagues.

(more…)

New England consists of six states in the US Northeast, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.  The states have been warned by regional ISO electricity providers for several years about their vulnerability if the winter weather is harsh and there is a significant increase in demand for home heating.  Those warnings are now multiplied by the massive price increases for natural gas.

Keep in mind as all these natural gas and LNG issues surface, the U.S. has been exporting natural gas to Europe as part of the Biden effort to subsidize the NATO effort against Russia.  Prices for natural gas have skyrocketed, and now shortages of the fuel source for energy production may create even bigger problems for New England.

[Via Zero Hedge] – […] The region’s power mix changes have left it increasingly reliant on international NatGas spot markets. State governors have asked US Energy Secretary Jennifer Graholm to waive the Jones Act and allow foreign-owned tankers to ship LNG from the US Gulf region. 

All of this has led to New England residents facing some of the highest electricity bills in years. Heating season is already underway. 

(more…)

South African President Cyril Ramaphosa held a two-day summit with Saudi Arabia on mostly economic matters.

At the conclusion of the summit, he confirmed the intent of Saudi Arabia to join the BRICS economic coalition, which should not come as a surprise given the previous statements by Saudi leader and Crown Prince Mohamed Bin Salman (MbS).

(MSM) Ramaphosa confirms Saudi Arabia wants to join Brics family.  This was revealed by President Cyril Ramaphosa during his two-day state visit to the kingdom on Sunday.

“The Crown Prince (prime minister Mohammad bin Salman bin Abdulaziz al Saud) did express Saudi Arabia’s desire to be part of Brics and they are not the only country,” said Ramaphosa. He confirmed this on Sunday during an engagement with the media.

Brics held its first summit in 2009, with SA joining the following year. The bloc has generally been seen as an alternative to the dominance of the western economies.

“We did say that Brics having a summit next year under the chairship of South Africa in SA and the matter is going to be under consideration.

“A number of countries are making approaches to Brics members, and we have given them the same answer that it will be discussed by the Brics partners and thereafter a decision will be made.” (read more)

Since the outset of the Western Alliance sanctions against Russia, we have been predicting an increased geopolitical influence from the BRICS team.  A global financial and economic cleaving is underway created by the western nations chasing ideological climate change energy policy, while the rest of the world remains pragmatic toward oil, coal and natural gas as energy resources.

(more…)

In this brief segment on fall harvest inflation, NBC notes consumer prices for food stuffs continue increasing regardless of the economic action by the Biden administration. The reason is very simple and is outlined within the segment by Jacob Goebbert, the Goebbert’s farm general manager.  WATCH:

.

The current inflation is embedded in the cost of products, because it’s a supply side issue.

Financial “experts” can shout all day long about the fiscal policy (spending) being the origin of inflation (ie. demand side), they’re wrong.  Our current inflation cycle, most notably evident within massive increases in food prices, is a supply side issue created by the increased energy costs.  Full stop.  It’s a Biden policy outcome.

(more…)

Joe Biden’s economic and energy policies have resulted in another record matching former President Jimmy Carter.  The Social Security Administration (SSA) has announced an inflation driven increase in SAA benefits of 8.7% beginning in January 2023.  This is the largest cost of living adjustment in 40 years.

(Social Security Administration) – Approximately 70 million Americans will see a 8.7% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, Social Security benefits will increase by more than $140 per month starting in January.

Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W). The CPI-W rises when inflation increases, leading to a higher cost-of-living. This change means prices for goods and services, on average, are higher. The cost-of-living adjustment (COLA) helps to offset these costs.

(more…)

The Bureau of Labor and Statistics released the September Consumer Price Index (CPI) today [DATA HERE].  The financial and business media call the continued rise of consumer inflation “unexpected,” however, the results are not a surprise to those who are not pretending.

This CNBC headline highlights the economic pretense still entrenched: “Inflation increased 0.4% in September, more than expected despite rate hikes.”  Those who are not pretending fully understand the economic dynamic, but you will not find reality expressed by the mainstream media.

FED rate hikes can only impact the demand side of the inflation issue. U.S (and global) inflation is NOT the result of excess demand. It has not been driven by demand for over a year.  The root cause of inflation is on the supply side. That root is grounded in the energy policy making everything entering the marketplace more expensive.

The historic rise in energy prices; the result of Joe Biden’s specific energy policy to limit oil, gas and coal as energy resources; are what have driven inflation throughout the economy.  The monetary policy (Fed policy) continues to pretend this dynamic does not exist.  The FED is trying to support the political policy, but the bloom is off the ruse.

Overall inflation increased 0.4% in September, leading to a result of 8.2% year over year.  Food and energy prices continue driving inflation, additionally core inflation (everything except food and energy) continues to be driven by the originating issue of extreme energy costs.

Everything costs more because energy costs more.  That is the reality of this inflation issue.

(more…)

The “Producer Price Index” (PPI) is essentially the tracking of wholesale prices at three stages: Origination (commodity), Intermediate (processing), and then Final (to wholesale). Today, the Bureau of Labor and Statistics (BLS) released September price data [Available Here] showing another 8.5% increase year-over-year in Final Demand products at the wholesale level.  However, that’s not the bad news in this data.

While the overall September PPI was higher than expected at 0.4%, the Final Demand Producer Price for food products in September was a whopping 1.2% (14.4% annualized).

The BLS notes the driver by saying, “a major factor in the September increase in prices for final demand goods was a 15.7-percent advance in the index for fresh and dry vegetables. Prices for diesel fuel, residential natural gas, chicken eggs, home heating oil, and pork also moved higher.”

That’s a 15.7% increase in price, in one month, for fresh and dry vegetables.  Annualized that’s a rate of price increase of 188.4% for vegetables.   Remember the warning about farm costs (energy, fertilizer, fuel) driving field to fork inflation at harvest?  This is the leading edge of that third wave of food price increases.

I have modified BLS Table-2 to focus specifically on food costs.  The data is on left.

You will note that ‘row crops’ are the big drivers along with grain and seed products.  This is exactly as we predicted it would be because those specific farming costs are the ones with greatest increase from energy, fuel, fertilizer, weed and insect control, and diesel costs.

All of those higher costs have been growing in the fields and will now surface at harvest.   The higher farm costs transfer from the field to the fork via the food supply chain.  This is only the leading edge of the price increase.

In October 2021 we first warned of the food price increases coming in distinct waves.  The first was Jan, Feb and March 2022.   The second wave was May through July 2022.  This third wave will be bigger than the first two and starts arriving this month, October 2022.

People laughed at me when I said in late 2022 eggs were going to reach .50¢ EACH ($6/doz).

Well, in September the price of fresh eggs jumped 16.7% in a single month.  That’s an annualized rate of price increase for eggs over 200%.

(more…)