If you watch anything today, this is it.  AP Journalist Matt Lee has been around for a long time. He’s the consistent person in the State Department briefing room who understands the deep state institutional games, and he knows how to spot narrative engineering.

Earlier today State Department Spokesman Ned Price said, “The United States has information that Russia is planning to stage fabricated attacks by Ukrainian military or intelligence forces as a pretext for a further invasion of Ukraine.”

Journalist Matt Lee then asked Ned Price what the declassified evidence was that the state dept was referring to.  Price responded that he just gave it to the audience; meaning his word was the evidence.  Matt Lee calls bullshit on Price, and things got really interesting. WATCH:

Folks, the intelligence state, the Fourth Branch of Government, is making it all up.  Everything about this Russian looming attack narrative has been manufactured out of whole cloth by the Intelligence Community and Biden administration.

The statements and position by Ned Price are transparently absurd.  Ridiculously so.  Matt Lee calling the bluff on the U.S. State Department, and comparing them to Alex Jones conspiracy theorists, is peak insanity.  No one trusts the U.S. government institutions any longer.  Everyone knows the “intelligence state” makes stuff up to steer and control events.  It’s a joke.

Russia is likely not doing anything, likely doesn’t even have a threatening posture, but yet, inside the DC bubble we are on the precipice of a thermonuclear war. We have passed through the looking glass, and now we are in bizarro world.

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For those who have been following closely, the economic data releases over the past several months have been almost impossible to reconcile from a Main Street perspective.  Additionally, the scale of inflation is skewing everything that stems from dollar valuation.

CTH is certain the fourth quarter GDP statistic (+6.9%) is useless and was an outcome of several flawed metrics: (1) the import data was misrepresented and not accurately deducted (supply chain issue); (2) the value of building inventories was over calculated as an outcome of inflation; and (3) the value of all economic activity was subsequently skewed because the economic outputs (goods and services) were recorded at higher prices.

It has been our estimation that Main Street economic activity was substantially less than the data discussed by financial pundits.

Our review also sees the employment situation on Main Street as considerably less optimistic than claimed.  Bolstering that point, in a very weird and structured preview from the White House, spokesperson Jen Psaki made an odd statement today.  WATCH (14:35 prompted):

Psaki is prepositioning a narrative that employment data in January will be lower than expectations, perhaps considerably lower, as a result of “workers calling out sick” from COVID, ie. the omicron variant, during the time when employment polling was conducted.  That is a very unusual proactive narrative.

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The installed regime of Joe Biden is a joke to the world, and the only people continuing their efforts to prop up the Potemkin village are the irrelevant U.S. media.

Despite their earnest efforts, even the George Stephanopolouses of the world cannot avoid the responses from Americans.  The latest ABC/IPSOS poll [Raw Data Here], which is again a highly skewed effort, shows just how out of touch the policies of the regime are to the domestic audience.

When asked about Biden’s handling of immigration, 64% disapprove and 34% approve.  The open border policy doesn’t have support, even amid the constituencies the regime claims to control.

When asked about Biden’s handling of the economy, 56% disapprove, 40% approve.  Massive inflation created by chasing the unicorn of climate change is hitting everyone hard.  Gas prices, home heating costs, energy costs overall and skyrocketing food inflation prices are a reality that no amount of spin from the stenographers can hide.

When asked about inflation specifically, 69% disapprove and only 29% approve.  Policies have consequences.  As noted by ABC, “Troublingly for the White House, only 1% of Americans view the state of the nation’s economy as “excellent,” and only 23% say it’s “good.” Three out of four Americans said the state of the economy was “not so good / poor.”

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Hopefully last year’s warning gave all enough time: …”By the time we get to Superbowl Sunday, the price of ¹chicken wings is going to bring sticker shock to those who have not prepared.” (link)

For those doing the math, that’s a 51.4% price increase in a year.

(Prior article)

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Earlier this evening Fox News host Tucker Carlson interviewed Canadian Freedom Convoy spokesperson Benjamin Dichter about the motives, purposes and intents of the trucker protest. {Direct Rumble Link}

During the interview Mr. Dichter noted how the vaccination passport was yet one more step in the ability of the government to track, monitor, approve and possibly block free movement.  Additionally, the trucker gave a real-world example of that issue recently surfacing when he crossed the border and the crossing guard told him his cell phone location data and his vaccinated status was already tied into the border checkpoint system.

Mr. Dichter was surprised at how quickly the vaccination passport tracking system was triggered and noted the U.S. border checkpoints likely contain the same type of privacy infringements.  WATCH:

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Last year, when CTH discussed the original Kraft-Heinz wholesale notification for January 2022, we warned it was only the first round.  The reason for waves of price increases is specifically, because each of the processed food categories is impacted differently depending on the amount of processing involved.  Each category is different.

This understanding is why we warned everyone in October of last year to make as much preparation as possible for waves of food inflation.  The original notification for contracted terms in 30, 60 and 90 days was +20%.  Meaning this month, on those group and sectors, prices to retailers went up by 20%, and you are seeing that in the supermarket now.

For the next wave, Kraft-Heinz is telling wholesalers the fulfillment shipments arriving in March will be up to +30% on the next categories.  Oscar Mayer proteins will be the biggest increase at the top end (+30%), Maxwell House coffee on the lower end (+5-10%) and the juice and drink category around +20%.  [A $5 beverage pack will cost $6 in a few short weeks.]

The processing sector is still dealing with cumulative cost increases.  The fulfillment terms are still catching up with the increased costs.  These announcements are ON TOP OF the current price increases we are feeling.  We are entering hyper-inflation.

If you look at the notification timing from Kraft foods, January 24th, you will see the categories we predicted to come next are the exact categories being outlined in this wave.

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We have been tracking the issue of U.S. port congestion, supply chain crises and the White House supply chain initiatives since they first surfaced last fall.  We finally have full data to review, and what we see is very disturbing.  Not only was the White House supply chain effort a fraud, but they also manipulated the port system to give a false impression of the U.S. economy.

Let’s start with the latest issue.

For several weeks, we have been trying to figure out why the Port of Los Angeles (POLA), our nation’s busiest and most valuable port, had delayed their reporting for December.

Normally they update their container statistics and port efficiency/productivity results between the 10th and 15th of the month.  However, this month the data was delayed by several weeks.

When we finally grew frustrated and asked the POLA about this ridiculous delay, they responded January 25th, saying: “Good morning. Data from one vessel has delayed final numbers. We plan on releasing numbers today or tomorrow.”

The POLA justification and timing seemed odd, and their explanation seemed fishy.  One container ship manages to delay the entire POLA result?  However, this morning after checking and seeing still no result we realized what was going on.

The Bureau of Economic Analysis released the U.S. 4th Quarter GDP result (link).  The value of imported goods is a deduction to the U.S. GDP.  If the biggest port in the U.S. holds back their import cargo data, the resulting information cannot be deducted from the GDP.  Missing data gives an artificial outlook for the GDP.  Put another way, the 4th quarter GDP is inflated by the missing deduction.

From the position of the Biden administration, there is a perverse economic motive to keep all those import cargo ships from arriving.

Would the Port of Los Angeles intentionally hold back data in order to help the White House give a false and more optimistic impression of the U.S. economy?  At first blush it might seem a stretch, but then – as if on cue – a few hours after the BEA made the public release, suddenly the Port of Los Angeles released their December data.  In politics timing is never coincidental.

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The Bureau of Economic Analysis released the Fourth Quarter GDP (Q4) data today [DATA HERE], and the White House will likely spin a victory message.  However, the real economic picture is covered by the continued storm of inflation.

Gross Domestic Product (GDP) is the dollar value of all goods and services produced in the economy, minus the dollar value of goods and services we import.  The percentages discussed are percentages of change over time.

The fourth quarter result was an increase of 6.9 percent over the prior quarter.

The total U.S. economy is now estimated around $23 trillion annually. [Tables pdf Here]

What the GDP doesn’t show is the diminished purchasing value of the dollar and/or the actual rate of inflation which towers over the valuation.  With goods and services costing much more, the estimated value of those goods and services (the amount of money spent on them) increases.

Because we are in a severe inflationary cycle, the resulting evaluations of the economy are skewed.  The BEA attempts to remove the inflationary impact of their evaluations, but they do so by using a 5.5% inflationary rate, which is a much lower inflation estimate than actually exists.

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A Gallup news survey [DATA HERE] indicates that eight out of ten Americans expect higher prices and continued rising inflation, as the working class can see the through the smoke and mirrors of the Biden economy.

Overall, there are multiple datapoints that show the economic quagmire that is taking place right now.  Gasoline continues to rise in price, as oil costs continue to skyrocket as an outcome of Biden energy policy.  Food store prices have only just begun to show the higher prices that are built into the replenishment process.

Newly arriving goods overall are at a much higher price that previous inventory.  The 30, 60 and 90-day terms of purchase order fulfillment are now reflecting the cumulative cost increases at every stage in the supply chain.  Inbound prices to retail are still climbing. This is an economic quagmire created by inflation that cannot be avoided.

Fuel, food, home energy and home prices overall are rising.  As a result, durable good spending has contracted.  CTH has pointed out this dynamic for almost five months; however, the actual data is difficult to extract, because the scale of government spending in 2021 has clouded all of the economic indicators.

The official government inflation statistics at 7 to 9% do not accurately reflect the real inflation being felt by consumers, which is in the 25 to 40 percent range for highly consumable products.  If you look around your local community, it is not difficult to see that working class Americans have modified all of their spending priorities to deal with the food, energy and housing inflation that cannot be avoided.

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Multiple media reports now affirming that Supreme Court Justice Stephen Breyer will retire at the end of the current court term [ABC Report – NBC Report] setting up the final step to elevate DC Appeals Court Judge Kentanji Brown Jackson to the Supreme Court.

This is exactly what was planned from the appointment of Merrick Garland to U.S. Attorney General. [GO DEEP] As CTH outlined in January 2021, the series of moves was/is predictable.  The Obama crew behind Biden have been following a predictable roadmap. Four sequential steps.

In March 2021, Merrick Garland was confirmed Attorney General to open his seat in the DC Appeals Court for Kentanji Brown Jackson.  KBJ’s appointment to that specific court needed Senate confirmation.  In June 2021, KBJ was confirmed [GO DEEP] with a vote of 53-47.  Susan Collins, Lisa Murkowski and Lindsey Graham voted with Democrats to support KBJ to the circuit court.  Now Breyer steps down and KBJ is nominated to replace him.

“U.S. Appeals Court Judge Ketanji Brown Jackson, a former Breyer clerk, public defender and Biden appointee who won three Senate Republican votes in confirmation, is considered a top contender for nomination” ~ABC

As we predicted in March 2021, “this is how they roll”.  With Obama’s crew you always have to watch the other hand – the third and fourth moves.

MARCH 2021 – Judge Garland was an important judge on the important DC Circuit Court.  Garland’s replacement will be a senate confirmed seat for that court.

Once that replacement is Senate confirmed, we anticipate (almost to a certainty) that replacement will be quickly elevated to a Supreme Court nomination to replace Justice Stephen Breyer, now 82-years-old.  The Senate will have no political ammunition to block or not confirm the radical SCOTUS pick, because she will have been confirmed a few months before. It’s a smart play.

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