Category Economic Subjects

Apr 22 2022

Elon Musk Unveils Financial Bid for $46 Billion Deal to Purchase Twitter, Through the Board or Directly to Shareholders


Posted originally on the conservative tree house on April 21, 2022 | Sundance

There is still doubt if Elon Musk really does want to purchase the Twitter social media platform.  However, Musk himself seems to be putting a lot of his own credibility on the line as he announces the construct of his $46 billion purchase proposal.

It looks like Musk has created a second alternative to the purchase if the Twitter board of directors refuses the original offer.  Within the secondary construct, a tender offer, Musk would be able to bypass the board and go directly to shareholders.

(YAHOO) – Elon Musk has secured commitments for $46.5bn (£35.5bn) that would allow him to bypass Twitter’s (TWTR) board and go directly to the social media company’s shareholders with his takeover bid.

Musk said he would personally provide $21bn of equity for the deal with another $12.5bn coming from margin loans, according to paperwork filed with the Securities and Exchange Commission on Thursday.

Banks, including Morgan Stanley, have agreed to provide another $13bn in debt secured against Twitter itself, according to the filing.

Musk has not yet determined if he will make a tender offer for Twitter or whether he will take other steps to further the proposal, the filing states.

Tender offers involve making a bid to purchase some or all shares of a company directly from its shareholders. (read more)

There are two ways to buy a publicly traded company. The simplest and most common is a board-approved merger. Talks start in secret, the two sides haggle and then arrive at a deal. Shareholders get to vote, and it is an all-or-nothing affair. Typically with a simple majority, the buyer walks away with the entire company. If the vote fails, the buyer goes away empty-handed.

A tender offer instead makes a direct appeal to shareholders to sell—or tender—their shares at a specific price. It can be used in friendly deals, but its real value is to hostile bidders when the target company’s board won’t engage. Tender offers simply go around them.

And they aren’t all or nothing. A buyer can bid for, say, just enough shares to cross 50%, thus seizing control. From there it could replace intransigent board members with friendlier ones, though in practice, it rarely gets that far. If a tender offer looks likely to succeed, reluctant boards tend to capitulate and negotiate a deal.

Mr. Musk would, with some regulatory paperwork, announce the offer at a specific price. The offer has to remain on the table for at least 20 days.

Those documents would lay out the number of shares he is soliciting. If Mr. Musk, who owns more than 9% of Twitter, takes a bare-bones approach, he would seek another 41% or so.

Meanwhile, Twitter would have 10 days to make its own recommendation to shareholders regarding the tender offer—in this case, presumably that it doesn’t accept it.

If not enough shares are tendered, Mr. Musk could cancel the offer or amend the terms.

The New York Post has details on the ideological opposition:

[…] “After backing out of an agreement to take a seat on the board, Musk is threatening to cut board salaries to zero, a move he says will save the company nearly $3 million a year. Each non-employee board member earned $225,000 in stock in 2021, according to Twitter’s public filings. Directors, with the exception of Dorsey and his co-founder, CEO Parang Agrawal, also received $12,500 in cash, plus extra fees, ranging from $2,500 to $7,500, for serving on various board committees.

So who are these Twitter board members fighting Musk’s hostile bid? Twitter — which has come under fire for censorship, in part for banning the New York Post’s coverage of Hunter Biden’s laptop — is filled with a motley mix of tech vets, retail gurus, academics, philanthropists and former government officials.” (read more)

Do you remember that weird dynamic when President Trump was dealing with North Korea and Kim Jong-un while at the same time having to pretend publicly that Beijing (Chairman Xi Jinping) wasn’t in control of Chairman Kim?   There are some similarities here with Elon Musk.

Musk likely has some of the best tech people in the world working for him and advising him.  He has to know that Twitter is only operationally viable insofar as the twitter simultaneous user processing systems remain on the backbone of U.S. government big data architecture.  Twitter most definitely is not financially stable as a business without govt data-processing subsidy; it’s just too costly and the Twitter service is free for most users.

If you accept that Musk is well aware of the cost issue, then he has to have some plan to deal with it – via at least a vision down the road where Twitter is financially viable – or, he’s going to end up needing the same data processing subsidy from the govt, which would inevitably maintain the same ideological underpinning he is trying to remove.

Assuming Musk is legit in his motives, his only leverage in this game of pretend and conquest, is knowing both the provider (govt) and recipient of the subsidy (Jack) do not want the full scope of the public-private partnership exposed.

I have no idea how this is going to end, but we can all see the Deep State is going bananas.

Apr 22 2022

CNN Subscriber Platform Will Shut Down April 30th


Posted originally on the conservative tree house on April 21, 2022 | Sundance

Keep in mind…. a more assertive, deliberate, strategic and determined MAGA movement is being noticed everywhere.  There are new combat rules in response to the leftist onslaught toward our children.  Cold anger has turned hot.  Some have called this ‘Dark MAGA‘!

Meanwhile…

Leftist favorite Netflix, is hemorrhaging users and just lost 30% of its value.  Spotify just refused to renew the leftist idols, the Obamas.  The ultra-leftist Disney Corp just lost their special district status in Orlando, and leftist Twitter is on the verge of a hostile ‘free speech’ takeover by Elon Musk.

The political culture wars are raging, Biden’s support amid the American people is collapsing even more, and Dark MAGA is not relenting.  Now this:

(SOURCE)

CNN spent $300 million to launch a subscriber-based platform that didn’t even survive a month:

“CNN+, the streaming service that was hyped as one of the most significant developments in the history of CNN, will shut down on April 30, just one month after it launched. CNN+ customers “will receive prorated refunds of subscription fees,” the company said.”

Apr 15 2022

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.

Apr 15 2022

March Retail Sales Report Shows Contraction in Non-Essential Consumer Spending


Posted originally on the conservative tree house on April 14, 2022 | sundance 

The U.S. Census Bureau {LINK} reports the March retail sales data {pdf LINK} showing a contraction in sales overall (excluding gasoline) and a massive contraction in on-line sales.  As we expected, we are seeing the continued demand side contraction for non-essential purchases.

First, when you review the data, keep in mind all of the statistics are based on dollars.  Currently the BLS calculates the rate of inflation at 8.5 percent year over year. So, when we look at retail sales figures, we must remember the items being sold cost more.  Any reported sales figures in a sector that do not exceed the inflation in that sector, indicates decline in units sold.

The top-line for March retail sales is 0.5% growth; however, the rate of inflation is 8.5%, so the amount of goods sold is substantially less than the 0.5% dollar increase would indicate.  Subtract the sales of gasoline (w/ massive price increases), and retail sales are negative (-0.3%) in March.  SEE TABLE-2

A good category to note the contraction in non-essential purchases is electronics and appliances.  Again, CORE inflation in that segment is around 6%, and yet total sales were only 3.3% higher, meaning less actual units sold.  Compared to 2021, electronics and appliance sales dropped 9.7%.

Showing how much people are pinched, gasoline prices are around 60% higher than this time last year, yet gas station sales only increased by 8.9%.  This means people are buying a lot less fuel at much higher prices.  People have shifted their transportation habits because gas costs so much.

Two more very interesting notes:

Food and beverage stores only reflected a 1.0% increase in sales, amid massive inflation in that sector.  People are buying less food at higher prices.  The year-over-year rate of retail sales increase for supermarkets is 8.4%, however, prices in the grocery store are well beyond 20%.  Again, food prices are changing shopping habits.   You can see the same trend in Health and Beauty Care products.  Consumers are being thrifty and prioritizing their expenses away from non-essentials.

Secondly, perhaps the most obvious shift in consumer spending is noted in on-line (nonstore) retailers.  March retail sales dropped 6.4 percent for on-line shoppers, again as a consequence of much higher on-line prices and some product unavailability.

The bottom line of the Retail Sales report is not unfamiliar to us.  What we are seeing is a lessening in overall consumer spending, as the costs for food, fuel, energy and housing have skyrocketed.   The demand for non-essential purchases is what we would naturally expect to see amid a nation having to make tough purchasing decisions based on inflation.

The economic policy of the people behind Joe Biden is catastrophic, and it appears to be a feature not a flaw.

That said, wise people -including people here- know how to extend their budgets and make use of raw ingredients for multiple purposed meals.  Keep doing that as much as possible to offset the dramatic increases in price.  Look for sales, use coupons, multipurpose products and be smart with purchase decisions.

We can and will get through this together.

If you have tips for people to assist with lowering costs of everyday items, please feel free to share them in the comments section below.  We always find excellent ideas around us for small ways to save.

Coming from a family whose Tupperware® was a matching set of Cool Whip containers, I can tell you there are times when being frugal is a valued skillset.  I welcome all the great advice we share as a community, and I will not let these horrible government officials remove joy.

I’ve been broke more than most, but I ain’t never been poor.

I appreciate you.

Apr 5 2022

Eurozone Inflation and ECB Incompetence


Armstrong Economics Blog/European Union Re-Posted Apr 5, 2022 by Martin Armstrong

According to Eurostat, the European Union statistics company, inflation in Europe rose to a new all-time high in March after advancing by 7.5%. This surpassed the high of 5.9% set in February and marks the fifth consecutive month of inflation in the Eurozone. Europe’s reliance on Russian energy has resulted in a 44.7% uptick in energy prices in March after rising 32% the month prior. Food prices rose 5% in March as increased costs for suppliers are passed down to consumers. The price of goods such as clothing went up 3.4%, while services advanced 2.7%.

The US and Britain have both raised rates in a too little, too late effort to combat inflation. Will the European Central Bank (ECB) follow suit? The ECB voted to maintain the 0% benchmark rate during their March meeting. ECB president Christine Lagarde is in no rush to raise rates.

The ECB moved to negative rates in 2014, and 2022 is now representing 8.6 years since that detrimental decision and we are seeing everything hit the fan. This entire Great Reset is now due to the fiscal mismanagement of governments and central banks. Those who still think there will be some return to normal finance are no doubt those wearing masks and lining up for booster shots every six months.

The central banks are keenly aware that they cannot stimulate economic growth, although they will not state that publicly. The wheel of fortune has completed its revolution.

Apr 2 2022

Returning to the Arena, Sarah Palin Announces She Is Running for Congress


Posted originally on the conservative tree house on April 1, 2022 | Sundance

Former Alaska Governor Sarah Palin has announced she is returning to the arena and will run for Alaska’s at large congressional district.  Her Twitter announcement reads:

“Today I’m announcing my candidacy for the U.S. House seat representing Alaska. Public service is a calling, and I would be honored to represent the men and women of Alaska in Congress, just as Rep. Young did for 49 years.”  ~ Sarah Palin (LINK)

Visit Sarah For Alaska HERE

Sarah Palin enters a crowded field of nearly 40 candidates to fill the seat held by Don Young, who died last month.  Alaska’s special election’s primary is scheduled for June 11th. The top four candidates will advance to the general election on Aug. 16th.

(LINK)

Sarah Palin represents one the rare few candidates in modern political history that does not come from the system of multinational corporate control stables.  This is good news.  MAGA 2022 Alaska.

Many people inside the modern MAGA movement may not remember how effective Sarah Palin was in 2010, specifically in the primary races against establishment republican candidates.  It was also Sarah Palin who helped launch the successful political careers of Nikki Haley (SC), Rand Paul (KY), Marco Rubio (FL), Rick Perry (TX), and many more.

The republican party poured money into Texas to support GOPe Kay Bailey Hutchinson against Rick Perry.  Sarah Palin stepped into Texas and singlehandedly turned that race by strongly supporting Rick Perry against the GOPe machine.

Unfortunately, many of the politicians who would not exist without Palin, later turned against her and the Tea Party in order to embrace the corporate donor class.  South Carolina Governor Nikki Haley was/is the most famous turncoat.  Haley was about to lose in the Palmetto state contest until Palin arrived and took down the vicious media machine that was attacking.

It is good to see her back in the arena.

An endorsement by President Trump is a foregone conclusion.

.

Mar 28 2022

Biden Out to Destroy the US Financial Markets – Tomorrow


Armstrong Economics Blog/The Hunt for Taxes Re-Posted Mar 27, 2022 by Martin Armstrong

The REASON Biden needs war is very simple. The world monetary system is collapsing. The negative interest rates in Europe since 2014 have wiped out all the pension funds that needed 8% to break even. This is what is being the Guaranteed Basic Income because the politicians have destroyed the future of pensions. Even in the USA, 100% of social security is invested in US government bonds that pay well below 8% and this has undermined the fund going forward. Biden is following the FDR playbook and since COVID failed to produce the Great Depression they were counting on, they are shifting to PHASE 2 which is war.

With World War III, they will call upon patriotism to get through not just their BUILD BACK BETTER agenda but to install a full-blown Marxist agenda. They need WWIII to justify significant tax changes that will be introduced tomorrow.

Tomorrow will be D-DAY in the Financial Markets. Not only will they introduce ECASH which will create the digital currency NOT issued by the Federal Reserves, but by the Treasury. Now there have been the haters of the Federal Reserve because they do not understand the entire purpose of Elastic Money and that the Fed has been independent of the White House. For the Treasury to issue the digital dollar means that the power to create money will shift from the Federal Reset to the White House. On top of that, they want to restrict the amount of digital cash you will be allowed to have to $2,000. The object will be to force everyone onto the grid to be fully taxed. Then they will push to eliminate the paper money.

That is just one assault on the financial system. The next is the Minimum Billionaire’s Tax to be set to 20%. Most people will cheer on taxing the Billionaires. But what is also in this proposal is Elizabeth Warren’s dream of Marxism come true. The “definition” of income will include UNREALIZED gains. That means that people who started major companies like Tesla, Google, Amazon, Apple, Microsoft, and so on, will be forced to sell their stock to just raise money to pay 20% of that UNREALIZED gain. They are cheering that they expect to raise $360 billion from this alone and have no idea that such a proposal can crash the stock market and undermine everyone’s pensions because of their hatred of the rich.

The UNREALIZED tax will eventually be expanded down to everyone. The Income-tax began the same way – it would only apply to millionaires back then. The UNREALIZED taxation will work similar to gambling where you pay tax on your gains, but no credit for losses. So if you buy a stock, it triples and you make $1 million, you will have to pay $200,000 to the Feds so you will be forced to sell at least some stock and as the price declines, so be it. You are taxed on where it was at the end of that period – no credit for the decline. Then next year, you will pay 20% again on what is left until the entire gain is paid in taxes and you will be left with NOTHING.

Blog/The Hunt for Taxes

Posted Mar 27, 2022 by Martin Armstrong

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The REASON Biden needs war is very simple. The world monetary system is collapsing. The negative interest rates in Europe since 2014 have wiped out all the pension funds that needed 8% to break even. This is what is being the Guaranteed Basic Income because the politicians have destroyed the future of pensions. Even in the USA, 100% of social security is invested in US government bonds that pay well below 8% and this has undermined the fund going forward. Biden is following the FDR playbook and since COVID failed to produce the Great Depression they were counting on, they are shifting to PHASE 2 which is war.

With World War III, they will call upon patriotism to get through not just their BUILD BACK BETTER agenda but to install a full-blown Marxist agenda. They need WWIII to justify significant tax changes that will be introduced tomorrow.

Tomorrow will be D-DAY in the Financial Markets. Not only will they introduce ECASH which will create the digital currency NOT issued by the Federal Reserves, but by the Treasury. Now there have been the haters of the Federal Reserve because they do not understand the entire purpose of Elastic Money and that the Fed has been independent of the White House. For the Treasury to issue the digital dollar means that the power to create money will shift from the Federal Reset to the White House. On top of that, they want to restrict the amount of digital cash you will be allowed to have to $2,000. The object will be to force everyone onto the grid to be fully taxed. Then they will push to eliminate the paper money.

That is just one assault on the financial system. The next is the Minimum Billionaire’s Tax to be set to 20%. Most people will cheer on taxing the Billionaires. But what is also in this proposal is Elizabeth Warren’s dream of Marxism come true. The “definition” of income will include UNREALIZED gains. That means that people who started major companies like Tesla, Google, Amazon, Apple, Microsoft, and so on, will be forced to sell their stock to just raise money to pay 20% of that UNREALIZED gain. They are cheering that they expect to raise $360 billion from this alone and have no idea that such a proposal can crash the stock market and undermine everyone’s pensions because of their hatred of the rich.

The UNREALIZED tax will eventually be expanded down to everyone. The Income-tax began the same way – it would only apply to millionaires back then. The UNREALIZED taxation will work similar to gambling where you pay tax on your gains, but no credit for losses. So if you buy a stock, it triples and you make $1 million, you will have to pay $200,000 to the Feds so you will be forced to sell at least some stock and as the price declines, so be it. You are taxed on where it was at the end of that period – no credit for the decline. Then next year, you will pay 20% again on what is left until the entire gain is paid in taxes and you will be left with NOTHING.

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They always target the rich to justify the tax and then extend it down to everyone. Janet Yellen tried to bullshit everyone lowering reporting every transaction down to $600 claiming they were after billionaires. They always count on people just being stupid.

The ONLY way to avoid this disaster of a 20% wealth tax, which would apply even to your home, is you can no longer invest. But it also means you should NOT take your company public or expand it for you will be punished for doing so.

Everyone will have to become a trader. So to avoid paying endless taxes on the value of your home thanks to inflation is to sell it and rent from Larry Fink at Blackrock, who is on the board of guess who – Kaus Schwab’s World Economic Forum. So in the end, Biden is ushering taxes to force you into YOU WILL OWN NOTHING AND BE HAPPY. Fink will be exempt for it is owned by a fund.

Yes, a number of people have asked in Fink is a subscriber to our model after he came out and said globalization is dead, I have no idea but I would NOT advise Fink anymore than I would Advise Schwab. The only question I would ask is why the hell are you trying to destroy the world economy? Investing in Blackrock emerging markets you better get out before it’s too late. These people have destroyed the world economy in just 8.6 weeks come the week of April 18th.

So while Biden calls for a regime change in Russia where he said: “For God’s sake, this man cannot remain in power,” I think he was looking at himself in the mirror. Putin is not a threat to the future of my family – Biden and his Marxists are. We need a regime change not in Russia – but right here in what used to be America.

The Founding Fathers KNEW the danger that an income tax would do for it renders all citizens nothing but economic slaves to the state and they must know everything we do at all times. Thus, in Article I the Founding Fathers PROHIBITED any form of a Direct Tax. We are now witnessing the destruction of the United States because of political corruption.

Direct Taxes

ARTICLE I, SECTION 9, CLAUSE 4

No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken.

Mar 28 2022

NBC Poll, Most Believe Biden to Blame for Inflation, 60 Percent Disapprove of Handling of Economy and 71 Percent No Confidence in Biden Foreign Policy


Posted originally on the conservative tree house on March 27, 2022 

Even NBC’s Chuck Todd was forced to admit Joe Biden’s polled domestic support keeps getting worse.  His approval rating is now the worst in their polling.

The Poll Data is AVAILABLE HERE.  Somehow NBC found enough people to show 33 percent of Americans approve of the president’s handling of the economy, compared with 60 percent who disapprove.  “Overall, NBC News puts Biden’s approval at 40 percent, which is a record-low for that network’s survey, compared with 55 percent disapproval.” (article link).

https://youtube.com/watch?v=aPqUgdo2wps%3Ffeature%3Doembed

[Poll Data Here]

The White House was hoping that all the planning that went into yesterday’s grand speech in Poland would help reset the Biden problem.  Those hopes collapsed when the muttering nutter rambled through 20 minutes of incoherent jibberish only to encapsulate the speech with the call for Russian regime change at the end, “for God’s sake, this man cannot remain in power.”

Also, don’t believe the nonsense about those being ‘off-the-cuff‘, or ‘ad-libbed ‘ remarks either.  They were written into the teleprompter, and he read them (go look). White House Chief of Staff Ron Klain is trying to cover up his own ineptitude by claiming his boss ad-libbed those statements.  He didn’t.

Mar 27 2022

Capital Flows Confirm War is Coming!


Armstrong Economics Blog/Capital Flow Re-Posted Mar 26, 2022 by Martin Armstrong

Our models have confirmed that Biden’s sanctions against all Russians have undeniably destroyed the global economy unfortunately precisely on time from its birth in 1950. Our capital flow models have confirmed that there has been an unprecedented cash outflow from China following Biden’s sanctions. Not only are we witnessing a withdrawal of Western capital from China realizing that the US has no interest in peace and China will be next, but we are also looking at collapsing confidence in globalization continuing from here on out.

Our models have confirmed a highly unusual change in direction of the global capital flows which is even showing up in the emerging markets. China saw investors pull out from its share markets over concerns that we are clearly headed into World War III. Historically, the capital flows to the dollar during world war under the assumption that tanks will not be landing on the beaches of Virginia or California. This will tend to support the dollar, but not long-term. Biden’s sanctions attacking individual Russians have turned into a nightmare. Besides the Czech Republic seizing ALL assets of any Russian based upon their ethnicity as they were doing to the Japanese during World War II in the United States, now even Switzerland is doing the same thing.

These sanctions are not going to cause regime change and the overthrow of Putin with Russians running into the arms of the West. This is outright hatred of Russians as a people and they will have no choice but bond with China in an all-out war against this outrageous tyranny. I seriously doubt that Biden even understands what he is doing at the directions of these Neocons who have infiltrated the White House.

These Neocons are bringing the entire world to destruction which some argue is all part of their plan to enable the world to BUILD BACK BETTER which necessitates the destruction of the current energy system and reduction of population to make Bill Gates sleep easy at night. So the next season of BUILD BACK BETTER may be the climax.

Our model has ALWAYS picked up the shifts in capital flows that precede war. This time we are witnessing outflows not just from China, but also from ALL emerging markets on a scale that is simply unprecedented. The timing of outflows is clearly linked to Biden’s unprecedented sanctions against the Russian people – not just Russia itself as a political state. This has NEVER taken place in history before with the single exception of the US sanctions imposed on Japan and the freezing of all their assets in the United States which preceded Pearl Harbor.

It pains me to have to even write this today. But clearly, those who understand where this is going is to World War III and make no mistake about it – this is INTENTIONAL! Even the official data has revealed that foreign investors have sold a net $5.5 billion of Chinese government bonds in the last few weeks. Biden stupidly threatened China that if they support Russia, they will suffer the same sanctions. This is just insane and it is DELIBERATELY trying to destroy the entire world economy.

Even from NATO, Secretary-General Jens Stoltenberg said at a press conference on March 24, “China must not provide economic or military support for the Russian invasion.” The previous day he accused Beijing of spreading “blatant lies and misinformation.” What they are calling “misinformation” is anything that challenges the West’s own propaganda. They want WAR for the demands of Putin are reasonable – Ukraine remains neutral, surrender Donbas and Crimea which are all ethnic Russians when Zelensky passed the language law that Russian is no longer to be an official language in Ukraine. That is the same as telling all Spanish if you do not speak English – get out.

All we can do is write to every political leader and DEMAND accountability for the Biden Administration is out to BUILD BACK BETTER, but that requires total destruction first.

Mar 26 2022

India-Russia Rupee-Ruble Financial Trade Arrangement Could Be Ready in a Week


Posted originally on the conservative tree house on March 25, 2022 

The Federation of Indian Export Organizations (FIEO) announced today they are likely to have the financial mechanism for a Russia-India currency exchange and trade process in place within a week.   Previously, India announced their decision to continue purchasing oil from Russia despite the western sanctions.  Prime Minister Modi is a pragmatic, tactical and shrewd business-minded politician.

India is becoming a major player in the geopolitical world, as recognized by former President Trump during his Indo-Pacific trade partnership discussions.  The population of India is over 1.4 billion people, and they are industrializing as a more democratic counterbalance to China. Prime Minister Modi has been a key political leader in generating economic alliances to the benefit of his nation, while maintaining a prudent stiff-arm toward the influence of major multinational corporations.

(Via CNBC) – India is expected to announce a payment arrangement that would allow trade with Russia to continue, the president of an Indian exporters’ association told CNBC’s “Street Signs” on Wednesday. 

The so-called rupee-ruble trade mechanism could come as early as next week, according to A Sakthivel, president of the Federation of Indian Export Organisations (FIEO).  The FIEO, a government-backed association representing over 200,000 exporters, oversees India’s export promotion councils.

India’s finance ministry and the Reserve Bank of India have not commented so far on the mechanism, which would let Indian exporters continue their business with Russia even after Western sanctions restricted international payment mechanisms. The arrangement would also allow India to buy Russian energy exports and other goods.

Sakthivel said the Indian government is working on a proposal to allow four to five nationalized Indian banks to be engaged in the trade, and there have been consultations between the central bank governor, the finance minister and banks.  (more)

(Left to Right) – Xi Jinping (China), Vladimir Putin (Russia), Jair Bolsonaro (Brazil), Narendra Modi (India) and Cyril Ramaphosa (South Africa), the BRICS group.

REMINDER –  Stand back and look at the biggest of the big pictures.

A Build Back Better society, or “great reset”, is factually underway as triggered by the gateway of SARS-CoV-2 and the massive spending by western nations to subsidize the lockdowns, shut-downs, economic closures and forced unemployment.

Global inflation is being driven not only by the American spending spree, but also by the massive government spending programs of the EU, U.K, New Zealand, Australia, Canada and many western nations.

The bills for those subsidies and bailouts are due.  The labor of the citizens is going to have to pay those bills, while simultaneously we deal with inflation and massive debt balances on all nations’ balance sheets.

Into this mix comes the very real possibility of a declining U.S. trade dollar, as a result of geopolitical conflict between the west and Russia, China, Iran and OPEC in the geography of Ukraine.   The financial sanctions by NATO and western allies have factually created a rift in currency exchange valuations.

As the proverbial west hammers those sanctions even harder and more deliberately, what they are doing is creating a stronger and greater likelihood that the dollar will be removed as the global trade currency, and we will enter a phase where two sets of nations exist:

One set of nations will run their economy on oil, gas and fossil fuels.  The other set of nations will be focused on running their economic engine on the premise of sustainability, or renewable energy.

The sanctions toward Russia actually help to drive this chasm even wider.

To me, this looks entirely purposeful – done by specific intent and design.

Two world groupings.  One group, oil-based energy (traditional) – let’s label them the RED GROUP; and one group GREEN energy (the build back better plan).  It is not accidental these two groups hold similar internal geopolitical views and perspectives.

♦ The important part to see is… there are going to be two sets of nations with two structurally different economies. A red group and a green group.

These two groups are going to end up in competition with each other.  It is as inevitable as sunrise, if you can see this cleaving I am talking about.

Now, think about the economic system of trade that exists between the Red and Green groups.  There has to be a way for them to exchange value if they are going to purchase from and sell to each other.

Additionally, and this is *key*, the Red group is going to have a strong strategic advantage in production costs.  The Red group is going to be using oil, coal and gas (fossil fuels), which are abundant, cheap and the infrastructure is already in place.

The Green group is going to be at a strong disadvantage, at least for a generation or two, as the costs associated with the production of goods and systems is going to be much more expensive to operate, as the transition into Build Back Better sustainable or renewable energy takes place.

In the macro view, stuff from the Red group is going to be cheap.  The exact same stuff from the Green group is going to be more expensive.

If you are still with me, hopefully, you can see how this is all coming together.

♦ The western debt incurred during COVID-19 is a problem.  However, this debt diminishes with inflation.  A $20 trillion debt is not as big a problem when bread costs $100/loaf and people are earning $50,000 a month.   The Green group is entering into this position.  In this position, the BlackRock approach of physical ownership of real estate and physical stuff is way more important than holding money or dollars which will immediately lose value.  Physical ownership of stuff is important.

♦ It is likely, based on the economic alignment, the Green group will be forced to assemble under one currency (set of financial valuations), and the Red group will then assemble under their own currency (set of financial valuations).  My hunch is the western group (green) will use a digital currency.

Once both sets of currencies are established, then trade between the Red group and Green group can be determined based on a central valuation done by, say, The World Bank.   In the Red group, a 20″ tire is worth 100 red bucks.  In the Green group, a 20″ tire is worth 150 digital green bucks.  Two vaults and two exchanges.

In order for all of this to come together, the population needs to be shifted in their perspective of money and material value.   That takes us back to where this conversation started: “owning nothing and being happy” is akin to “prizing experiences over possessions.”

The Western (green) financial mega-system operators are going to own the physical assets, and the people will live under that ownership – a modern structure of serfdom so-to-speak.  In the largest nations within the Red group, that social system (essentially) already exists – India is a prime example.

If we can get President Trump back into office, and then rally massive support around him, he will dismantle this handbasket they are determined to put us into.  However, I see no one else who is even remotely up to this challenge.   We need Trump!