British Prime Minister Boris Johnson resigned.  Days later, former Japanese Prime Minister Shinzo Abe was assassinated. A few days passed and both the President and Prime Minister of Sri Lanka, resigned and fled the country.  Today, with their ruling governments in a state of turmoil, Estonian Prime Minister Kaja Kallas and Italian Prime Minister Mario Draghi have both tendered their resignations.

The collapse of each of these national leaders is not necessarily connected; however, the global political system is reverberating with tremors directly connected to the post-pandemic economic turmoil.  It would be naïve not to see these governing issues as consequences.  The legitimacy of the governing class is slipping; perhaps it would be fair to say, some have ‘lost’ their legitimacy altogether.

Estonia is part of the EU and a member of NATO:

HELSINKI — Estonia’s president on Thursday asked Prime Minister Kaja Kallas to form a new government after she tendered the resignation of her one-party minority Cabinet, ending a more than month-long political stalemate in the Baltic nation.

President Alar Karis said in a tweet after meeting with Kallas that “I signed the resignation request of Prime Minister @kajakallas but also asked her to form a new government which could start working quickly and deal with all important issues of Estonian life.”

Estonia’s government crisis culminated in early June as Kallas, leader of the ruling center-right Reform Party, kicked out the left-leaning Center Party from the two-party coalition. The parties had substantial differences over spending and welfare policies amid increasing Estonian household costs because of high inflation. (more)

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CNBC is the Biden defense team for media broadcasts of anything related to the economy.  As a result, you know things are bad when CNBC broadcasts that Joe Biden’s economy has the highest level of dissatisfaction in the history of their surveys.

Steve Liesman was given the task again to share the horrible results. WATCH:

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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 June price data [Available Here] showing another 11.3% increase year-over-year in Final Demand products at the wholesale level.

Overall, the wholesale inflation rate is being driven by energy prices.  The June calculation shows exactly that problem with energy prices embedded in goods driving 10% of the price increase.  However, there is some good news in the short-term for July and August, as the intermediate and raw material costs are leveling off temporarily.  Unfortunately, that raw material price plateau is almost certainly the result of a drop in demand.

CTH has modified Table-A and Table-B to take out the noise.

The June inflation rate for final demand goods (2.4%) is driven mostly by higher energy prices (10%).  Energy costs are passed along through every stage of the supply chain contributing to an overall wholesale price increase of 2.4% in June, 11.3% year-over-year.

Notice the slight drop in final demand services; that is important.  What we are seeing is a contraction in the service economy overall, as the service sector -which includes restaurants- cannot pass along the scale of energy price increase to customers. People are changing their spending habits – service demand overall is dropping.

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Officials in the state of Texas are worried the emergency measures taken Wednesday to avoid blackouts may not be enough.  The utility operators urgently need the wind to start operating the windmills or things might get worse.  Reuters News has more:

(Reuters) – Texas’s power grid operator on Wednesday took emergency measures to avoid rolling blackouts as soaring electricity demand threatened to outpace available supplies amid a stifling heatwave.

The Electric Reliability Council of Texas (ERCOT), which operates the grid that serves more than 26 million customers, initiated a rarely used emergency program that is triggered when supplies fall below a critical safety margin.

Earlier, ERCOT had urged residents to cut power use during the hottest hours of the day and warned of a risk for rolling blackouts. Residents were asked to turn up thermostats, defer the use of high-power appliances and turn off swimming pool pumps.

The emergency notice came after ERCOT began paying suppliers an average of $5,000 per magawatt hour to keep generators running. That price is the highest the grid operator pays.  “They were pulling a lot of levers to avoid going into emergency operations and rolling blackouts,” said Doug Lewin, president of consultants Stoic Energy LLC. (read more)

Call me Captain Obvious, but in addition to the population migration, it looks like Texas imported California’s energy policies.  The sustainable energy isn’t sustainable.  However, on a positive note, their state ESG score is improving.

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Gasoline in Mexico is $3.12/gal.  Gasoline in the United States is $4.78/gal

The media did not give this much attention; however, Mexican President Andres Manuel Lopez-Obrador thoroughly, albeit diplomatically, dressed down Joe Biden over his economic and energy policy during a Tuesday visit to the White House.

You might remember that together with a host of south and central American leaders, Mexican President Lopez-Obrador refused to attend Joe Biden’s Latin-America summit last month {Go Deep}.  With that in mind Obrador’s media remarks in the oval office are quite remarkable in their pointedness.

The video and audio are tenuous, and the delay for interpretation makes following the flow of AMLO’s comments a little challenging.  However, if you read the transcript you can clearly see how AMLO is diplomatically undressing Biden over the economic issue of U.S. energy policy.  It would appear that AMLO is not part of the great western reset and has no intention on inflicting the pain that is deliberately being created by other western leaders.  [Video at 23:30, Transcript Below] WATCH:

Now keep in mind that socially AMLO is a soft-socialist (immigration).  However, he is also a strong economic nationalist who has previously expressed a strong dislike for the influence of multinational corporations in Mexico.  AMLO is not a World Economic Forum acolyte.  AMLO is on team BRICS.

In these remarks, AMLO is very pointedly telling Joe Biden that his U.S. energy policy is seriously flawed.  It is really quite remarkable.

AMLO tells Biden that Mexico will continue investing in expanded refining of gasoline, and he is willing to sell that gasoline to American companies because Joe Biden will not issue permits to expand gasoline refining capacity in the United States.  Additionally, AMLO affirms his position on further oil development in Mexico and then, here comes the kicker,…. offers to expand electricity sales to the United States, including supplying Texas with electricity because both the Biden administration and Texas are not developing their own energy resources.

AMLO is telling Biden that Mexico will increase energy subsidies to the United States if Biden asks him to.  Think about that.

[Transcript] – PRESIDENT LÓPEZ OBRADOR:  (As interpreted.)  Yes, I fully coincide with what you have proposed, President Biden.  And I could summarize everything we’ve been saying in five basic items of cooperation.

Number one, since the energy crisis started, Mexico has used 72 percent of its crude and fuel oil exports to United States refineries — 800,000 barrels a day.

Therefore, we decided that while we’re waiting for prices of gasoline to go down in the United States — and I hope that Congress approves or passes your proposal, Mr. President —

PRESIDENT BIDEN:  It has gone down for 30 days in a row.  (Laughs.)

PRESIDENT LÓPEZ OBRADOR:  (As interpreted.)  — of lowering — lowering prices, yes.  That’s it.

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Democrats are historically known for the optics of their politics.  With that in mind, is it coincidental that California Governor Gavin Newsom, one of the leading people that leftists want to see run in 2024, shows up to tour the White House the day after Joe Biden leaves town?

Considering the recent article from the New York Times outlining how most democrats do not want to see Joe Biden run for reelection, the timing seems rather conspicuous. {Direct Rumble Link} WATCH:

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Gavin Newsom is turning California into Somalia, so it would make sense for him to be the next one in line to continue the chaos.

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The professionally furrowed brows are forced to admit high prices remain problematic for the proles while retaining the sympathetic pretense.  WATCH:

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Comrade rebels, when things get spicy, I’ve got dibbs on his swimming pool.

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Folks, the Build Back Better western alliance are fully vested in the pretending game.  It is just one big insufferable game of pretending, and the citizens of the western government powers, You and Me, are the victims.

Seriously, it’s stunning, yet oddly not surprising, that the same multinational forces who created the global inflation crisis as a result of following the World Economic Forum spending agenda, are now claiming the global economy is simply too hot, too successful, there is just too much demand, and that justifies their raising of interest rates:

OTTAWA, July 13 (Reuters)– The Bank of Canada surprised on Wednesday with a full-percentage-point increase to its policy rate, a super-sized hike last seen in 1998, citing “higher and more persistent” inflation and the increased risk of those price gains becoming entrenched.

The central bank, in a regular rate decision, raised its policy rate to 2.5% from 1.5%, and said more hikes would be needed. The move was more forceful than the 75-basis point increase economists and money markets had forecast.

….”With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates,” the bank said. [LINK]

This is the actual justification from the Bank of Canada.

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The Bureau of Labor Statistics (BLS) has released the June Consumer Price Index (CPI) [DATA HERE] showing yet another “surprising” increase in overall inflation.  For the month of June overall inflation increased 1.3% bringing the annual rate of inflation to 9.1% as calculated.

Economists and financial pundits are “shocked”, “surprised” and the proverbial “unexpected” is running amok again amid the typeset.  The reality of Joe Biden energy policy being the origin of our current inflation crisis is being avoided at all costs by the pretenders.  The federal reserve raising interest rates can only impact the demand side, but it’s the supply side (total energy policy) creating the problem.  Table-A shows the overview.

(CNBC) – […] The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% from a year ago, above the 8.8% Dow Jones estimate. That marked the fastest pace for inflation going back to November 1981.

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During an extensive opening monologue on Tuesday evening, Fox News host Tucker Carlson walked through the origin of the modern American push for a transformation in the U.S. energy system; as outlined in the Green New Deal advocacy of Alexandria Ocasio-Cortez, and how Joe Biden is implementing the agenda by executive fiat.

The Green New Deal is domestically to the U.S. as the Build Back Better agenda is to the rest of the western nations who follow the instructions from the World Economic Forum. Collectively the economies of western government are starting to collapse as the underlying energy policies (climate change) are being implemented.

Carlson walks through several examples of countries who have tried and failed to switch from oil, gas and coal to the “green renewable” energy programs. Everything from farming to home heating is now under attack by the governmental energy policies of western nations.  Civil society is starting to collapse in according to the schedule of the nations who have tried to transition.  Perhaps the worst part about it, is that western politicians -like Joe Biden- do not care how much damage is done, they are doing it anyway. WATCH:

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Something has to change, and soon.  As a nation we are going to self-destruct if we do not stop this mad effort to use windmills and solar energy as alternative power sources to oil, coal and natural gas.  Already there are signs that states like Texas are bordering on an energy crisis because there is not enough wind to power their windmills.

From the complete restructuring of farming under the guise of climate change (the intentional shift to eating bugs and lab-grown meat), to the complete collapse of stable energy as a result of chasing climate change goals, we are fast approaching the point of no easy return.

We are not going to like the civil unrest and national instability that comes along with public desperation.

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