Everything several generations created, saved, worked for is setting up to be wiped out.
Boomers who were told SS would not be available to them at retirement, so they planned, scrimped, saved…are still going to lose in the end due to government spending and the Fed.
The end of the American entrepreneur, end of innovation, end of the American dream.
Gee, guess it’s time to become an illegal alien for interaction purposes….. just posting for a friend who lost all his guns in a boating accident when he came to America illegally…..
I do not buy the argument presented.
Gold and Silver have shown virtually no net movement in the past year. Individual markets and shipping costs had some major imbalances, but lumber, housing, residential lending have made progress on a “shocking” rate change. The “shocking” is why I think the central bankers might have just chanced upon the corrective action. Cool the speculative markets before the investor class finds an angle to distort markets and allow a ton of other industries a breath to catch up. Auto and especially used auto prices have been insane.
A year of slowdown brings everything from Beef to Lumber back under some control. The glut will worry the central bankers with the spectar of year over year deflation.
I predict one year from now, 4% on the 10 year, 4.25% on 30 year Mortgages, and what California, Nashville and New Jersey considers a housing crash and the midwest consider a market normalization.
There is a entire generation of consumers who never have had to worry about auto rates and housing rates in lending. A 12 month primer on economic policy was called for.
Ping!
“The collapse is engineered to create crisis conditions so frightening that they expect the majority of the public to submit to a collectivist hive mind lifestyle with greatly reduced standards. This would be accomplished through UBI, digital currency models, carbon taxation, population reduction, rationing of all commodities and a social credit system.“
Covid proved they will submit.
Three words: Programmable digital currency.
So if the economy “collapses” then will 3rd worlders STOP coming?
That is why I like cash. What I buy is none of the Gubbermint’s bidness.
Comment, from linked article....
Indeed, the months ahead are going to be quite chaotic.
Moreover, JP Morgan Jamie Dimon has “warned us”: a hurricane (whose name is “Stagflation”?, Jamie?)is coming. And there is not much time left to prepare for it for those who are not aware of the danger.
“…The worship of the state is the worship of force. There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inflicted by bad governments. The state can be and has often been in the course of history the main source of mischief and disaster.”,
Ludwig Von Mises, “Omnipotent Government: The Rise of the Total State and Total War” (1944).
Usual economist shortsighted tak. He describes a scenario that leaves out the most important part. The BRICS are busy moving away from petrodollars. That is the foundational end of the US economy.
Change in the wind...Welcome digital currency age..Got a Aunt has for the lack of a better term has the 1st dollar she ever made. She keeps some of her cash squirreled away not in a Bank like her kids houses and other places. Anyway ran by to drop off a few dozen eggs I sell her and had a little time to chat got to talking about the economy and I mentioned her the coming Digital age and how paper will be devalued out of existence and it came of a bit of a shock to her..A lot of older people do this and will be shocked when they are forced to turn in paper dollars for Digital dollars or face their paper currency devalued to the point of worthless. My Aunt has a great deal of money and she said it would finish her off if that happens, she is 87.. https://www.federalreserve.gov/newsevents/speech/powell20220617a.htm
More likely we are weeks away from deflation starting up. Food and fuel will be the exceptions. There is no global reset on the horizon as half the world’s population is going on the gold backed ruble with Russia. Say thank you to Putin for the save.
Great outline.
The irony is that the political front - the Puppet and our elected, so-called ‘leaders’/policymakers - seem oblivious to the effects (at least that’s what they project). Otherwise, they’d have had better propaganda than “Putin’s price hike” and a total 180 from having stolen credit for the ‘roaring’ economy from Trump.
Any ‘republican’ who wins this Fall & doesn’t vote to defund the government to compel a favorable policy trajectory for Americans deserves righteous punishment, just like the rest of them having intentionally placed us in this untenable position. Likewise, it applies to their supporters: They exist all around each of us.
It’s not just a moral imperative for either selfish ends or, for that matter, the benefit our offspring: Many of us took an oath (and so did those cited prior who now qualify for extrajudicial punishment for having violated said oath).
If there has to be a name, label it “P*****k’s Revenge” (as in H**ry; pardon the cheap attempt to camouflage a public post). It should begin in each person’s sphere and should ensnare local leaders.
Make a list if you don’t have one.
“The chair is against the wall.” We need an effective means to communicate this message and coordinate. I am surrounded by domestic enemies, but I’m fairly confident that we outnumber them by 2:1. The problem is that those who are motivated to act are in the distinct minority.
“What does it take?”
THAT is the question.
*
(From the article): " It was only a matter of time before the to forces of deflation and inflation met in the middle to create stagflation.
In my article ‘Infrastructure Bills Do Not Lead To Recovery, Only Increased Federal Control’, published in April of 2021, I stated that:
“Production of fiat money is not the same as real production within the economy…
Trillions of dollars in public works programs might create more jobs, but it will also inflate prices as the dollar goes into decline.
So, unless wages are adjusted constantly according to price increases, people will have jobs,
but still won’t be able to afford a comfortable standard of living.
This leads to stagflation, in which prices continue to rise while wages and consumption stagnate.
Another Catch-22 to consider is that if inflation becomes rampant, the Federal Reserve may be compelled (or claim they are compelled)
to raise interest rates significantly in a short span of time.
This means an immediate slowdown in the flow of overnight loans to major banks, an immediate slowdown in loans to large and small businesses,
an immediate crash in credit options for consumers, and an overall crash in consumer spending.
You might recognize this as the recipe that created the 1981-1982 recession, the third-worst in the 20th century.
In other words, the choice is stagflation, or deflationary depression.”
It’s clear today what the Fed has chosen. It’s important to remember that throughout 2020 and 2021 the mainstream media,
the central bank and most government officials were telling the public that inflation was “transitory.”
Suddenly in the past few months this has changed and now even Janet Yellen has admitted that she was “wrong” on inflation.
This is a misdirection, however, because the Fed knows exactly what it is doing and always has. Yellen denied reality, but she knew she was denying reality.
In other words, she was not mistaken about the economic crisis, she lied about it."
As I outlined last December in my article ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error’:"
(The article then continues with discussion about:
The Fed Will Hike Interest Rates More Than Expected, But Not Enough To Stop Inflation
Markets Will Crash And Unemployment Will Abruptly Spike
Price Controls : Price controls actually lead to a reduction in supply because they remove all profits and thus all incentive for manufacturers to keep producing goods.
Rationing : Rationing is not only about controlling the supply of necessities and thus controlling the population by proxy;
it is also about creating an atmosphere of blame and suspicion within the public and getting them to snitch on or attack anyone that is prepared.
Prepared people represent a threat to the establishment, so expect to be demonized in the media and organize with other prepared people to protect yourself."
"Be Ready, It Only Gets Worse From Here On ")
H/T to Blam and Jane Long !
Incompetence is one of the major causes of Stagflation recession depression the latest example is how the Biden and crew logic.
It’s nothing new the democrats tend to stay with the same logic.
Marxism has used the same tools from day one and it’s not about to change.
My career choice was banking and I specialized on liability management. As such I had day-to-day contact with the Federal Reserve. It didn't take me long to recognize that if the Fed had to run like a regular bank or any other commercial enterprise independent of governmental protection, it would not have lasted a year before it was forced into, at best, reorganization or, more likely, liquidation.
Almost 200 years ago Andrew Jackson hit the nail on the head… In the early 19th century, the forerunner to the Federal Reserve was the Bank of the United States. When Jackson became president in 1829, he vowed to curb the Bank's power over the national economy, calling the institution “a hydra-headed monster… it impaired the morals of our people, corrupted our statesmen, and threatened our liberty. It bought up members of Congress by the Dozen… and sought to destroy our republican institutions.” Today, many free market economists are saying the same thing about the Fed.—National Blog 2012
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