During our previous discussion on historic, predictable and purposeful food inflation, on August 13th CTH noted “BigAg has likely already made deals for increases in government welfare payments (EBT and Foodstamps, WIC etc.). BigAg lobbies congress for higher reimbursement rates so they can raise the prices of food and export domestic product to other nations. Food assistance payments increase, and BigAg benefits. In essence, BigAg takes the fed food subsidies and fattens their profit margin. Then, they payback the politicians. It’s a circle of money.“….

If you know how the game is rigged, it’s actually easy to predict the background.  Today, exactly on cue, several media outlets are now reporting that Joe Biden is going to increase the amount of food stamp assistance by 25% per recipient, and expand the program.

New York Times – WASHINGTON — The Biden administration has revised the nutrition standards of the food stamp program and prompted the largest permanent increase to benefits in the program’s history, a move that will give poor people more power to fill their grocery carts but add billions of dollars to the cost of a program that feeds one in eight Americans.

Under rules to be announced on Monday and put in place in October, average benefits will rise more than 25 percent from prepandemic levels. All 42 million people in the program will receive additional aid. The move does not require congressional approval, and unlike the large pandemic-era expansions, which are starting to expire, the changes are intended to last. (read more)

This announcement is actually revealing in more ways than just the predictability of it.

♦ First, the 25% permanent increase is an admission by the Biden administration that food price inflation is here to stay.  The massive scale of the increase also highlights the actual reality of how much food prices are rising.   This massive and permanent increase directly undercuts the previous White House and Biden claims that inflation was “temporary”, “transitional” and likely to end soon.

(more…)

As customary, K Street wrote the legislation, that’s why the Senators had to vote cloture to continue debate before the bill was even written.  The U.S. Chamber of Commerce and a host of Wall Street multinationals actually wrote the bill and the UniParty politicians are now tasked with selling it.  That’s the way the process is designed.

President Trump notes the ridiculous nature of the $3.5 trillion spending package, which includes new regulatory mechanisms to track and tax vehicle mileage.  Yes, you will be paying the government for each mile you drive your car.  Republicans and Democrats want this; our opinion doesn’t matter.

DONALD TRUMP – “Joe Biden’s infrastructure bill is a disgrace. If Mitch McConnell was smart, which we’ve seen no evidence of, he would use the debt ceiling card to negotiate a good infrastructure package.

This is a 2,700 page bill that no one could have possibly read—they would have needed to take speed reading courses. It is a gift to the Democrat Party, compliments of Mitch McConnell and some RINOs, who have no idea what they are doing. There is very little on infrastructure in all of those pages. Instead, they track your driving so they can tax you. It is Joe Biden’s form of a gas tax but far bigger, far higher and, mark my words, far worse. They want to track you everywhere you go and watch everything you do!

Joe Biden’s infrastructure bill will be used against the Republican Party in the upcoming elections in 2022 and 2024. It will be very hard for me to endorse anyone foolish enough to vote in favor of this deal.

(more…)

Several people have written to CTH for an economic review of our current status.  Below this post are two primary precursor articles [Primary One and Primary Two] which outline the economic dynamic in play and how we can look forward with accuracy to what is likely to happen.  Despite the deflective talking points by the professional financial pundits this massive spike in inflation is entirely predictable due to Biden economic policy and Biden monetary policy.

Keep in mind the FED has already said in April they would “support inflation” but that’s because while they will not say it openly they know there’s no way to stop it.  The massive inflation is a direct result of the multinational agenda of the Biden administration; it’s a feature not a flaw, and it has nothing whatsoever to do with COVID. Also keep in mind the first group to admit what is to come are banks, specifically Bank of America, because the monetary policy is the cause.

There’s no way around this.  Despite the pundit and financial class selling a counter-narrative, home prices will crash and unemployment will go up.  I know this is directly against the current talking points, but the statistical reality is clear.  CTH was the first place who said two months ago that home sales will plummet, that is starting to happen right now.  There’s no way for it not to happen, the big picture tells us why.

You might remember when President Trump initiated tariffs against China (steel, aluminum and more), Southeast Asia (product specific), Europe (steel, aluminum and direct products), Canada (steel, aluminum, lumber and dairy specifics), the financial pundits screamed at the top of their lungs that consumer prices were going to skyrocket.  They didn’t.  CTH knew they wouldn’t because essentially those trading partners responded in the exact same way the U.S. did decades ago when the import/export dynamic was reversed.

Trump’s massive, and in some instances targeted, import tariffs against China, SE Asia, Canada and the EU not only did not increase prices, the prices of the goods in the U.S. actually dropped.  Trump’s policies led the largest deflation in consumer prices in decades.  At the same time Trump’s domestic economic policies drove employment and  wages higher than any time in the past forty years.  With Trump’s policies we were in an era where job growth was strong, wages were rising and consumer prices were falling… The net result was more disposable income for the middle class, more demand for stuff, and ultimately that’s why the U.S. economy was so strong.

(more…)

We noted last month the inflation issues were not going to get better and indeed they are getting worse.  The Bureau of Labor Statistics (BLS) has released the latest inflation data, and the rate of inflation continues to increase at an alarming rate; now at 5% year over year for all items.

With only six months of JoeBama economic policy hitting so far, the rate of inflation is now four times larger under Biden than it was under Trump policies.

Everything the Biden administration is doing is making things worse, and now we are seeing big drops in real wages as the inflation rate is far beyond wage growth.   Under Biden inflation is massive and wage growth is non-existent.  This is an exact reversal of the Trump-era outcome where inflation was low and wage growth rates were high.

Year-over-year price comparisons for regular unleaded gasoline are now +58.2%.  [Table 7] Stunning increases in fuel. Natural gas is up 13.5%.  The prices of durable goods like furniture are up 9.8% while the prices for washers/dryers have jumped up over 26%.  Used car prices are up 29.7%, while every durable good is showing massive increases (appliances, clothes, furniture, jewelry, etc).  Even televisions are up almost 5%, after years of continually lower prices.

The May increase in energy prices “was the largest 12-month increase since the period ending April 1980”, over forty years ago. Yes, with 28% increases in overall energy prices Biden is mirroring Jimmy Carter in the outcome of his economic policy (this is not accidental).

(more…)

The White House occupant appeared today to deliver remarks on some key issues that are catastrophic to the long-term goals of the leftist administration.

First, let’s be clear; there’s no-way the Chicago control agents would allow the installed occupant to speak on any issue, publicly, that was not a direct and measurable threat to their long-term goals.

The remarks today by Joe Biden are carefully scripted to diffuse political damage that is pending as a direct outcome of the executed policies.

The risks and remarks are in the following order:

(1)  Gas Prices – The JoeBama energy policy is “necessarily” making fuel prices at the pump jump dramatically.  The teleprompter is loaded with disinformation to place the blame for higher gas prices upon a pipeline hack, which JoeBama intentionally points out is a private sector issue – that now needs government intervention as part of his infrastructure program. This nuanced shift is clearly part of the Chicago maneuver toward socialist control of all levels of energy development and distribution.

The political risk is obvious.  Massive increases at the gas pump will hit the middle class extremely hard.  Democrats are to blame for these gas prices and they are worried about the political fallout.  Ergo, JoeBama is told to read his script.

(2) Mass Unemployment  and Terrible Jobs Numbers –  The COVID bailout has created massive incentives for people not to return to work.  It is only not a laziness and comfortable dependency issue, it is also an economic decision.  Low wage workers can make more sitting at home getting unemployment to combine with their COVID bailout money than they can returning to work.

(more…)

Katherine Tai was confirmed by a unanimous senate vote today to become the United States Trade Representative.  The vote was 98-0.  Ambassador Tai has family connections in both Taiwan and China and replaces former USTR Robert Lighthizer.

The doctrine of President Trump was to use trade and economics to achieve diplomatic results on foreign policy and national security issues. It will be interesting to watch what happens now as the Biden Administration returns to using ideological diplomacy as the baseline… then providing economic benefits to support leftist objectives.

The rustbelt was created, and China rose to economic influence, on the political outlook once again in power in the United States.  Ideology comes first, all other things changed, modified and or considered downstream in lesser importance than the ideology.  This was how the alignment of Wall Street, Globalists and Beijing exploited Bush, Clinton-Clinton, Bush-Bush and Obama-Obama terms.  The U.S. middle-class economy suffered greatly, while Wall Street multinationals thrived.

On the positive side there will be pressure from the Bernie Sanders wing to defend American jobs.  However, that faction’s political leadership, like Bernie Sanders himself and AOC, will compromise the long-term interests of the American worker when the opportunity surfaces for personal and familial wealth.  The Sanders types, just like the union leadership, can all be bought for the right price.

Ambassador Tai has not yet made statements about whether she will advocate for steel and aluminum tariff removal, but she is a big supporter of environmental justice as it pertains to trade and economic justice.  The climate and trade issue here specifically is the potential for carbon taxes to be part of JoeBama trade policy.  How?  Well, that might look like the U.S. re-entering the Trans Pacific Partnership with a carbon trading system in place.

(more…)

Representative Marjorie Taylor Greene has rapidly become one of the most ardent supporters of MAGA policy and political perspectives in Washington DC.  She is opposed by all the correct enemies as to reflect how the UniParty politicians consider her a risk to the DC system.

Today MTG appeared on the Steve Bannon podcast to discuss her perspective and experience in Washington DC with Democrats and Republicans.  Ms. Greene notes her experience with the UniParty apparatus, a singular political outlook that surrounds all of the politicians occupying Washington DC.  The Conservative Treehouse has long discussed this exact issue.

MTG succinctly discusses how the Republicans failed to support the MAGA agenda after President Trump was elected; republicans controlled both the House and the Senate chambers yet they did nothing.   MTG is also one of the few voices who understands how DC is a business model, an economic system and industry that is supported by the politicians within it; and she is willing to call them out.  A very rare breed….  WATCH:

CTH often describes the background DC motives with the phrase: “There are Trillions at Stake.”  Expanding on MTG’s explanation of the DC economic business model, below we take another look at what that really means; and how DC politics is not quite based on the ideas that frame many reference points.

(more…)

The $1.9 trillion blue state bailout bill has passed the House of representatives.  No republicans supported the bill in the House or senate. Unfortunately, the outcome as as we anticipated after the 2020 election {Go Deep}: “The Blue Team state bailout comes atop a massive 2020 COVID federal spending package. As with the previous 2009 spending package, it will be gift-wrapped in paper to appear like Main Street is a COVID relief beneficiary… However, just like the 2009 ARRA, there will be no ‘shovel ready jobs‘ saved or created.  It is all a ruse for a transfer of taxpayer wealth.”

The political institutions of the U.S.A. which have protected our constitutional republic for generations are collapsing.  The fourth estate, last line of defense media, has been fully compromised by years of manipulative ideological alignment with the progressive left.

The courts are under assault and federalism is tenuously positioned.  The borders are open and unprotected.  Federal representatives are compromised within a DC system that is self-protecting; they have even erected physical walls, barbed wire and armed troops to protect themselves from We The People.   We are on the cusp of our very own Yellow Vest movement.  The effort to push-back against this overarching system of government control has to get loud and local, very local.

(Via Axios) […] The massive spending package was passed via budget reconciliation, a process that allows the Senate to approve legislation with a simple majority vote, rather than the usual 60-vote threshold.

(more…)

There are a lot of masks dropping this week.  There is a great deal of new sunlight upon the professional and institutional republican politicians that hold office.  There is a great deal of information this week highlighting establishment opposition against the presidency of Donald Trump. It is valuable to understand what lies at the heart of this opposition.

CTH can get down in the weeds of each specific issue to discuss the motives and intents (we will, and do), but the big picture MUST remain at the forefront of understanding. If we lose track of the big picture, the weeds are overwhelming.

…“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than a new system. For the initiator has the enmity of all who would profit by the preservation of the old institution and merely lukewarm defenders in those who gain by the new ones.”

~ Niccolò Machiavelli

♦POTUS Trump was disrupting the global order of things in order to protect and preserve the shrinking interests of the U.S. He was fighting, almost single-handed, at the threshold of the abyss. Our interests, our position, is zero-sum. His DC opposition seeks to repel and retain the status-quo. They want to return to full economic control over the U.S.

In these economic endeavors President Trump was disrupting decades of financial schemes established to use the U.S. as a host for their endeavors. President Trump was confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of the host (USA) ie YOU. There are trillions at stake; it is all about the economics; everything else is chaff and countermeasures.

Familiar faces, perhaps faces you previously thought were decent, are now revealing their alignment with larger entities that are our abusers. In an effort to awaken the victim to the cycle of self-destructive codependent behavior, allow me to cue an audio visual example from March 2018 and U.S. Senator John Thune. WATCH:

(more…)

In this outline we will explain the usefulness of COVID-19 as a weaponized tool to transfer wealth and achieve a global economic reset.  If you have followed the economics of Main Street -vs- Wall Street (Multinationals), you have a baseline to understand these steps.

If you get too granular, missing the larger picture, it is difficult to understand. However, if you stay at the elevated perspective, understanding leads to awakening.  We begin…

In generally approximated terms 2020 has delivered a serious financial blow to Main Street businesses.

The COVID-19 lockdowns and shutdowns have led to business in your local community suffering massive losses of income while simultaneously taking on debt directly from lenders or indirectly from government relief efforts.  Main Street has been hit hard, some analysts estimate 40 to 50 percent of those businesses may not recover.

Conversely, the COVID-19 lockdowns and shutdowns have created a massive income benefit for multinationals, Wall Street corporations and big tech.  Amazon, Walmart and massive tech companies had their highest earnings ever recorded in 2020.

According to most maco-analysis somewhere around forty percent of Main Street economic wealth was lost or suspended in 2020 due to COVID-19.  Simultaneously the multinational firms have seen increases in stock evaluations of forty percent.  These two almost identical numbers are not coincidental.  The billionaire class (multinationals) have gained wealth in an almost identical amount the middle-class (Main Street) lost.

(more…)