We have been waiting for the non-essential durable goods side of the manufacturing sector to start showing evidence of demand side contraction in consumer purchases.  There have been subtle sector-by-sector indicators of consumer spending shifts for several months; however, today we get the direct evidence from Samsung.

Samsung is one of the leading manufacturers of consumer electronics and products that require chips.  For three months the electronics sector has shown background signals that inventory was not moving.  One of the more recent indicators of a demand side contraction was the lack of upward price pressure inside the electronics sector.  Essentially, consumers are not purchasing the current inventory, so prices are actually dropping in this segment.  [SEE TABLE 2, CPI Chart]:

Despite overall inflation of 8.6% within the CPI, deep inside the category indexes you will note that electronic prices are actually dropping.  Televisions -9.5%, Video equipment -4.3%, etc.  Video and audio products overall dropped in price 1.4% for May, and dropped 5.2% year-over-year.

The supply chain in this sector is lengthy. Meaning inventory builds slowly as consumers stop purchasing in the USA.  Retail store inventory turns slow, store inventory climbs, then warehouses inventories climb as stores do not need product. The negative boxcar effect travels back to the manufacturer overseas over the course of several purchase cycles.  Eventually, everyone within the sector is telling the supplier we do not need product.  Then the manufacturer has to quickly slowdown raw material.

Due to lengthy supply chains, including trans-pacific shipments, the process to stop deliveries in this electronic goods sector is around 90-days before the drop in retail sales reaches the manufacturer to stop production.  Here is the announcement from Samsung:

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The White House shares the contents of another phone call between Joe Biden and Ukraine President Volodymyr Zelenskyy today in a media release.  According to the details of the call, a generous Joe Biden has directed another $1 billion in aid to the laundry operation in order to assist Ukraine “families to purchase essential items.”

WHITE HOUSE – “This morning, I spoke with President Zelenskyy to discuss Russia’s brutal and ongoing war against Ukraine.

[…] I informed President Zelenskyy that the United States is providing another $1 billion in security assistance for Ukraine.

[…] We also remain committed to supporting the Ukrainian people whose lives have been ripped apart by this war. Today, I am also announcing an additional $225 million in humanitarian assistance to help people inside Ukraine, including by supplying safe drinking water, critical medical supplies and health care, food, shelter, and cash for families to purchase essential items.” (read more)

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The South Carolina republican club keeps an open primary election so they can coordinate with Democrats on key races.  The larger goal is to retain power.  As planned, democrats in/around Charleston voted to support Club candidate Nancy Mace as part of the power control.   However, at least Tom Rice was eliminated in district 07.

(Via Politico) […] Rep. Tom Rice, one of the 10 House Republicans who voted to impeach the former president, lost his primary to Trump-endorsed state Rep. Russell Fry. It’s the first time this year that a Republican impeachment backer has faced a challenger backed by Trump — and the results were emphatic, with Rice’s party support crashing to just a quarter of the vote. (read more)

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The people who control Joe Biden held a background call today announcing details of the upcoming trip by Joe Biden to the middle-east.   The trip will start in Israel where Biden will meet Israeli leaders and Palestinian Authority leader Abbas.

White House – […] In meetings with Israeli leaders, the President will reaffirm the ironclad U.S. commitment to Israel’s security and new areas of deepening cooperation in technology, climate, commerce, trade, and other sectors.

[…] The President will also visit the West Bank to meet with President Mahmoud Abbas and other Palestinian leaders.  The President, of course, has known Abbas for decades, and he looks forward to reaffirming his lifelong commitment to a two-state solution and to discuss the ways in which we might rekindle a new political horizon that can ensure equal measures of freedom, security, prosperity, and dignity to Israelis and Palestinians alike. 

[…] Following the visits to Israel and the West Bank, the President will fly directly from Israel to Jeddah, Saudi Arabia, where he will participate in a summit of the Gulf Cooperation — GCC+3 — the GCC+3 — so the leaders of Saudi Arabia, Kuwait, Oman, UAE, Bahrain, and Qatar, plus Iraq, Jordan, and Egypt. The President will also hold bilateral meetings with the Saudi hosts and other counterparts. 

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There is one big problem for the people inside the Biden administration executing the Green New Deal energy policy, the massive increases in energy cost including gasoline.

You see, everything is an academic estimate until the actual Green New Deal is transferred from theoretical policy into a set of actions that creates a major disruption in the economy.  As things in society start to collapse; and as people begin to really feel the inflationary consequences of the Biden energy policy in action; suddenly all of those ‘talking points’ about shutting down the fossil fuel industry take on a new meaning.   People didn’t realize the Green New Deal was going to mean $10/doz eggs, $15/gal milk, $20 happy meals at McDonalds, or $150/tank of gasoline…. Now they are paying attention.

For former EPA Administrator Gina McCarthy, the current senior climate and energy policy advisor within the White House, all of these ‘in your face‘ surfacing Green New Deal consequences have become problematic for the Biden administration.  Her proposed solution, however, is rather remarkable.

In this interview discussing the skyrocketing inflation and consequences created by the Green New Deal policies, Gina McCarthy urgently begs all of the social media companies to start removing the content from American people who are giving real world examples of the pain and economic hardship they are feeling.  McCarthy says that if social media do not start to help Joe Biden hide the pain, the climate change agenda might be at risk.  WATCH [11:00 prompted]:

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They might even hold hearings on it….

In his monologue this week Neil Oliver hits the target so perfectly he deserves extra appreciation.  You see, like many – including us, Oliver refuses to just let the two years of COVID madness disappear in the ether as if it didn’t exist, simply because the elites now find the questioning a little too uncomfy.

For two years they shoved their intolerant fingers in our faces, destroyed lives and livelihoods, made ridiculous demands in order to sustain their own fear, threatened our children, destroyed the economy, used COVID as an excuse to destroy families and steal an election, attempted to force us to kneel at the altar of their mask wearing and never-ending vaccine crap… and we’re just supposed to what, forgive them?  Fat chance…. WE NEED a reckoning.  WATCH:

[Transcript] – “The question is this: are we stupid? Or are we just being treated as if we’re stupid? How long will they keep trying to tell us 2+2=5, when so many of us can see that the answer is 4.

Spanish newspaper El Mundo, and other news agencies, reported last week that Jose Maria Fernandez Sousa-Faro, president of European pharmaceuticals giant Pharma Mar was among 2,200 Spanish elites and celebs, investigated by police for allegedly paying thousands of Euros to be injected with a saline solution – salt water – instead of any of the Covid vaccines and so had their names added, falsely, to the National Immunization registry.

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Joe Biden’s repeated use of the phrase “Putin’s price hikes” is intended to shift responsibility for inflation away from his own policy and assign blame to Russia. Biden is essentially pretending that Vladimir Putin has control over White House energy policy, in order to protect his administration from the American people realizing all of the economic pain they feel is being done purposefully.

Putin didn’t price hike anything. The cause of the current spike in global oil prices was created, in the largest part, by the western sanctions against Russia; not the action of Russia itself.

Factually, massive global inflation began in early 2021 as an outcome of Western government spending and monetary policy. The U.S. Federal Reserve, EU and western alliance central bankers created the issue and were always going to face inflation as an outcome of their agreed direction. As the inflation started to become a serious political problem for them, the Ukraine conflict became the excuse, the blanket to hide the real origin of the problem.

Almost every western government leader now deflects responsibility for their inflation by pointing fingers at Vladimir Putin, this is not coincidental.  Just like their agreement to follow each other into the unsustainable spending spiral via “Build Back Better,” the same Western alliance -united members of the World Economic Forum- must now collectively deflect attention away from the consequences of their catastrophic agenda.

The global inflation crisis is, in essence, a direct and immediate outcome from the designs of the ‘The Great Reset.’  It is within this reset where the global cleaving is underway.

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Mohamed El-Erian, Allianz and Gramercy advisor, is one of the least dishonest people amid the Wall Street propaganda crowd.  Although due to peer pressure, he still tends to couch his economic analysis behind the CNBC screen of pretending not to know things.   [On a personal level, I bet this guy is 80% cash right now.]

This interview is generally not that impressive.  However, at the very end of this segment talking about inflation, what El-Erian says about the first 10 days of June is 100% and he’s the first person to say it. But he won’t repeat it.  WATCH (Prompted):

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He’s looking at the same data set we are.  Watch closely when the May Producer Price Index (PPI) is released (origination, intermediate and final demand to wholesalers), we will see how the inflation costs are continuing to accumulate in the supply chain for all goods and leaking over into the vulnerable service sector now.

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It’s worth paying attention to where and when Joe Biden is standing when he makes his ridiculous economic claims today about Russia being the cause of the energy policy from the White House.

Do not let it go unnoticed that it’s June, the last month of the second quarter for economic data.  Do not let it pass your reference that Joe Biden is speaking from the Port of Los Angeles (POLA) as he spins his nonsense about the inflation, he alone is responsible for.  And do not overlook the attendee mentioned in this subtle statement, “And, John, I can’t thank you.  You’re — you’re the real deal.  Anybody — well, I won’t get into — get you in trouble, but thanks for sticking up for me.”

“John” is the White House Port Envoy John D Porcari. A severely partisan former Obama official who was selected by Joe Biden to lead the fraudulent effort to improve supply chains when the White House was under assault in the fall of 2021.  Porcari was the person who designed “operation hide the ships” to give the illusion of port efficiency improvement, and it is almost a certainty that it was Porcari who leveraged his influence with the POLA to hold back the December 2021 import data in order to try and improve the GDP statistics.  {GO DEEP}

A recession is defined as two consecutive quarters with negative GDP growth.  The first quarter of 2022 was -1.5% as detailed by the Bureau of Economic Analysis.  That means if April, May and June 2022 are also negative GDP then we are factually in an economic recession.   That makes this month, June 2022, critical for Joe Biden.  The White House will do anything to avoid that label appearing on their economic policy when the reporting is released at the end of July.

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