Armstrong Economics Blog/Armstrong in the Media Re-Posted Nov 6, 2022 by Martin Armstrong
Check out the audio above for my latest interview with Cris Sheridan from Financial Sense.
New Interview: World War III, Commodities, and Overthrowing Putin
Category Destruction of all Fossil Fuels
Southeastern U.S. Begins Running Out of Diesel Fuel
Posted originally on the conservative tree house on November 5, 2022 | Sundance
Reports are starting to come out that various regions in the Southeastern U.S. are running out of diesel fuel [North Carolina Example] – [Midway Kentucky Example].
The empty service station tanks in North Carolina today come after Mansfield Energy warned of a critical “diesel fuel shortage in the Southeastern United States, including North and South Carolina” [link]
RALEIGH, N.C. (WNCN) — A diesel fuel alert issued a week ago by a key fuel logistics company hasn’t changed — despite a small increase in inventories of diesel over the last week. The alert from Mansfield Energy a week ago was for the Southeastern United States, including North and South Carolina, Virginia, Tennessee, Georgia, Alabama, and Maryland.
The low supply left the Southeastern United States with just 25 days worth of diesel fuel, the company said. U.S. Energy Information Administration (EIA) reported Friday those numbers were actually down a bit from last week along the East Coast.
Low supplies make it difficult to find the fuel quickly, which means trucks have to visit several terminals and “strains local trucking capacity,” the company said. The low supplies also mean an increase in prices for diesel. On Friday, diesel prices opened up 10 cents for the week, Mansfield said. (read more)
Senator Joe Manchin Pretends to be Surprised That Joe Biden is Banning Coal Powered Energy
Posted originally on the conservative tree house on November 5, 2022 | Sundance
Yesterday, Joe Biden declared that all coal-fired electricity plants in the U.S would be shut down, saying, “we’re going to be shutting these plants down all across America and having wind and solar.”
Today, West Virginia Democrat Joe Manchin, the senator who gave Joe Biden the vote he needed for the ‘inflation reduction act’ also known as the climate change investment act that will eliminate all oil, coal and natural gas development, pretends to act surprised that Joe Biden will destroy the West Virginia coal mining industry.
Joe Manchin – “Today, U.S. Senator Joe Manchin (D-WV) released the following statement on comments President Biden made about shutting down coal plants.
“President Biden’s comments are not only outrageous and divorced from reality, they ignore the severe economic pain the American people are feeling because of rising energy costs. Comments like these are the reason the American people are losing trust in President Biden and instead believes he does not understand the need to have an all in energy policy that would keep our nation totally energy independent and secure. It seems his positions change depending on the audience and the politics of the day. Politicizing our nation’s energy policies would only bring higher prices and more pain for the American people.
“Let me be clear, this is something the President has never said to me. Being cavalier about the loss of coal jobs for men and women in West Virginia and across the country who literally put their lives on the line to help build and power this country is offensive and disgusting. The President owes these incredible workers an immediate and public apology and it is time he learn a lesson that his words matter and have consequences.” (read more)
Biden Says He’s Very Confident in the Election, Because Voting Public Want More High Inflation Policies to Continue (Video)
Posted originally on the conservative tree house on November 4, 2022 | Sundance
Earlier today Joe Biden said he is confident in the midterm election next week because the American voters love the high inflation economic policies he has initiated.
BIDEN: “And I find that — that the thing that gives me the most confidence is the fact that the policies we’ve initiated, people care about. Now, they want more. They write to me, but I don’t know anybody who’s really opposed to us”…
.
Biden Brags About Shutting Down Massachusetts Coal Energy Plant After Massachusetts Energy Company Announces 64% Increase in Electricity Rates
Posted originally on the conservative tree house on November 4, 2022 | Sundance
During a speech today, Joe Biden bragged about the example of his visit to a Massachusetts coal-fired plant that was forced to close due to regulation. However, what Biden didn’t mention was the energy provider telling customers to expect a 64% increase in electricity rates effective November 1st.
BIDEN: …”I was just — and so we can accommodate that transition. I was in Massachusetts about a month ago on the site of the largest old coal plant in America. Guess what? It cost them too much money. They can’t count. No one is building new coal plants because they can’t rely on it, even if they have all the coal guaranteed for the rest of their existence of the plant. So it’s going to become a wind generation.
And all they’re doing is — it’s going to save them a hell of a lot of money, and they’re using the same transmission line that transmitted the coal-fired electric on. We’re going to be shutting these plants down all across America and having wind and solar.”… (link)
Massachusetts – […] National Grid said the monthly bill of a typical residential customer using 600 kilowatt-hours of electricity will increase from $179 last winter to about $293 this winter, an increase of about 64%. National Grid said the delivery portion of electric bills will basically remain flat.
“National Grid buys electricity on behalf of its customers from the wholesale power market through a regulatory approved process established 20 years ago. That process has served customers well over the years and provides flexibility for unforeseen events, like limited supplier response to solicitations. But things have fundamentally changed,” Helen Burt, the company’s chief customer officer, said in a statement. “Today, under a sustained, high market price environment, it is challenging to maintain affordable prices. Given that, we think it’s a good time to work with our regulators and other stakeholders to review the process and electricity supply dynamics in the region, with an eye toward reducing price volatility and maintaining a secure, reliable and resilient energy system for the future.”
The company also announced that its natural gas rates are expected to rise on Nov. 1. They said they have a pending proposal with the state Department of Public Utilities that would result in the monthly bill for an average Boston Gas residential heating customer using 115 therms per month of $278, an increase of $50, or 22%, compared to last winter’s rates.
[…] Over the border in New Hampshire, Eversource announced in July that electric rates would be doubling for many residents due to higher natural gas prices fueled in part by the war in Ukraine.
Eversource did announce Wednesday that it has submitted a proposal to the Department of Public Utilities seeking to raise its natural gas rates. They said their average residential customer using 126 therms of gas a month would see an increase of about 38%, or $86 on their natural gas bill over last winter. Those rate increases would take effect Nov. 1. (read m0re)
Fed Pivot Myth
Armstrong Economics Blog/Central Banks Re-Posted Nov 4, 2022 by Martin Armstrong
Thank you to the reader who sent in this hilarious image. Despite all the incoming data and price instability, some expected the Fed to pivot on its stance. Even BlackRock reportedly told advisers to expect “pivot language” at the last Federal Open Market Committee meeting. They were hoping that the Fed would announce a looser stance for the December meeting despite conditions failing to improve.
The markets correctly anticipated a 75 bps hike for November. Jerome Powell said that incoming data from the last meeting has led the central bank to believe that rates will edge HIGHER than originally anticipated. PCE rose 6.2% over the past 12 months, with core PCE rising by 5.1%. Long ago after Powell changed his “transitory” stance, he reiterated that the Fed’s main goal is to bring levels back to the 2% target. Price stability is the top priority – period.
“As I’ve said in the last two press conferences, it will become appropriate to slow the pace of increases, as we approach the level of interest rates that will be sufficiently restrictive to bring inflation down to our two percent goal. There is significant uncertainty around that level of interest rates. Even so, we still have some ways to go, and incoming data since our last meeting suggest that the ultimate level of interest rates will be higher than previously expected,” the chairman reiterated.
The central bank realizes that the situation will only worsen. “Restoring price stability is essential to set the stage for achieving maximum employment and stable prices in the longer run. The historical record cautions strongly against prematurely loosening policy. We will stay the course, until the job is done,” Powell commented. His Q&A after the announcement only reiterated his extremely hawkish stance (see video above).
Powell said the Federal Reserve is honing in on three main factors: 1) how fast to tighten policy, 2) how high to raise rates, 3) how long to remain on the current course. Powell said they would move “expeditiously” to move rates, especially given the low starting point. He believes that incoming data justifies ongoing rate hikes, and his estimate is higher than what was announced in September. Finally, he said they might have a discussion on when to loosen policy, but there was an emphasis on the word discussion.
Portland’s Homeless Crisis – A Tale of a Blue City
Armstrong Economics Blog/North America Re-Posted Nov 4, 2022 by Martin Armstrong
Oregon is a beautiful picturesque state. Mountains, waterfalls, and beautiful beaches – Oregon was once a desirable place to live. Portland was a promising metropolitan area before politicians completely destroyed the city with light-on-crime policies.
The Portland Business Journal reported that high-earning residents relocated to areas like Deschutes County, Arizona, and Texas. As in all societies, the highest earners who have the ability to relocate are the first to flee crumbling cities. Multnomah County saw a decline of 2,000 taxpayers between 2019 and 2020, but more have likely fled.
As of June, the average rent in Portland was $1,700, but many will tell you that estimate is low. This is not why homelessness has spiked. Over the past two years alone, the homeless population increased by 25%! Homeless camps have moved into the suburbs as people simply have nowhere to go. The city has attempted to authorize homeless encampment sites in certain areas, but there is not enough room. Portland Mayor Ted Wheeler (D) has done nothing to address the mental health and drug abuse crises at the root of the problem. This is an extremely sad situation, as no one should live in this manner.
The pandemic added to the crisis, but Portland declared a state of emergency back in 2015 due to the drastic number of unhoused people. Oregon legalized hard drugs in February 2021. People may legally carry heroin, cocaine, methadone, oxycodone, and even methamphetamine for personal use. Most users will only face a $100 fine. Drug overdoses rose by 41% in 2020 from the year prior.
As we have seen in many Democrat-run cities, theft is basically legal. The Organized Retail Crime Association of Oregon (ORCAOR) conducted a poll that found 95% of businesses are unhappy with the relaxed crime laws, and 80% admitted theft had risen significantly. “We’ve seen an increase in assaults, in drug use within the stores, threats, individuals threatening with weapons,” said Jeremy Girard, the president of ORCAOR, who conducted the survey in late spring. Around 80% said there was not an adequate police response, but that is because they voted to defund the police and urged them to turn a blind eye to crime.
Businesses are closing, and people are fleeing the city. The Oregon Mayors Association wants to spend $123.5 million annually to prolong the problem rather than address the causes. Another example of poor policies ruining a blue city and asking taxpayers for more funding to throw money at the problem.
Fake News – Misinformation or Just Political Bias/Hate Speech
Armstrong Economics Blog/Politics Re-Posted Nov 3, 2022 by Martin Armstrong
Spread the love
QUESTION: What Tucker said about Raskin, would you call that fake news or misinformation? Just curious.
HJ
ANSWER: That was Tucker’s “interpretation” of the implication of what Raskin said. It falls outside of both and would probably attribute that more to political bias. I would say “fake news” is more what we saw with COVID where it is just outright false that is not attributed to interpretations or bias. I would say the “misinformation” is probably just another label for fake news. Hillary calling Trump supporters deplorable is not fake news or misinformation, it is just political bias.
What Tucker said was not fake news nor misinformation, but simply this class of political bias. That is what is probably dividing the country more than anything. It is this demonizing an opponent and both sides are doing it today. The vaccine scam of hiding the side effects is more in the area of fake news and misinformation.
Biden is out there claiming a Republican victory will be chaos for the economy. That is not Fake News or Misinformation, it is just political rhetoric that has become standard hate speech in politics.
Division of Pure Hatred
Armstrong Economics Blog/Politics Re-Posted Nov 3, 2022 by Martin Armstrong
QUESTION: Dear Marty
Are we indeed witnessing this divide between socialists/Marxists and conservatives/sensible people worldwide not just in the USA? Is this the last worldwide battle against marxism (anti-God)?
Look at Brazil. No different. In the protests yesterday several Lula supporters actually ran over Bolsonaristas who were protesting in the street. At least 5 were taken to the hospital and reports of some deaths. They were filmed on people’s phones. It’s horrible what the left will do.
Is this the point where we all need to choose a side and step up to be counted? Freedom has to be fought for it seems.
SP
ANSWER: Unfortunately, yes. While the United States is deeply divided and will ultimately break up as will Europe, our politicians have been fanning the flames of division. The controversy that Tucker Carlson created by characterizing Jammie Raskin as saying “Russia is an Orthodox Christian country with traditional social values. And for that reason, it must be destroyed no matter what the cost to us.” Tucker’s interpretation of Raskin’s speech is incorrect. Implied by Raskin was that the Democrats stand for freedom and politicians should not be telling you what to do. He insinuates that Putin rejects those ideas implied because it is an Orthodox Christian Country. Putin has rejected the West’s cancel culture and teaching sexual fluidity to children he called a Crime against Humanity.
Putin has said that the cancel culture, and divisions of people, were once part of Russia and led to its demise. Yes, he stands against homosexuality, and this is part of what is inferred by Raskin that Russia is not as liberal and rejects the principles of Wokeness and the push of the Democrats. Did Raskin outright call for a religious war? No. However, his vitriol is rather absurd pretending that the Democrats stand for democracy and freedom when they are dictating how everyone should live from heating their homes to what they drive. Then, he pretends that America stands for Ukraine while refusing to explain that Zelensky has outlawed Russian to be spoken by Russians in the Donbas and that they are to surrender their religious beliefs as well.
On September 6th, 2014, an official statement was made illustrating the religious battle that was also unfolding. The new Patriarch Filaret, who heads the Ukrainian Orthodox Church of the Kyivan Patriarchate, came out and said that Russian President Vladimir Putin has fallen under the spell of Satan and faces eternal damnation to hell unless he repents.
The Western press refuses to report the antics of Zelensky. He has waged a holy war. He has raised the so-called Patriarch of Kyiv and ordered all the Russians in the Donbas that their churches are now to be subsidiaries of Kyiv. He has supplanted the Patriarch of Moscow replacing him with his Kyiv version effectively this is like replacing the Pope with some local bishop. The French did that by seizing the Papacy and moving it from Rome to Avignon. But, hey, Zelensky stands for freedom and democracy while refusing to honor the Mink Agreement that was to allow the Donbas to vote on their independence. So much for democracy.
Why should there be one country under God? It was the Civil War that saw the motto “IN GOD WE TRUST” appears on American Currency in 1864. God is no longer part of the foundation of the United States. Marxism is forbidden by the Ten Commandments. Religion has been under assault in America for quite some time. Some have argued that getting rid of paper money will even kill that motto once and for all.
There is nothing about the United States that adheres to any religious dogma. This idea of “freedom” is really freedom from any religious restraint. This is what has divided the country deeply and the Democrats are looking to win on Abortion. There were extreme abortion supporters who supported even an abortion right after birth. Even the Washington Post had to question that one. I suppose we can do away with the death penalty and just call it post-birth abortion to make it sound better and legal.
The world is divided. Politicians have caused havoc worldwide. They are only interested in winning at all costs and have been demonizing their opponents and that simply divides the country just as Hillary called everyone who voted for Trump, 50%+ – DEPLORABLES. Let’s face it. Both sides are running campaigns of hate.
The United States is already divided. History confirms that a house divided like this cannot possibly stand. The post-2032 era will be a period where society must come to grips with how to design a nation from scratch. The politicians have fueled the politics of hate. I for one could never see myself even dating someone from the other side politically. It would result in constant arguments and at the end of the day, you just cannot live with someone who would be opposed to all your basic beliefs.
i Phone Production Halted in China
Armstrong Economics Blog/China Re-Posted Nov 3, 2022 by Martin Armstrong
China is losing business by implementing lockdowns that also prolong the global supply chain shortage. The Zhengzhou Airport Economy Zone in Henan province is currently under lockdown. This is where Apple’s largest manufacturing plant is located. The Chinese government said that the lockdown would last for only seven days, but we have seen their lockdowns expand numerous times. All it takes is one single case of COVID for the policy to change, and businesses cannot plan ahead.
Foxconn, the largest iPhone manufacturer, stated that they experienced a COVID outbreak in their factory. Foxconn already requires employees to take a COVID test within 24 hours of entering the building, and vaccinations are highly encouraged.
Apple’s earnings report released last week showed that the company remains strong. However, their iPhone revenue failed to meet expectations. Apple has been unable to provide fiscal guidance since 2020 due to uncertainty.
To avoid this uncertainty, Apple is moving around 5% of its global iPhone 14 production to India. Analysts at JPMorgan believe the company may produce a quarter of all iPhones in India by 2025. India also happens to be the second-largest smartphone market in the world, but Apple only secured 3.8% of the market last year as it competes with Xiaomi and Samsung.
“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” the company stated in September, hinting at the global fear of the Chinese government using technology for intelligence purposes. The low cost of manufacturing items in China may not outweigh the revenue loss caused by abrupt and frequent lockdowns.
Centinel2012 