Among other things annoying about their collective nonsense, the communist Democrats are linguistic agitators. While known for their insufferable victimhood positions in all of their arguments, this latest example highlights just how insane and ridiculous this AOC tribe has become.

Originally, they moved from “silence is violence“, to speech they didn’t like hearing about being called violence.  Indeed, anything the leftists do not like, they find some way to equate it with violence against them.  At a certain point it all becomes silly, and the frustrated audience tells them to shut up, and stop being stupid.

However, not going to be denied the opportunity to spread the moonbat nonsense, a member of the AOC squad, Ms. Ayanna Pressley, now rises to say that if American taxpayers do not forgive the mountain of student debt (created by attending college to learn how to be a better communist), then taxpayers are being violent against her:

Anger is a very visible response from the leftists whenever their policies are rejected.  The modern political left does not view rejection as a rebuke of their ideology, instead they view rejection as a need to push harder.

From the generation of new communists, insanely narcissistic people created by parents who were jaw-droppingly coddling and overindulgent, they need to reeducate their target.  They need you to change your thinking and perspectives from incorrect thoughts they don’t agree with to correct thoughts that align with their selfish worldview.  To achieve this outcome, the only acceptable path is to push their insanity even harder.

They have learned from their emotional experiences as children that eventually every parent will relent.  There is now an entire generation who apply that experience toward their bosses, their colleagues and every interaction in their life.   Yes, if you put anyone from this generation into a position of power or influence, what you get is exactly what Pressley and the AOC tribe are doing.  Their worldview is based on a cognitive and emotional inability to contemplate their ideology is flawed.

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Apparently living amid a city that is fraught with crime is comfortable for a lot of people in San Francisco, at least according to one of the most leftist Mayors in the nation.  You know things are bad when the Mayor of San Francisco, who ran on a platform to remove cops from the streets, starts shouting about the “bull**it that has destroyed the city”, and proclaiming that rampant lawlessness needs to stop.

San Francisco Mayor London Breed delivered a statement yesterday that is the exact opposition of her social program message from the past few years.  Apparently, the rise in random gangs of looters destroying the city and organized retail theft has become problematic for the politicians who hold power over the city.

Quite a remarkable shift in position, however, the transparency of motive is clear.  Breed’s faux anger and conveniently new frustration over the crime surge in the city were on full display at her noon news conference where she changed the rules of the safari park.   WATCH:

Democrats are worried about how their anti-police position has brought the criminal chickens home to roost.  Politically, Democrats -writ large- are trying to distance themselves from the crime their policies have created.  National polls show voters are correctly attributing the rise in crime to Democrats.  Thus, they need to change direction quickly.

SAN FRANCISCO – After months of viral videos showing deteriorating conditions on the streets of San Francisco, including smash-and-grab robberies and open-air drug use, the city’s mayor has moved to implement a new public safety approach to curb criminal behavior. Her move could signal a recognition by the Democratic establishment that crime may prove a potent issue in upcoming elections.

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WILDWOOD, Fla. – Today, Governor Ron DeSantis announced the Stop the Wrongs to Our Kids and Employees (W.O.K.E.) Act, a legislative proposal that will give businesses, employees, children and families tools to fight back against woke indoctrination.

The Stop W.O.K.E. Act will be the strongest legislation of its kind in the nation and will take on both corporate wokeness and Critical Race Theory. Today’s proposal builds on actions Governor DeSantis has already taken to ban Critical Race Theory and the New York Times’ 1619 project in Florida’s schools. For more information about the Stop W.O.K.E. Act, click here.

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The Commerce Department November retail sales data was release today [DATA HERE] – [DETAIL pdf HERE].  The top line issue is a shocking drop in retail sales for November in key categories that align with previous discussion of inflation spending priorities for all U.S. consumers.

Before getting to the data, one point is critical to remember.  The commerce department sales figures are based on dollars spent. This point is important, because the items being purchased have inflation within them.  When prices are higher due to inflation, sales figures should be higher due to higher prices.  Ex. If there is an 8% increase in retail price, but only a 4% increase in retail sales, that means less stuff is being sold.  [Less units sold at a higher price gives the illusion of an increase in sales.]

Despite the start of the traditional holiday sales and shopping period, the total sales growth in November was 0.3% over October [Column A].  Factoring in inflation during the same month to month comparison at 0.9%, you can tell that overall in November there was a drop in units sold across the total of retail sales outlets.

A drop in sales at a time when holiday shopping should be taking place is concerning.  However, the sales reality aligns with the employment data last week showing a drop of 20,000 workers in the retail sector for November.  Put them together, and the picture shows retailers did not need employees, because consumers are not spending.

If we look deeper into the November sales figures, we can see that a contraction in discretionary spending is the primary issue. Electronics (-4.6%), Department Stores (-5.4%) and even online sales at ZERO.  We can also see a direct correlation in comparative inflation impact within the sales data for November 2021 when compared to November 2020 [Column B].

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We said it was happening {Go Deep}, and it is.  Last month CTH put the preparation window at 60 days +/- depending on region.  That window is now around 30 days before the next spike in inflation shows up from cumulative costs snowballing throughout the supply chain. The “producer price index” is essentially the tracking of wholesale prices at three stages: Origination (commodity), Intermediate and Final.

The final product inflation rate in July (reported in August) was alarming at 7.8%. However, we warned it would get worse. The Bureau of Labor and Statistics (BLS) then released stunning price data for October [DATA Here], showing an even more dramatic 8.6% price increase in final demand. More intense warnings shared.

Today, we get the November BLS Result [DATA Here], and unfortunately the results are showing what was expected.  The cumulative costs of massive increases in energy prices are building into the supply at an astonishing rate.  The November data shows a rate of wholesale final goods inflation at 9.6%, the largest single month comparative rate increase in history.

The bureau even went back and revised/increased the August price index from 7.8 to 8.4 percent, and revised/increased the October figure from 8.6 to 8.8 percent.  The average monthly price increase is almost a full percent… every month.  It looks like the BLS backward revisions are an attempt to smooth down the rate of increase.

(BLS) – “The Producer Price Index for final demand increased 0.8 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.6 percent in each of the 3 prior months. (See table A.) On an unadjusted basis, the final demand index rose 9.6 percent for the 12 months ended in November, the largest advance since 12-month data were first calculated in November 2010.” (more)

I modified Table A (final demand product pricing), taking out some of the noise to make it a little easier to see the big picture of what is happening.

When you see the wholesale level of prices almost double the increase in consumer level inflation rate, you can predict that consumer prices will likely go even higher.  Future finished goods, at a retail level, will carry the current wholesale price increase.

Stuff costs a lot now… and because the inbound stuff to make the finished goods is still climbing in price…. stuff is about to cost even more.   You can see this in the inflation rate of intermediate goods which I have highlighted below.

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Well, there’s another “economist” who can be set into the folder of ‘no longer useful’.  During his appearance today on CBS Face The Nation, Mohamed El-Erian, chief economic adviser for Allianz, finishes his segment by revealing his underlying precept: Climate Change policy is now the economic policy driver of all his investment advice.

Within the interview, El-Erian said the “characterization of inflation as transitory is probably the worst inflation call in the history of the Federal Reserve.”  Additionally, El-Erian said inflation is likely to remain high into the next year and perhaps beyond.  Unfortunately, other than those two points of generally well educated accuracy, everything else is wrapped up in the political correctness of climate change…. which, you don’t really discover until the very end of the interview. WATCH:

The baseline for El-Erian saying the Build Back Better spending fiasco is a good thing, is based on accepting the pretense that massive amounts of federal spending will be needed to structurally change the U.S. economy from fossil fuel use to the Green New Deal.   If you do not believe in this transformation, there is no merit to any component of the BBB spending proposal. It really is that simple.

As a consequence, El-Erian is staking the position that climate change agenda politics is now the focal point from which all other economic policy will be determined.  He has conceded in his mind and worldview, perhaps based on his associations and peer discussions, that any forward economic analysis must therefore establish itself from the alternative fuel position.

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The United States government (specifically the Fourth Branch) has won an appellate level legal case in the U.K. as they seek to extradite Wikileaks founder Julian Assange for crimes against U.S. national security interests.

However, Assange’s lawyers have a few more avenues left to block the extradition.

As much as I would like to see a Julian Assange trial reveal all of the corruption inside the dark parts of the U.S. political and intelligence system, I can also see how our government would have a very strong institutional preservation motive to kill him first.

Wall Street Journal – The U.S. government won an appeal in its bid to extradite Julian Assange, clearing an important hurdle in Washington’s yearslong battle to put the WikiLeaks founder on trial on spying charges.

The decision by the U.K. High Court to overturn a lower-court ruling isn’t the end of the case. Lawyers representing Mr. Assange said they would seek permission to appeal the ruling at the U.K. Supreme Court, setting the stage for weeks or even months of further legal wrangling, lawyers say.

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President Trump economic policy -vs- Joe Biden economic policy

When wages (blue line) are above inflation (red line) our income is growing, life is good and the working class has more disposable income to enjoy life.  However, when wages (blue line) are lower than inflation (red line) our income is shrinking, life is a struggle and the working class has less disposable income to enjoy life.

♦ Point One – Nothing happens accidentally. The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle class to thrive.

♦ Point Two – There is nothing of value behind the obtuse term “service-driven economy.” The multinationals are paying for this administration, just like they paid the Obama administration; paying for economic policy that advances their interests.  Congress goes along with the K-Street demands, because Wall Street is now the primary benefactor of legislative intent. Nothing about their effort is done with American interests in mind.

To go deep, keep reading.

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At the most troubling level, Joe Biden believes what people tell him to say for the reason they tell him to say it.  This reality underscores the reason why Barack Obama’s network selected Biden as their disposable front man in 2020.  Biden sounds convinced, because Biden is convinced.  He’s wrong, factually and fundamentally wrong, but he believes what he repeats in public.

The most painfully obvious examples of this dynamic are present when Joe Biden explains economic things based on what other people have told him.  The guy really is the modern personification of the naked emperor parading around to show off an invisible coat that he genuinely believes he’s wearing. The self-deception would be embarrassing except for the fact he is only deceiving himself; so people laugh…. but this is dangerous.

Questioned today about inflation, Joe Biden starts talking about his Build Back Better program.  It really is worth watching to see how oddly emphatic he is in the belief that if government pays for a thing (childcare, healthcare, prescriptions) the cost of that thing somehow mysteriously disappears.

Biden believes that if government subsidizes something there is no longer a cost associated with it.  He believes this.

Setting aside the historic fact/truth that anything government pays or subsidizes ultimately costs more, the real cognitive dissonance in Biden’s worldview is that any cost associate with a ‘thing‘ disappears if the government pays for that ‘thing’.   From that bizarre viewpoint, the disappearance of public expense for that government subsidized thing then creates “deflation”, or a lowering in overall prices.

This claim is abject nonsense.  Truly and genuinely batshit crazy nonsense.

Example.  According to Joe Biden’s talking point: if government pays for college education, the price of a college student’s car drops.  It doesn’t.  To make that claim is absurd in the extreme.   The college student may have more money to pay for a car if they are not paying for tuition, but the car itself doesn’t change in price.

A person may have more money to pay for groceries if they are not paying for childcare expenses, but the price of the groceries doesn’t change.   The inflation on the prices of products at the grocery store does not change just because some families no longer have daycare expenses.   But Joe Biden believes it does.   (more…)

Joe Biden may be celebrating his historic achievement in reaching an inflationary milestone previously set by Jimmy Carter, but the working class is paying the price for their economic stupidity.

The Bureau of Labor Statistics releases the November inflation rate today [DATA HERE] showing another rise in the annualized rate of inflation of 6.8 percent.  As you review the data, ask yourself this question: ‘Is there anything in the current economic landscape to indicate this is going to stop?’  The honest answer is no.  Here’s why…

As the BLS accurately (albeit briefly) notes, their inflation data reflects the cumulative increases in costs of products and services at all stages in the supply chain.  Raw materials cost more (extraction, regulation impact), processing costs more (energy impact), transport costs more (fuel impact), final goods assembly costs more and handling costs more.  From field-to-fork or mining-to-showcase, the total cost to create stuff costs more. [AP Interactive Chart]

Yes, the inflation data is backward looking. Meaning, it is looking back toward the previous period to compare costs.  However, despite the White House protestations to the contrary, that’s not a good thing, because it is going to get worse.

The contracted price for goods delivered (depending on sector) are net terms in 30, 60 or 90 days.  Meaning, the purchase price on final goods wholesalers are receiving now, were agreed upon months ago.  Those terms for current arriving goods are no longer valid.  The new terms (purchase orders) carry higher costs, and as an outcome higher prices to consumers are still coming.

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