Inflation & the Cost of Labor = Unemployment Decline of the USA


Armstrong Economocs Blog/Economics Re-Posted Apr 14, 2022 by Martin Armstrong

To me, it is fascinating how everything dovetails in together when the computer is monitoring everything on a global scale. The projection that unemployment could reach 15% in 2020 not only came true, but it did so tied into the whole COVID scam which has provided the mechanism for government control over the population and to implement one aspect of the intended Agenda 2030 and the elimination of Democracy. But more serious than that, we still face the risk of more than 25% unemployment in the post-2024 period.

Right now, everywhere I do I see help wanted signs. Even at FedEx the other day I saw a sign help wanted. There is another aspect to this inflation and GREEN regulation that is undermining the entire world economy. We are already short over 80,000 truck drivers and then California imposing demands that Trucks must now comply with their insane regulations by January will kill off even more trucks and we can expect inflation to well exceed 20% even in their manipulated statistics.

The higher the inflation, the lower the net real wages, and this then compels small businesses to raise wages but this produces COST-PUSH inflation on top of the SHORTAGE-INFLATION and this is a lethal combination for the economy going forward. This means small businesses will decline unable to find employees and the higher the inflation, the fewer people can afford to buy. This all combines to the WORST economic outlook possible post-2024.

So stock up on that food. This is going to get much worse. With all the threats the US hurls now at China, they may think they are a Lion when they look in the mirror, but if I was China, locking down Shanghai which is the busiest port in the world will not only further wipe out trucking companies in the USA, but it will result in a further jump in inflation. So threatening sanctions against China will worsen the economy and we have already divided the world economy by ending Globalization. This is eventually the end of the United States and the dollar. Even the IMF has come out and warned this is undermining the dollar as the reserve currency.

We have the WORST possible crop of politicians in charge and they are just jumping on the bandwagon to hate Putin without ever understanding that they have dealt a permanent death blow to the world economy. Thus, our projection on unemployment may sound instance exceeding the highs of the Great Depression, but the inflation is reducing the living standards and the reduces economic activity, and that in turn results in businesses failing and jobs vanishing.

The United States has abused its position and it may think that it is a Lion, but it has been reduced to just a cat. They should pay attention to the military. The Pentagon has been trying to throw cold water on this heated invasion talk over Russia and threatening China with sanctions if they dare to help Russia is just insane. They know they are far stronger with Russia than to let Russia fall and the West would only then turn against them. There is deep concern that the USA will lose in a war with China. These politicians had better look at reality rather than the image they see in the mirror.

History repeats became human nature never changes. Although Athens was enjoying a golden age while led by Pericles, this soon came to an end and thus began the fall of Athens in 431 BC when the 27-year-long Peloponnesian War began. Athens became extremely arrogant and compelled others to donate to their treasury to protect them against another invasion by the Persians which did not happen – today’s Russia. This led to discontent and the image of Athens became tainted by arrogance.

Sparta, which was a communist society, had longed for dominance in Greece. In May of 431 BC, war broke out between Athens and Sparta. The Peloponnesian War (431–404 BC) was fought between the Delian League, which was led by Athens, and the Peloponnesian League, which was led by Sparta. Historians have traditionally divided the war into three phases. However, there were two major causes of the rise and fall of Athens. First is the conflict between the oligarchy and democracy, and its arrogance. The democracy produced many great leaders, but unfortunately, also many bad leaders. Their arrogance lived off of the past glory of the great leaders during the Persian Wars, and it led to the end of Athenian power in Greece.

The decline and fall of the United States is following the very same pages from history. It is the arrogance of the United States threatening China while attempting to destroy Russia that will be what historians write about when the dust settles.

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