Category Fossil fuel Energy

Aug 25 2022

Horrific Biden Consequence, 20 Million American Households Behind on Electricity Bills, Pending Shutoff


Posted originally on the conservative tree house on August 24, 2022 | Sundance

Long-term CTH readers might remember in 2014 when President Obama claimed U.S. families had been paying too little for electricity for too long.  As soon as Joe Biden took office, he began implementing the Green New Deal energy policy that, (a) directly forces higher costs for energy; and (b) is now creating massive problems.

In July I noted my own electricity bill had jumped 28% in a single month.  That bill was followed by another almost identical increase this month.  A review of the Consumer Price Index (CPI) for July [Data Here] shows that nationally the same thing is happening.  The year-over-year electricity price has increased 15.2%. However, worse still, the July increase alone was 1.9%, which figures to an annualized rate of 22.8%.

When the growth rate of monthly increase is exceeding the year-over-year result, that means future higher prices are coming.  This is a serious problem that cannot be overstated. Already struggling with a doubling of gas prices, massive food price increases at the grocery store and the pain of all costs for goods far outpacing any rate of wage increase, this type of uncontrollable increase in price of electricity is going to hit the middle class hard.

Steve Cortes calls this the backside of the Biden created inflation hurricane.  The backside of a hurricane is the worst because it hits from the opposite direction upon already weakened infrastructure.

The hurricane metaphor is apt because any increase in energy costs will be accompanied by the simultaneous arrival of another wave of food inflation, as the massive increases in field and crop prices start to feed into the food supply chain headed to our forks next month.

Making matters that much worse, Bloomberg is now reporting that 20 million households are now behind in their utility bills, specifically electricity bills, and the moratorium on shut offs has ended.  [Paywall Article]  Steve Cortes has written about the issue on his substack [Here].

One in six U.S. households, that is tens-of-millions of Americans, are now facing having their electricity turned off due to lack of payment.  It is certainly understandable how this horrific outcome would happen. Joe Biden’s energy policies are destroying working class families with unsustainably higher prices.

20 million households is a catastrophic level of utility default.  This is a serious issue with major social implications created by the desperation of those families.  Middle- and lower-income families cannot survive this level of financial pressure.

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Rents are behind. Mortgages are behind.  Car payments are behind. And now this report on utility bills.

Steve Cortes appeared with Steve Bannon to discuss {Direct Rumble Link} – WATCH:

Aug 25 2022

Treehouse Tips


Posted originally on the conservative tree house on August 24, 2022 | sundance

**Bumped, 8/23/22 8:30pm ET**

My jaw came near the floor when I opened July’s electricity bill to find a notification of a 28% increase in electricity rates, effective immediately.  An increase of 28%…. just like that. This month, August, even higher with less use.

After the initial shock wore off, I started thinking about what this means to the working-class people in my community.

Already struggling with a doubling of gas prices, massive food price increases at the grocery store and the pain of all costs for goods far outpacing any rate of wage increase, this type of uncontrollable increase in price of electricity is going to hit hard.

In the past we have used CTH threads to spotlight the smart thinking and resourcefulness of Treepers from all walks of life.  A discussion thread where people can share tips, things that can actually be done, to help offset the financial pressures during severe economic times.  I think we may all benefit from starting a series of post like that again.

Let us share our wisdom and experience again.  There are many thousand who will benefit, as I have always done, from reading your smart tips and suggestions.

What ideas, tips and suggestions do you have to help people save money on ordinary life and living expenses?

These are painful economic times and the stress that is caused by financial worry is some of the most horrific family stress that people can face.  Let us come together with tips as a community to help each other.   No suggestion is too small.  What advice do you have that can help people save money on monthly expenses?

During one of our previous discussions someone gave a tip about putting a clean dry towel in the clothes dryer as a way of cutting down drying time and energy used.  I tried it and jumping ju-ju-bones it worked fantastically.  Simply putting a dry towel into the dryer when you add the wet clothes from the washer reduces laundry drying time by around 25%.  Not only does that save time, but it also saves money – and it was so simple.

So, what suggestions do you have?   Tips about anything and everything that might lower the monthly cost of ordinary life. No tip is too small. No suggestion is too odd.  Your advice can/will make a difference.

Please use the comments section to drop your advice.

Thanks again for being part of our fellowship.

Love to all.

Aug 8 2022

American Household Debt Surpasses $16 Trillion


Armstrong Economics Blog/USA Current Events Re-Posted Aug 8, 2022 by Martin Armstrong

American household has reached a new high, according to a report by the Federal Reserve Bank of New York. Total household debt has surpassed $16 trillion for the first time in American history. Americans have taken on $2 trillion in additional debt since the pandemic. Aggregate household debt balances rose by $312 billion in Q2 2022 alone, marking a 2% increase from Q1.

Mortgages were the largest contributing factor to the post-pandemic uptick after rising by $207 billion to $11.39 trillion. Americans have been relying more on credit to make purchases amid inflation, and credit card balances have spiked by $46 billion last quarter. Non-housing balances saw the largest uptick since 2016 after increasing by $103 billion. Auto loans saw a $33 billion rise as the cost of autos remained at a high.

Delinquency on debt “increased modestly” in all categories. Around 95,000 people faced bankruptcy in Q2 2022, which is still near historic lows. Of the $758 billion in new mortgage debt accumulated in the last quarter, 65% is held by people with credit scores over 760. Outstanding student loan debt reached $1.59 trillion last quarter, 5% of which was delinquent.

People may be able to pay off their debt now, but as inflation and interest rates rise, that will become increasingly difficult. While mortgage debt is no cause for concern, the over-reliance on credit purchases will not help Americans lower debt. Inflation must come down for the people to maintain their quality of life.

Aug 8 2022

President Trump CPAC Introduction Video


Posted originally on the conservative tree house on August 7, 2022 | sundance 

This was the introduction video for President Donald Trump before his CPAC speech. {Direct Rumble Link} Enjoy

Aug 7 2022

Nature v Humans


Armstrong Economics Blog/Opinion Re-Posted Aug 7, 2022 by Martin Armstrong

Sorry, I took a break with the family and went to Yellowstone National Park. My father took me there 60 years ago and it was so spectacular. I always remembered being there as a kid. So I suppose it is a family tradition now knowing that probably my grandchildren will take their children there. So, while empires, nations, and city-states rise and fall throughout history, despite the climate zealots that blame everything on humans as if we are a plague that should be exterminated, nature endures.

Even the Bisen are not afraid of cars. If they decide to eat the grass on the side of the road and block traffic, they have the right of way. Yellowstone is off the grid. Cell phone reception is very spotty and if you stay at the famous Old Faithful Inn, there is no air conditioning or Wi-Fi. So prepare to ruff it. You are really disconnected from the world.

Aug 7 2022

President Trump Keynote Address CPAC 2022 – 6:30pm Livestream


Posted originally on the conservative tree house August 6, 2022 | sundance 

President Trump will be delivering the final keynote address to the CPAC audience in Dallas, Texas today.  The anticipated start time is 6:30pm ET.

Livestream below {Direct Rumble Link}:

Aug 5 2022

Geopolitical Nightmare


Armstrong Economics Blog/Geopolitical Re-Posted Aug 5, 2022 by Martin Armstrong

My mother died at 99. She had her wits about her til the end. Not everyone loses their mind. Henry Kissinger, I regard as the finest geopolitical analyst in history. That person in the Biden Administration who is the real president writing the scripts is only interested in climate change and the Great Reset. They pushed the sanctions against Russia, which have divided the world and ended the global economy. They are already preparing ways for us to eat bugs. Cricket powder is starting to show up in the food supply.

Meanwhile, there is absolutely no evidence that any sanction against a country has ever worked. Iran has been under sanctions for as long as I can remember. These morons are pushing the world into a serious geopolitical confrontation that will not end nicely. We have reached the 8.6-year turning point from the 2014 Ukrainian Revolution. This does not speak well for what we face in 2023. All I can say is I really hope the Democrats do not allow illegal aliens to vote. I fear that will spark a serious uprising, and then you will get a REAL insurrection — not a fake January 6th event to create publicity for the November 2022 election.

Aug 5 2022

Senator Kyrsten Sinema Agrees to Senate Green New Deal Spending and Tax Proposal After Negotiating Minor Changes


Posted originally on the conservative tree house on August 5, 2022 | Sundance

Arizona Senator Kyrsten Sinema has announced her support for the senate climate change spending and tax proposal after some modifications to the new taxation.

To support the hedge fund donors, Senator Sinema insisted the carried interest loophole tax provision be removed and instead replaced with a corporate tax on stock buybacks.  Any time a corporation wants to buy back their own shares of stock, they will now pay the U.S. government a tax for doing so; at least that’s the ¹intent.

[¹Note: taxing shares of company stock will never work, because that’s exactly what shell companies were designed to avoid.  Set up a child shell company to purchase the stock and the parent company doesn’t pay taxes on the child’s purchase.  It’s a shell game]

Additionally, according to reports, there is some kind of agreement to modify the 15% corporate minimum tax.  Details unknown.  Bottom line, Senator Sinema now supports the $700 billion climate change spending and tax proposal.

“We have agreed to remove the carried interest tax provision, protect advanced manufacturing, and boost our clean energy economy in the Senate’s budget reconciliation legislation,” Sinema said, signaling that she plans to vote to begin debate on the bill.  “Subject to the parliamentarian’s review, I’ll move forward,” she said.  (link)

Aug 4 2022

The Inequality of the World Economy


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

QUESTION: Mr. Armstrong; I have followed your comments on the future of inflation for the last five years at least since a friend attended your conference. I must say you have alone singlehandedly defeated every economic theory I have studied.

Since the start of this pandemic in 2020, most prominent neoliberal economic voices warned of the danger that the spending would create inflation. The U.S. spent more as a share of GDP than any major economy on this planet. There was a mix of direct payments to citizens, forgivable loans to small businesses, and then new pandemic-related federal spending. Yet the data showed inflation in the United Kingdom has hit nearly 10% and European inflation rates were higher. Every G7 nation had higher rates of inflation than the United States. This called into question that there was a possible disconnect between the rationale behind tightening U.S. monetary policy and the actual causes of ongoing inflation rises.

Your favorite economist, Larry Summers, from nearly the beginning of that fiscal response, warned this would trigger inflation. At first, he seemed correct. However, by the start of 2022, U.S. inflation did outpace the average for OECD nations. Yet here in 2022, inflation externally to the U.S. is now surpassing all U.S. levels, and the forecasts of the neoliberal economic thought are in open to doubt as to their outcome.

Your argument against the Quantity Theory of Money appears to be vindicated. Since the U.S. had printed much more money than other economies, then how was it possible that the U.S. would have the lowest inflation rates? The discussion in some circles has tried to explain that at first, the U.S. stimulus remained has been overshadowed by non-monetary factors such as shortages. That has been your expectation years in advance.

Now even wages have risen dramatically ever since the end of unemployment benefits to adjust for the rise in inflation. Yet employment has still not recovered for prime-age workers compared to 2019 levels.

I understand you are not interested in teaching at a university. Perhaps it is time for you to write a textbook to provide a better view of the complexity of the world economy. We are obviously in new territory.

Would you care to explain how inflation is significantly higher outside the United States despite the fact that the U.S. expanded its money supply greater than any other nation?

SK

ANSWER: I know this is a very complex question that most people, no fewer politicians, want to think about. Aside from COVID and the supply chain, Biden & the Green’s attack to end fossil fuels is just totally insane. The US was self-sufficient under Trump. Biden has done everything to undermine that and they have no idea what they are doing. They are making the US economy vulnerable. However, outside the USA, nations are NOT self-sufficient, and the further you move down the rank, the greater it is that their population is living hand to mouth.

Europe has no energy. This push by the Greens in Germany and Austria is just completely insane. Remove Putin in Russia, and you will get a hardline replacement who will see that this is the moment to take Europe, and Europe tried to invade Russia twice before. Cutting off the energy and the Greens have made Europe vulnerable, which the Neocons and NATO salivate over finally getting to use their toys.

Gasoline in Europe sells by the litre. One gallon = 3.7 liters. Since gasoline in Europe is about €2.07 Euros, now €7.82, which is now about $8.21 up to $10 a gallon compared to the US national average of $4.642.

The dramatically higher cost of energy in Europe is driving inflation substantially higher in Europe because it also filters over into the cost of transporting everything, right down to food. The inherent problem we always have is that we tend to judge everyone else by ourselves. The world is really different outside the United States. In Japan, the price of gasoline per gallon works out to ¥646.548. Japan, instead of taxing gasoline, the government subsidizes it by about ¥100 per gallon. Thus, the consumer pays about the same as an American.

The higher the fuel cost, the higher the inflation, at least until the Greens force everyone to ride bicycles, stop heating their homes in winter, and truckers revert back to horse and wagons.

While we have Klaus Schwab claiming inequality is a huge problem, and we need to return to his world of equality, he obviously never considered anyone outside of his own circle. The world is vast. Perhaps we should take all his wealth so he can be equal in wealth to a goat herder in Africa. I’m sure that would solve all the problems of the entire world.

Aug 4 2022

When Will the Baby Formula Shortage End?


Armstrong Economics Blog/Gov’t Incompetence Re-Posted Aug 4, 2022 by Martin Armstrong

It has been about a month since Abbott Laboratories reopened its formula plant in Michigan, but the US is still in desperate need of baby formula. The plant ceased operations in February after certain formulas were recalled for containing bacteria after infants became sick. Abbott had a huge 40% stake in the formula market within the US. The production plant was supposed to resume operations in June but this was pushed back a month due to flooding in the area. Certain states saw out-of-stock rates near 60% in July, but the national average currently sits at 30%.

The White House secured 17 Operation Fly Formula missions and imported enough powder to make 61 million bottles. The Defense Production Act was revoked to remove some tariffs, but this was a temporary fix. US consumers need enough formula for 65 million bottles per week. Experts now believe that the shortage will last into the fall months.

The Food and Drug Administration (FDA) failed to act in a prompt manner. Some of the red tape and regulations are to blame. FDA Commissioner Robert Califf testified in July, displacing blame from the FDA, and saying that they simply did not know. “No law requires manufacturers of these products to notify FDA when they become aware of a circumstance that could lead to a shortage of these products. Without this information, the Agency may have little or no insight as to when a major shortage may occur, preventing us from taking potential mitigation efforts until a crisis becomes apparent,” Califf said. He believed that formula availability to normalize in up to eight weeks.

An investigation shows that the FDA was first notified of formula contamination in December 2021. In fact, 128 complaints were filed between December 2021 and March 2022. The FDA certainly was aware of the contamination before they took action. The White House also took too long to respond as Biden did not invoke the Defense Production Act until May 2022, when 40% of formula was unavailable. This issue should have been solved months ago but persists due to government incompetence.