The U.S. Federal Reserve has published the second quarter 2022 balance sheet of U.S. total household wealth [DATA HERE].

In the second quarter (April, May, June) 2022, the total U.S. household wealth dropped $6.1 trillion, despite a calculated increase in home value of $1.5 trillion.  The majority of the loss is connected to a drop in Corporate Equity (stock market) and household investment in the stock market.

FED “The net worth of households and nonprofit organizations declined $6.1 trillion to $143.8 trillion in the second quarter. The value of stocks on the household balance sheet declined by $7.7 trillion, while the value of real estate increased by $1.5 trillion.”  Keep in mind this is backward looking data, and after a period of decelerating rates of growth, the overall real estate market is now in a period of decline as calculated for the most recent month of July [DATA].

The equity position of homeowners is now considerably less than the equity position when the feds calculated the second quarter household wealth (two months ago).  Part of the issue goes back to what we have been discussing with inflation and specifically energy driven increases in fuel and electricity.

Inflation sucks money out of the economy, making people less wealthy.  Energy inflation sucks money exponentially faster out of each household, potentially making the already working-class poor, much poorer.

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On one hand losing the ability to manufacture aluminum is bad news for any economic activity that requires the use of aluminum.  However, on the other hand, this politically guided ‘new world’ we are going toward doesn’t need aluminum, because you cannot eat it.

Predictably 2023 is going to be the beginning of several ‘Build Back Better’ decades where the ownership of material things disappears.  When your wages are focused on sustaining yourself with housing, food and energy, all of those other purchases become mere indulgences.

Sustainable life in equity with the needs of the planet, means returning to the era when you received an orange or a piece of chocolate as a Christmas gift, and you are thankful. Cars, appliances, phones or other types of luxury durable goods are indulgences which become out of reach for the worker class.  Thus, removing smelters, iron works, factories and other heavy industrial machines only makes sense.

As meager wage earnings are focused on purchases to sustain life, there is little room for indulgences.  As the World Economic Forum has stated, we will own nothing and we will be happy.  Happiness experiences will be provided and the virtual metaverse will fill our needs.

LONDON, Sept 1 (Reuters) – Two more European aluminium smelters are powering down as the region’s energy crisis shows no signs of abating.

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Well, it looks like it’s official now. After several days of sporadic reporting on Russia’s decision to shut down the Nord Stream 1 natural gas pipeline into western Europe, it looks like the valves have been shut down until EU sanctions against Russia are removed.

Strategically the Nord Stream 1 pipeline is the major gas supply route into Germany, Europe’s largest economy. As noted by Reuters, “European gas prices, as measured by the benchmark Dutch TTF October gas contract, rose by as much as 30% on Sept. 5, amid growing fears of a total shutdown of Russian pipeline imports ahead of the European winter.”

Europe was already going into a deep economic recession due to inflation created by pre-existing green energy policy.  The Nord Stream shutdown will make things exponentially worse as energy prices skyrocket.  The Russian owned energy company Gasprom sent out a video that can be best described as psychological warfare.  WATCH:

https://youtu.be/n2b_0gfV_4E

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Comrades, a heatwave hit the Colorado region Tuesday with temperatures exceeding 90 degrees.

Indoor temperatures began climbing, and when formerly free-range residents attempted to adjust their air conditioning, they discovered they were locked out from control in their own home as the power company took over.

(Denver ABC7) – […] when thousands of Xcel customers in Colorado tried adjusting their thermostats Tuesday, they learned they had no control over the temperatures in their own homes.

[…] “I mean, it was 90 out, and it was right during the peak period,” Talarico said. “It was hot.”  That’s when he saw a message on the thermostat stating the temperature was locked due to an “energy emergency.”

[…] Xcel confirmed to Contact Denver7 that 22,000 customers who had signed up for the Colorado AC Rewards program were locked out of their smart thermostats for hours on Tuesday.  (read more)

Comrade Citizens, it is important that we support the needs of the energy collective.  All good thinking citizens put the needs of the state ahead of their selfish desires.

As the national energy emergency now begins to unfold, the officials in charge of energy resource equity remind everyone how critical it is to remain compliant with all ministerial energy objectives.  Compliance is expected from all correct thinking citizens.

As long as you remain compliant, there is no reason for concern.  Do not attempt to adjust your household allocation of energy.  Energy advisors will be made available for enhanced personal education to explain the benefits of our Green New Deal.  Your cooperation is appreciated Comrades.  Please report any non-compliant energy consumers to your local energy enforcement agency.

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Last Saturday’s weekly monologue by Neil Oliver was a tremendous hit, helping to awaken millions of people from multiple nations about the true intent of this new governing system as promoted by policymakers on behalf of corporate interests [SEE HERE].

Earlier today (UK time) GBNews host Mark Steyn had Mr Oliver appear in studio to expand the conversation.  What results from Steyn and Oliver is a brilliant segment outlining the nature of this new governing system.  A system structured on the standard that disconnected policymakers are legislating to the needs of corporations.

When you remove the old “representative democracy” scales from your outlook and replace the lens with an understanding that representation now means representing the needs of multinational interests, almost all of the contradictions reconcile.

From that perspective, the Build Back Better or Green New Deal (climate change) agenda is not about replacing the system of energy production with a green system that duplicates the output. The intent of the new program is to produce less energy and then modify the uses of the now limited resource.  In one of the examples given, 30 million gasoline powered cars are not expected to be replaced by electric vehicles, a personal transportation system of far fewer vehicles is the goal.  WATCH (prompted):

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Looks like we are going to find out exactly what Joe Manchin’s leverage was over Joe Biden, Nancy Pelosi and Chuck Schumer {REMINDER HERE}.

On July 31, 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 claimed he has leverage over Biden, Pelosi and Schumer to ensure a new bill with those priorities is created and advanced.  Manchin further claimed there were “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. (LINK)

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Prior to the 51-50 passage of the massive $700+ billion democrat spending bill, they called it the “inflation reduction act.”  However, after Senate passage they are now calling it the climate change bill.  Funny how that happens.

The bill itself contains absolutely nothing that will lower inflation; in fact, the bill itself will raise supply-side inflation in direct proportion to the energy production it reduces. To offset the contracted revenue caused by a much smaller economy, the Democrats have doubled the IRS tax army that will enforce personal income tax compliance.

The income tax compliance portion of the bill is very significant on two fronts.  First, it literally doubles the size of the IRS, giving them much more power to conduct audits and capture taxes from income earned.  As a review of tax audits has shown, the ordinary U.S. taxpayer is the target of this increase enforcement mechanism, not corporate tax review.

WASHINGTON – […] The bill, a product of 18 months of intense wrangling, passed by a margin of 51 to 50 on Sunday with Vice-President Kamala Harris casting the deciding vote. It was previously blocked by two Democrat senators who shared Republican concerns about its cost.

The Senate bill includes $369bn for climate action, the second largest investment on Green New Deal spending in US history.  The largest bill on climate change was the previous Obama-era American Recovery and Reinvestment Act (AARA), that paid billions of dollars to solar groups (ex. now bankrupt Solyndra) and climate energy companies connected to Democrat donors.

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The glove has been thrown down, as New York Governor Kathy Hochul enters the national contest for political inauthenticity.

Prior to today, California Governor Gavin Newsom was the closest competitor within striking distance of Elizabeth Warren’s “I’m a git me a beer” moment.  However, the assembly of advisors that guide team Hochul have now entered the contest with Hochul’s visual tweet earlier today:

Unfortunately, there are several progressive demerits which may keep Hochul from achieving maximum pander points.  The biggest issue is beef, no longer an acceptable food product amid the left-wing judges.  A tray of sustainable algae cakes would have been better. However, to be fair, there are rumors team Hochul was using ‘cricket burgers‘, which could offset the carbon demerits as presented by grilling.

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McDonalds has announced they are dropping their program testing plant-based meats because people didn’t like it.

As noted by the Washington Times, “other trials at Panda Express and Yum! Brands (KFC, Taco Bell, and Pizza Hut) have also ended without a subsequent product launch. Beyond Meat products at Dunkin’, Hardee’s, and A&W have been discontinued after launching.”

Apparently, American consumers do not want to eat fake meat; at least not fake meat made from plants.

Next up….  Bug meat.

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The good news is that gasoline prices have dropped in the past several weeks to an average of $4.13/gal.  However, the bad news is that most of the drop in price is related to gasoline demand dropping to the same level as July 2020 during the pandemic lockdown phase.

Obviously, $4.13/gal is still a very high price for gasoline, and that is leading to fewer people purchasing gasoline.

(Via Fox) – […] New data from the Energy Information Administration (EIA) shows that gas demand dropped from 9.25 million barrels per day to 8.54 million per day last week. That’s 1.24 million barrels per day lower than last year and “in line with demand at the end of July 2020,” when there were widespread virus-related restrictions and fewer people were hitting the road, according to AAA. 

The latest demand figures bolster a recent AAA survey that revealed 64% of drivers had changed their driving habits or lifestyle since March to offset the high prices at the pump. (read more)

If you think about the position of the Organization of Petroleum Exporting Countries (OPEC or OPEC+), it makes sense for them to recognize the intentions of the western leaders to shrink the western industrial economies and respond accordingly.

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