Buttigieg Blames Private Sector for Formula Shortage


Armstrong Economics Blog/USA Current Events Re-Posted May 17, 2022 by Martin Armstrong

Transportation Secretary Pete Buttigieg, the man who suggested everyone immediately switch to electric vehicles to combat the “Putin gas hike,” has a new message for American parents struggling to feed their babies – deal with it.

Buttigieg appeared on CBS and could not contain his utter ignorance and lack of empathy. “This is a capitalist country. The government does not make baby formula, nor should it. Companies make formula. And one of those companies, a company which, by the way, seems to have 40% market share, messed up and is unable to confirm that a plant, a major plant, is safe and free of contamination,” he stated, absolving government of any guilt. The baby formula shortage began BEFORE Abbott had a formula recall.

Luckily reporter Margaret Brennan was able to explain the situation to the confused politician. Buttigieg said the shutdown has nothing to do with a shortage of ingredients. “No, it is a factor that has led to price. Inflation is one of the factors among many that has been blamed for months of problems with baby formula even before the recall in February,” Brennan reminded him. He maintained that the private sector has the ability to make more formula, and Brennan reminded him that right now America is importing baby formula from Europe as its strategy.

The Biden Administration happily sends $40 billion off to Ukraine without hesitation but refuses to fund the problems we are facing at home. This nationwide formula shortage is an extremely serious issue that US politicians simply disregard. A fraction of the money spent on Ukraine could have fixed the Michigan plant that closed after the recall, and it could have been used to create new manufacturing plants and import more formula in the meantime.

INFLATION – RECESSION – RISING RATES RATHER THAN LOWER RATES


Armstrong Economics Blog/Economics Re-Posted May 13, 2022 by Martin Armstrong

COMMENT: Marty, I want to thank you so much for the WEC. Perhaps you will consider doing one that is streamed in the middle of this craziness. I have listened to many analysts. But you are head and shoulders above everyone. Only you called for declining economic growth, rising inflation, and rising interest rates in spite of a recession. I understand it is Socrates that puts this all together. But we really need you now.

Please, Please, Please!

WL

ANSWER: I will consider it. My days are full and I cannot even begin to explain everything that is coming in from sources around the world. The “Stickly” core inflation, which does not include food or energy, made its low perfectly on its 31.4-year decline from the highest yearly closing in 1979 to the bottom in 2010. This is really important to understand because while food and energy are rising faster, they filter over into the core inflation and are driving that higher at a faster pace. We are looking at everything rising, much as was the case during the 1980s. Even ticket prices are rising in sports.

I understand that people THINK that Paul Volcker conquered inflation by pushing interest rates to insane levels. Let’s get something straight — the high-interest rates did NOT stop the inflation. Volcker drove the value of the dollar higher and that produced DEFLATION, driving the British pound to $1.03 by 1985.

Raising rates does NOT stop inflation; it will only increase it when we are dealing with a SHORTAGE rather than an excessive demand boom. The same result will unfold with the rising dollar BECAUSE of the rising rates and that produces deflation, but we have the stupidity of those pulling the strings in the Biden Administration and Europe for climate change. They are in power now and want to destroy as much of the energy system as they can because they fear the election cycle will swing against them so they must destroy whatever they can right now.

Food shortages will get MUCH worse into 2023, and we will see power failures this summer in different parts of the US and Europe. There are people in the Biden Administration who simply want to destroy as much as possible in the energy sector in hopes that the Republicans can do nothing if they take back control.

J6 Committee Issues Subpoenas to Five House Republican Members


Posted originally on the conservative tree house on May 12, 2022 | Sundance 

The entire premise of the J6 committee is a farce.  The overwhelming majority of Americans fully understand it is a political exercise between Democrats in congress and their hired Lawfare allies.  The goal is to label their political opposition as extremists, block and/or tarnish President Trump and manufacture a false premise to advance the Democrat 2022 election goals.

Despite this reality the effort continues in order to fuel their far-left base and media allies.

Today, the House committee triggered subpoenas against House republican members.  The subpoenas were sent to House Minority Leader Kevin McCarthy (U-DC), Rep. Jim Jordan (R-Ohio), Rep. Scott Perry (R-Pa.), Rep Andy Biggs (R-Ariz.) and Mo Brooks (R-Ala.). All five of the house members had previously rejected investigators’ requests for voluntarily testimony.

The subpoena authority is likely, hopefully, to be challenged in court.  The premise of a House committee issuing subpoena’s to the political opposition of the same House membership appears to violate the function of government on many levels.

WASHINGTON DC – […] The Republican leader indicated he might not comply with the subpoena.

“My view on the committee has not changed,” said McCarthy, who added he had not yet seen the subpoena. “They’re not conducting a legitimate investigation. It seems as though they just want to go after their political opponents.”

The select committee demanded testimony from the five lawmakers in the final week of May.

Members of the select panel have wrestled for months with the question of how to handle their GOP colleagues. The Capitol riot committee’s chair, Rep. Bennie Thompson (D-Miss.), had previously doubted the wisdom of that subpoenaing lawmakers, as that would likely trigger a lengthy court fight unlikely to be resolved before in the current Congress.

But the select panel’s thinking appears to have changed, as every avenue of the probe led investigators toward fellow House members.

Some of the subpoena targets — and several other GOP lawmakers — were regularly in contact with Trump and the White House in the weeks leading up to Jan. 6. They helped amplify false claims about the integrity of the 2020 election and were among the earliest to call on colleagues to challenge the results.

But members were mindful that demanding testimony from lawmakers would potentially set a precedent. While House and Senate ethics committees have subpoenaed members and staff before, there’s little precedent for an investigative committee — particularly one mainly guided by the majority party — turning its subpoena powers on fellow members of the House.  (read more)

The committee is desperate to find something, anything, that can justify all of the time and expense they have been consuming in the effort.  The clock is running out fast and the pressure is building internally. As a target of their investigation, and as a recipient of one of these subpoenas’, I can assure readers of the ridiculousness of the people conducting the investigation fishing expedition.  It is nonsense.  All of it.

Take your pick of ultra-MAGA graphics, either one is appropriate…

Classic…

Modern…

The Fed & The Collapse of Socialism


Armstrong Economics Blog/Basic Concepts Re-Posted May 6, 2022 by Martin Armstrong

QUESTION: Been following Martin since 2008 (Gold ride) – he is the only one who has been right AU and AG top 2011.
****Important question for Martin, please
How can the fed raise rates with governments owing so much debt please ???? what are the consequences of debt restructured? 100 year treasury real estate
Thanks you so much for sharing all your insights

JT

ANSWER: The Federal Reserve is independent. Despite all the nonsense that these pretend analysts attribute everything to the actions of the Fed, if they really knew their history, they would realize that the Fed has often been at war with the White House. You cannot be an objective analyst when you predetermine a conclusion based upon a theory you choose to believe. This is the sad state of analysis these days. People start with the conclusion and then cherry-pick the facts to support what they think should be the outcome. This is what has plagued gold analysis, but the very same process has doomed climate change analysis and the destruction of the world economy.

Unfortunately, when it comes to the Quantity Theory of Money, these analysts take the position of politicians and exonerate themselves of all responsibility for their reckless fiscal spending. They endlessly try to bribe the people to vote for them. I have stated many times, pre-1971, when it was illegal to borrow against an E-Bond, for example, the theory was printing money increased the supply and was inflationary. Thus, borrowing did not increase the money supply and was not inflationary. But when you can post T-Bills as collateral and trade the markets, that theory is no longer valid, so debt is now simply money that pays interest the way it began in 1861. We seem to always return to the starting place, like the game of Monopoly where you must pass Go every trip around the board.

Socialism is the worst form of government; just look at the Democrats. They do not know how to run for office without promising free something or other. It is never about the fate of the world, the nation, or our families. They are promoting war because they assume that the people will not change the government in the middle of a war. They have no problem watching our people die.

The Fed has ZERO control over fiscal spending. Nevertheless, the Fed has been itself brainwashed, and because everyone blames them for inflation, they will be compelled to raise rates or suffer the calls for their overthrow. The increased cost in the deficit will never be blamed on them — only the inflation rate. This is why the central banks have ZERO control over the economy anymore. Soon, people will wake up and realize that this statement is true. When they do, we will get a 1987-style panic.

Here is a chart of the dollar index. The dollar had already begun its decline when they stood up at the Plaza Accord, announcing they wanted the dollar down by 40%. As the dollar began to fall rapidly, other member nations complained. In February 1987, they gathered together to announce that the dollar had fallen too far and enough was enough. When the dollar continued lower, the then G7 lost all credibility, and the markets suddenly realized they were not in control.

This is what we will see once again. This type of inflation was caused by the COVID lockdowns. China may really have shut down Shanghai to push inflation even higher in the West, seeking regime change in Washington, hoping the inflation will lead to a political blood-bath for the Democrats to get the world back to some normalcy. When inflation is set in motion because of a shortage, like crop failures, raising interest rates will not suddenly make it rain.

The Fed will act out its role because it has no other choice. Its rate hike this week is only playing catch-up with the market. Rates are rising because they are supposed to reflect the inflation rates plus a profit. That’s without the Fed trying to manage the economy. Just look at the rates and ignore the pundits. You will see that the Fed is chasing the market, it is not driving the market. Hence, the Fed is being compelled to raise rates not by its own desire to prevent inflation, but to keep pace with the markets themselves.

The idiots will blame the Fed as inflation rises and blame them for not acting. There is no saving grace for the Fed. The system is collapsing and this is in fact what gives Klaus Schwab power, for they know in Europe that they can no longer borrow money to fund socialism. The answer is to default on all debt and to hide that, they need to make it sound like they are doing this for you — who they care so much about.

Hence, this default will be disguised as relieving you of all your debt when it is the governments who are defaulting, and unable to raise interest rates in Europe. This is also the backdrop to the Repo Crisis and why US banks withdrew from making markets because they did not want to take European debt as collateral, forcing the Federal Reserve to step in.

Pelosi’s delegation went to Ukraine and said the US does not want peace and it will not accept the status quo. They want total victory against Russia and they have UNCONSTITUTIONALLY declared war on Russia and they are pretending they can act unilaterally and as long as the Ukrainian people are on the ground and not American troops, then it is not formally a war that only the people can declare under the constitution. This is all a cover for the Great Default because Keynesian Economics has completely failed. The central banks CAN NOT stop this inflation nor do they control the fiscal spending. Governments are now spending whatever they want because they know the Great Default is coming. This is all part of the Great Reset pushed as the solution by the World Economic Forum.

As we move head-first into 2032, we are looking at the total collapse of not just socialism because of the inability of European governments to continue to borrow as the Fed raises rates, and they cannot, but we are also staring into the eyes of the collapse of Republican forms of government on a global scale.

Americans Lost Hope in the Democratic Party


Armstrong Economics Blog/USA Current Events Re-Posted May 4, 2022 by Martin Armstrong

Every facet of life has become more expensive. Regardless of your net worth, chances are you are feeling the effects of inflation. According to a new ABC News poll, 94% of Americans stated they are “concerned” or “upset” about inflation. They likely would have chose other descriptors if available. Around half said they were “concerned but not upset,” as if this was not an entirely preventable situation.

They then went on to ask respondents about their views on Biden, and 52% said they disapproved. Only 21% “strongly approve” of Biden’s work – why?

Well, 51% who approved support the endless COVID restrictions. This is the group that voted for Biden out of their hatred for Trump and will likely vote again out of fear. Regardless of party affiliation, most Americans disagreed with Biden on absolutely every other issue. Around 57% see that his administration is hurting the US economy, and 68% now understand that Biden has not done enough to control inflation. As much as they would like the term “Putin’s price hike” to stick, most of us know the truth.

Half of Americans stated they trust the Republicans to tackle key issues, compared to 36% who still trust the Democrats. Only 31% believe the Democrats can handle inflation, while 50% have hope in the Republicans. Americans seem to favor the Republicans on every issue, such as inflation, immigration, crime, and the war in Ukraine. There are many indicators for what to expect during the 2022 US midterm elections.

2000 Mules – Another Banned Movie?


Armstrong Economics Blog/Politics Re-Posted May 4, 2022 by Martin Armstrong

DHS Secretary Admits Scale of Illegal Alien Crisis, 1.5 million Unlawful Border Entrants Since January 21st


Posted originally on the conservative tree house on May 2, 2022 | Sundance 

May 2, 2022 | Sundance | 202 Comments

The scale of the illegal alien influx into the United States is starting to get more attention.  One of the reasons for the increased spotlight is the scale of the numbers DHS is forced to admit.

In this brief video segment {Direct Rumble Link} DHS Secretary Alejandro Mayorkas admits since January 21st: 836,000 released illegal aliens, plus 207,000 unaccompanied children (UAC’s), plus 200k to 400,000 that got away and avoided detention.  Add that up and we have 1.3 to 1.6 million illegal aliens through the southern border in the last three months.  WATCH:

That 1.3 to 1.6 million DHS admitted estimate is since January 21st.  The general scale is around 500,000/month.   That scale aligns with the DHS projections of 18,000 per day moving forward after Title 42 is dropped.  18,000/day equals 500,000/month.

There’s no reason to believe the numbers were less in the month of January, so we can add another 500k to the currently admitted number of 1.3 to 1.6 million.  Putting the current year illegal alien releases around 2 million through the end of April, with a projected 4 million more to come this year.

That’s a total of 6 million illegal aliens in just 2022.   The current illegal alien population, already inside the United States, is well north of 40 million, likely closer to 50 million.

The 2022 Election, Here’s Everything You Need to Know About DC Republicans in 30 Seconds


Posted originally on the conservative tree house on May 2, 2022 | sundance

I don’t need to add anything to this.  Page 14 of my unpublished wisdom book says: the space between words is the most important sound you will ever hear when listening to people positioning for influence or affluence.  Learn how to hear what they don’t say, and others will think you are wise beyond imagining.

Hit play and just watch for 30 seconds. Prompted:

NOTE:  James Comer from the state of Kentucky (think Mitch McConnell) was specifically installed by the GOPe as the ranking member of the House Oversight and Govt Affairs Committee (replacing Jim Jordan, June 2020), as a proactive move by the DeceptiCons, for exactly this insurance policy.

If Republicans get the House in the mid-terms, Comer becomes Chairman of the House Oversight Committee.   Do you remember the concept of “Chaff and Countermeasures”?   Fast-n-Furious, IRS targeting, etc.  James Comer is specifically installed to block and wreck any House oversight effort into FBI, DOJ and Biden corruption.  It’s likely Comer has a zipper problem that the Fourth Branch know about.

Senator Ron Johnson – Fox Host M.Bartiromo – Rep James Comer

Sunday Talks, Samantha Power Notes Scarce Food Presents Opportunity to Enhance Larger Goals of Climate Change and Other Weird Stuff


Posted originally on the conservative tree house on May 1, 2022 | sundance 

If you are not familiar with Cass Sunstein’s wife, Samantha Power, I would suggest spending some time on any search feature of the internet.  Power is the archetype ideological traveler within the academic peer group of the Obama team.  Former U.N. Ambassador Power is the person who takes the ideological theory [example Responsibility to Protect (R2P)], and then constructs the mechanisms and network to turn theory into applicable policy.

Samantha put down the filtered Brazilian rainwater coffee this morning and gave a few interviews, that are rather telling of what is going on in the background of the Biden administration.  Discussing Ukraine {Direct Rumble Link} Power let it slip that the absence of industrial fertilizer is a good thing because in the spirit of “never letting a crisis go to waste,” the transition of food growing to more “sustainable farming” through organic fertilizer is a key transition for the bigger picture issue of Climate Change.  WATCH:

Samantha is the prototype backpack, academic, Birkenstock traveler who all model U.N. types view as the person to emulate.  She’s a sustainable algae  cake eater, who bridges the space between the Kennedy Center ballroom crowd and the cross-legged, sitting on the grass, NYU commons activists.

A very dangerous mind, with no practical skills beyond very dangerous ideological theory.

The 2011/2012 crisis in Libya represents an outcome of Power’s R2P theory applied.  Create equitable freedom for the animals by killing the Zookeeper and removing the cages.  The tree dwelling primates are fine, at first, until the big cats run out of deer to eat.  The only way to prevent primate slaughter is to supplement and satiate the cats with alternative meat.  The primates are now forever dependent on foreign intervention for survival…. and yet the free range believing ideologues take no responsibility for the natural mess and absence of ruminants.

Samantha Power, now in charge of USAID (U.S. Aid and International Development) and a host of Non-Governmental Agencies (NGO’s) who rely on USAID, turns her meddling focus from the middle-east toward the crisis in Ukraine.

Notice how she says weird shit like, [02:53] “what we do Margaret, is to work though our implementing partners. So, er, we have, um, folks who are indirectly on the ground, but who are receiving U.S. taxpayer resources in order to provide everything from flak jackets and helmets, again to those safehouses etc.”

How does a person become “indirectly on the ground” in Ukraine, in order to receive funds?

Oh wait, that’s what we need the U.S. government information, disinformation and language approval bureau to figure out before we can start to talk about it…. or something.  Seriously, watch this interview carefully and spot the bureaucratic globbledyspeech.  WATCH:

.

Sunday Talks, Homeland Security Secretary Mayorkas Says DHS Prepared to Facilitate Import of 500,000 Illegal Aliens Per Month


Posted originally on the conservative tree house on May 1, 2022 | sundance 

Skipping past the discussion of the DHS “disinformation board,”….. While appearing on an ironically named CNN broadcast “The State of Our Union”, Homeland Security Secretary Alejandro Mayorkas tells John King’s ex-wife, that for several months (“since Sept 2021″) DHS has been preparing to start handling and processing 18,000 illegal aliens per day (540,000/mo) as soon as CDC Title 42 is lifted.

If DHS estimates are accurate, between now and the November mid-term election, DHS will import an additional 3,000,000 illegal aliens from various nations around the world, through the U.S-Mexico border.

Cumulatively, this arrival estimate will put the number of illegal aliens arriving in the United States during Joe Biden’s first two years in office somewhere north of 10 million people. For scale, that’s an imported group of illegal aliens three times the size of the population of Mississippi.  WATCH:

If his own estimates are correct, in combination with prior arrivals, the aggregate number of illegal aliens will easily exceed 50 million by the end of the year; more than twice the population of Pennsylvania and Ohio combined.  Illegal aliens living in the U.S. will exceed 15% of the total population.

Approximately one-third of the United States workforce will be illegal aliens.

What do you think that scale of illegal labor does to wages?

18,000/day equals 540,000/mo.