I’m not sure what is more blood boiling: that Joe Biden thinks it is okay to mock the American electorate, or that he actually believes the horse crap that comes out of his twisted, stupid brain.

The question was a perfectly well presented inquiry about the Biden administration’s incompetence to put policies in place to streamline the supply chain chaos that he has created.  His response is disconnected, absent of anything even remotely accurate, and entirely disconnected from factual substance.  This guy is a complete and utter failure of staggering and stunning incompetence.  WATCH:

I do not use the word ‘hate‘ lightly.  I have a solid grounding on what that word actually means.  However, the only people I hate worse than the current occupants of the White House, are the complicit DC media stenographers who sit there and giggle as this pontificating pustule of an idiot spouts nonsense. They clap and comply as if this is the professional or normal state of a functioning government.

COVID didn’t do squat to disrupt supply chains, impact prices or create massive shortages and inflation… people did.  Specifically, the people in the background of this administration who intentionally trashed the U.S. economy, because they are ideologically aligned with that destruction.  The current economic team is devoid of any real world experience that would shape their outlooks on how to solve problems. Example: Transportation Secretary, Pete Buttigieg.

[Transcript] – […] THE NATIONAL FOOL: (Laughs.) (The fool covers his eyes and points towards the press.) (Laughter.)

Q Mr. President, Democratic Congresswoman Abigail Spanberger said of your presidency this week: “Nobody elected him to be FDR. They elected him to be normal and stop the chaos.” How do you view your mandate after Tuesday’s election losses for Democrats? And is she wrong?

THE NATIONAL FOOL: Well, Abigail is a friend. We had a long talk. She joked and said that I have a picture — she said I have a picture of Roosevelt hanging in my office — her office, okay?

I don’t intend to anybody but Joe Biden. That’s who I am. And what I’m trying to do is do the things that I ran on to do. And, look, people out there are — ordinary, hardworking Americans are really, really — been put through the wringer the last couple years, starting with COVID.

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The Bureau of Economic Analysis (BEA) has released the first estimate of Gross Domestic Product (GDP) for the third quarter (July, Aug, Sept). [DATA HERE]  The top line number of two percent GDP growth is significantly worse than most economists and financial pundits expected.

The second quarter GDP was 6.7%, so a slow down to 2% is very significant considering the economy should be rebounding and reopening after the COVID-19 impacts.  However, when we dig into the details [Table One] you will see how what is happening in your life is actually reflected in the data.   None of this should be a surprise, as the data is simply reflecting what is happening in your personal checkbook economics.

First, here’s the media jaw agape, with false explanations and justifications:

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The drop has nothing to do with the ‘delta variant’, and everything -EVERYTHING- to do with inflation and impacts from Joe Biden’s economic policies.

Let’s take a look at the details, and you will see how the national GDP is simply a reflection on what we are doing to survive the Biden economy.

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No politician in history -sans Carly Fiorina- is as intellectually deficient on any policy yet resoundingly skilled at parseltongue sentence structures as Alfred E. Newman, aka Transportation Secretary Pete Buttigieg.

The ability to speak in structured sentence soundbites, that mean absolutely nothing, was and is his forte.

When Barack Obama and James Clyburn were organizing the pathway for Joe Biden in the 2020 election, they reached out in March to the remaining candidates and told each of them they were going to withdraw.   Each candidate was given an offer they could not refuse along with a question of what terms it would take to get them out of the race and support the avatar that was/is Joe Biden.

Having watched the Buttigieg snap-n-pop candidacy, it was obvious his terms involved getting an innocuous job that would provide him and his husband enough graft to facilitate their lifestyle.  Obama and Clyburn offered Alfred E. Newman the job of Secretary of Transportation. Pete Buttigieg’s curriculum vitae included that he held a drivers license, so he gleefully exclaimed his qualifications and accepted the job.

The guy is an absolute doofus; a soy version of Greta Thunberg, who is incapable of speaking about anything that makes any sense.  He is a caricature of the person who thinks they know something, so they speak in weird sentences that amount to total gibberish.   WATCH:

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“What I can tell you is that we are doing everything for the short term and the long term and we will work through the factors that present themselves as challenges in the terms that we encounter on everything.  … The significant problems are not problem of insignificance because they are not important problems, they are significant challenges because of the importance of their significance and we are addressing them in both long and short term solutions. … This is important, not just morally but also economically, because the challenges are what we need to recognize as important maintenance issue challenges.”   (more…)

Hundreds of requests for details on the specifics of the container shipping backlog.  So, I spent 3 days calling sources, digging for details and gathering information on the substantive issue at hand.  The epicenter of the problem is not what is being outlined by financial media, corporate media and politicians who have a specific interest in distracting from the issues at hand.  This has nothing to do with COVID-19.

The issues being discussed today relate to events that happened a long time ago.  As a matter of fact, it was so predictable that Amazon, Walmart, UPS, FedEx, Samsung, The Home Depot and Target all had taken actions years ago -long before COVID- because they knew this day would come.  It was not accidental that those companies showed up at the White House to discuss the issue, because there’s now a full court press to hide it.

There is one very specific regional issue driving the problem.  Read on:

The trucking issue with California LA ports, ie the Port of Los Angeles (POLA) and the Port of Long Beach (POLB), is that all semi tractors have to be current with new California emissions standards.  As a consequence, that mean trucks cannot be older than 3 years if they are to pick up or deliver containers at those ports.  This issue wipes out approximately half of the fleet trucks used to move containers in/out of the port.  Operating the port 24/7 will not cure the issue, because all it does is pile up more containers that sit idle as they await a limited number of trucks to pick them up.  THIS is the central issue.

On October 16, 2020, the EPA reached a settlement agreement [DATA HERE] with California Air Resource Board (CARB) to shut down semi tractor rigs that were non-compliant with new California emission standards:

2020 SAN FRANCISCO – “Today, the U.S. Environmental Protection Agency (EPA) announced settlements with three interstate trucking companies imposing $417,000 in penalties for violating the California Air Resources Board’s federally enforceable Truck and Bus Regulation, Drayage Truck Regulation and Transport Refrigeration Unit Regulation.

“As trucks are one of the largest sources of air pollution in California, EPA will continue to ensure these heavy-duty vehicles have the needed pollution-control equipment and operate in compliance with the rules,” said EPA Pacific Southwest Regional Administrator John Busterud. “These companies have agreed to bring their trucks into compliance and operate more cleanly in all communities they serve.”

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The Bureau of Labor and Statistics (BLS) released the August review [DATA HERE] of producer prices for last month.  August rose 0.7% with cumulative results now showing an 8.3% increase in prices; the largest year-over-year jump in prices for final demand products in the history of tracking. The prior record was July with 7.8%.

Inflation is skyrocketing for consumer goods at all levels of production: Origination (commodity/raw material), Intermediate (Mfr/Wholesale) and Final products (retail).

In part, the extreme upward cost pressure from escalating fuel and energy costs are accumulating throughout the supply chain and surfacing in the prices of the finished products. We are all witnessing this in the prices at stores; especially in the quick turning products, like groceries (fast turn consumable goods), which reflect price increases the fastest.

Final demand prices moved up 0.7 percent in August, 1.0 percent in July and 1.0 percent in June. The year-over-year inflation rate on final demand products now stands at 8.3%.

MEDIA – […] “The data comes amid heightened inflation fears fed by supply chain issues, a shortage of various consumer and producer goods and heightened demand related to the Covid-19 pandemic. Federal Reserve officials expect inflationary pressures to ease through the year, but they have remained stubbornly persistent, with Friday’s numbers indicating that the trend likely will continue.

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The U.S. Census Department releases retail sales data today showing a strong contraction in consumer spending for July [MSM LINK].  The out-of-touch financial pundits were looking for a 0.3% decline; however, the drop was four times greater with a contraction of 1.1% in spending.

“The slide in retail sales comes after Friday’s preliminary consumer sentiment report from the University of Michigan showed one of the largest drops on record, leading some strategists and economists to warn of downside risk to the sales data.” (link)

This should not be unexpected for those who read here.  Massive price inflation on essential goods is eating up wages.  Food, fuel and energy price increases are changing consumer spending habits.  Non-essential purchases have stopped….. they haven’t slowed, they have stopped. ←Emphasize this because it is not showing up yet in the data lag.

The data reflects that auto sales were the primary contributor to the decline in spending (-4.3%).  This should make sense to people because auto purchases are the largest general consumer purchase outside of home purchasing.

When purchase decisions are made by families; and food and fuel prices are skyrocketing; replacing a vehicle is not essential.  Auto sales are a key indicator of consumer confidence and income.

Overall inflation is the primary driver.  Real wages are declining (wages – inflation), and disposable income is dropping quickly.  Americans need to start talking very deliberately about what is about to happen.  CTH predicted this and has been walking through the visible outcomes as each set of new data surfaces {SEARCH BOX}.  Nothing happening right now is unforeseen or not easily understandable.

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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.

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AFL-CIO President Richard Trumka rose to power in combination with President Obama.  Trumka became president of the AFL-CIO at the same time President Obama took office in January 2009.

The Chicago machine organized a pact between the revolutionary communists (RevCom) and labor unions in 2007; specifically to assist the installation of Obama in the 2008 presidential election.  The AFL-CIO (Nicholas), SEIU (Andy Stern), UFCW, UAW and AFSCME labor unions all agreed to assemble their foot-soldiers in common cause.  That union army defeated Hillary Clinton in a brutal 2008 presidential primary.  The communists won. The rest is history.

It was around the time of Richard Trumka’s 60th birthday celebration when the deal was signed.  The Communists would get President Obama, in return the labor unions would get the massive pension liability of union member healthcare removed from their books.  This is the origin of ObamaCare; by any means necessary.

Today, Richard Trumka died.

[Media] – Trumka, 72, has served as president of the massive 12.5 million-member labor union for more than a decade. Democratic politicians quickly memorialized him as a titan for worker rights.

“We are heartbroken to inform you that our brother and leader Rich Trumka passed away this morning at the age of 72,” said Liz Shuler, AFL-CIO Secretary-Treasurer in a note to staff.   President Joe Biden addressed Trumka’s death on Thursday, after apologizing for being late to a meeting with Asian American, Native Hawaiian, and Pacific Islander civil rights leaders, he said to reporters, “I just learned a very close friend passed away.”

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Generally speaking, the working-class Mexicans support Mexican President Andres Manuel Lopez-Obrador (AMLO), but find themselves frustrated by his seemed naivete about the scale of internal corruption.  AMLO is in a tough spot, because of the corrupt influence of cartel money combined with the influence of multinational corporations taking advantage of his nation.

President Lopez-Obrador and President Trump found their common partnership easy, because the Trump doctrine was essentially supporting the authentic voice of the Mexican people; while asking for help on specific issues (border security).

President Trump supported America-First, and President Lopez-Obrador supported Mexico-First; neither Trump nor AMLO put corporate needs in front of their citizens.

The United States, Mexico-Canada trade Agreement (USMCA) was built upon that foundation.  However, the CoC multinationals were unhappy about the overall USMCA agreement, because it did not protect them from economic nationalism.

Economic nationalism is exactly what President Lopez-Obrador is attempting to leverage against Big Agriculture, specifically Monsanto Inc, and we support it 100%.

The Counter – […] On December 31, 2020, Mexican President Andrés Manuel López Obrador signed a decree that could enable Mexican farmers to reclaim their livelihoods within their home country. The order calls for the phase-out by 2024 of two pillars of American agribusiness: glyphosate and genetically engineered (GE) corn, particularly corn grain consumed as part of “the diet of Mexican women and men.” 

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In April of this year the federal reserve announced they will support the economic agenda of the Biden administration by allowing rapid inflation. The FED was trying to provide cover for JoeBama’s economic plan. The era when the FED could impact inflation is long past. However, the Joe Biden policy impact will be clear, immediate and concise. The U.S. middle-class and blue-collar worker are about to be crushed under rising prices for consumable products.

Increases in inflation hit the working class (Main St) much harder than the investment class (Wall St) and financial elites. Factually the multinationals benefit from U.S. inflation as it puts pressure on domestic companies to ship their manufacturing overseas. Wall Street likes that. This dynamic has been an issue not-discussed by the financial media for decades. First, the Reuters article (when you see “commodity prices” think about the term “consumables”):

REUTERS – The U.S. Federal Reserve has signaled it will tolerate faster inflation for a time to cement the post-pandemic recovery and boost employment, but the side effect is likely to be a faster rise in commodity prices.

[…] After its latest meeting on Wednesday, the Federal Open Market Committee confirmed it will seek to achieve the *twin objectives of maximum employment and inflation at the rate of 2% over the longer run.

[*NOTE: in the new era of global economics these two are mutually exclusive. The FED is intentionally ignoring this point.]

[…] The committee noted price rises have been running persistently below target, so it aims to achieve inflation moderately above 2% for some time to make up the shortfall and anchor expectations at around the 2% level.

[…] The plan is to run the economy hot to achieve faster job gains, especially among disadvantaged groups that are marginally attached to the labour force, before shifting back to inflation control later in the cycle.

But the resulting pressure on global supply chains while the Fed pursues employment increases is likely to generate significantly quicker price rises for raw materials and a range of manufactured items. (read more)

This perspective is fundamentally false and based on assumptions that are decades old economic arguments. The reality of what will happen is exactly the opposite on the employment front.

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