The World is Laughing at America


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

Above is a clip from “Studio 22,” a program on the Saudi government-owned television network MBC. The skit portrays US President Biden as mentally incompetent, repeatedly fumbling his words, forgetting names, and falling asleep behind the podium. Biden’s declining mental health is apparent every time that he is permitted to speak publicly. This is how other nations now view the US, as everyone sees there is a puppet at the helm. Biden makes America appear weak on the international stage.

The skit is far from a comedy sketch. Joe Biden has referred to Vice President Kamala Harris as the “First Lady,” as portrayed on the Saudi program. Recently he called Michelle Obama the former vice president and referred to Ukrainians as Iranians. Let us not forget how his “gaffe” nearly caused World War III when he declared that Putin needed to be removed from power. The White House simply retracts his statements and makes excuses for his erratic behavior.

Even with pre-scripted cards, Biden continually forgets the topic at hand and has been filmed repeatedly being redirected by his handlers at various functions. Even Secretary Psaki is jumping ship as she can no longer deflect the truth. The entire world sees the leader of the United States as a complete fool. Yet, he was allegedly the most popular presidential candidate and secured a record number of votes. The Democrats chose the wrong puppet; besides his slim margin of supporters with cognitive dissonance, no one believes that he is leading the nation.

The Supply Chain Crisis Will Worsen


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

The supply chain issues across the world are continually worsening due to government mismanagement. It seems as if there are sinister intentions at play, as these new restrictions seem to be a deliberate attempt to destroy the global economy.

California’s far-left politicians only implement laws to hurt the people. The California Air Resources Board (CARB) recently revised its Air Resources Board Truck and Bus Regulation:

“The Air Resources Board (ARB) Truck and Bus Regulation requires diesel trucks and buses that operate in California to be upgraded to reduce emissions. By January 1, 2023, nearly all trucks and buses will need to have 2010 model year engines or equivalent. Compliance requirements are currently in effect.”

Therefore, by January, all trucking companies will need to upgrade their trucks to newer models or slim down their fleets. Joe Rajkovacz, director of governmental affairs and communications at the Western States Trucking Association, said that the new law will eliminate 80,000 commercial trucks from operating, accounting for 17% of the trucks in the state. “We in the industry know that if you think there was a supply chain problem over the last year, wait until you take this many trucks out of the marketplace that are not replaceable. You can be talking about something we as a country have never seen before,” he stated.

CARB continues to deny that removing 17% of the trucking fleet will impact the supply chain crisis. “There is simply no evidence to support any claim that the current supply chain issues have any connection to the state’s effort to clean up California’s trucks emissions,” a representative stated.

Trucking companies are pleading for this ruling to be repealed as they simply cannot afford new trucks. Small trucking companies will go under.

Peter Navarro, former manufacturing adviser to former President Donald Trump, called the situation “Woke microeconomics.” Reducing fossil fuels with no other alternative available seems appealing to the far-left. They do not realize that their save the environment plight cannot dismantle the industrial world without repercussions. Woke microeconomics will lead to our downfall.

German Inflation 22.6% – The End is in Sight


Armstrong Economics Blog/European Union Re-Posted Apr 13, 2022 by Martin Armstrong

The wholesale prices in Germany rose at a record pace in March. Compared to the same month the previous year, wholesale prices jumped by 22.6%, as the Federal Statistical Office announced on Tuesday in Wiesbaden. This is the highest increase since calculations ever began in 1962. In February, the rate was already high at 16.2%, which has been surpassed here in March. Month-on-month, wholesale prices rose 6.9%, which is yet another record increase.

Our models are pointing to serious trouble ahead for Germany and this poking Russia is all intended as a diversion from the collapse of the European economy that is underway. The negative interest rates since 2014 have wiped out the pension funds and proven that the central bank can no longer control the economy. Add to that, the braindead COVID restrictions which have dealt a serious blow through the heart of the supply chain, and we have a recipe for total economic disaster which is being reflected in the inflation rates which then leads to civil unrest.

I have stated many times, we have the WORST possible crop of world leaders I have ever witnessed in my lifetime. There is not a single character that I would be able to sit down and have an intelligent conversation with. Germany appointing Jenifer Morgan in charge of their environmental policies and the intent was to make her their Secretary of State is just astonishing. What is her role? Tell Putin to turn off his tanks because they create CO2?

These climate zealots have managed to destroy the world economy in just two years. Never in the history of humanity has there EVER been such stupidity from those in power. They should admire their heads in the mirror every day, for if history repeats, they will be dragged from their palaces and their heads might be adorning spikes with cheers of vindication.

It is well known that the first casualty of war is the truth, and nothing sorts out the lies more than troops crossing political borders. Hence, they also say that history is written by the victors. Ever since COVID, we have witnessed a rising trend of civil unrest politicians have been working hard to deliberately create war with Russia all cloaked in their real objective of controlling the planet. Ever since this intended war to poke the Russian Bear, there’s been an acceleration of every conflicting agenda on the world stage. This has crashed the world economy, ended Globalization, and divided the world into US v THEM with the only resolution being armed conflict. Our World Leaders need a war with Russia and then will turn on China as they think threatening China with sanctions will prevent them from joining Russia against the West. This will fail – China is not that stupid. Blaming the other guy is always the way to war. They need to demonize the enemy to inspire hatred that they use to manipulate war.

CNBC Forced to Tell the Horrible, Terrible, Bad, Bad Results of Their Biden Performance Poll


Posted originally on the conservative tree house on April 13, 2022 | Sundance

CNBC commissioned a poll by Hart research and associates, a friendly outfit for the left.  Unfortunately, that means CNBC then needed to tell everyone what the results were [Full Poll pdf Here].  That task fell to CNBC’s Steve Liesman; an appropriate name given the task at hand.

The irony doubles when you remember this was the same CNBC pundit who refused to accept the horrible economic data that began surfacing last fall.  There was even a public broadcast where Liesman said the BLS statistics had to be wrong, because the results were so horrible.  A few months later, and here he is explaining how the country now feels about Joe Biden.   WATCH:

(CNBC) – […] The pessimism is clearly dragging on Americans’ opinions of President Joe Biden. In fact, nothing looks to be working in the Biden presidency from the public’s viewpoint.

The president’s approval rating sank to a new low of just 38%, with 53% disapproving. Biden’s -15% net approval rating is measurably worse than his -9% approval in the CNBC December survey. What’s more, his approval rating on the economy dropped for a fourth straight survey to just 35%, with 60% disapproving, putting the president a deep 25 points underwater. (article link)

Biden Calls Russia Military Operation in Ukraine “Genocide”, Commits Additional $800 Million in Weapons Today


Posted originally on the conservative tree house on April 13, 2022 | Sundance

Yesterday in Iowa, Joe Biden called the Russian military operation in Ukraine a “genocide,” which has a very specific set of legal definitions to it.

When asked if he had seen enough evidence to support that statement Biden responded:

“Yes, I called it genocide.  It has become clearer and clearer that Putin is just trying to wipe out the idea of even being — being able to be Ukrainian.  And the amount — the evidence is mounting.  It’s different than it was last week.  The — more evidence is coming out of the — literally, the horrible things that the Russians have done in Ukraine.  And we’re going to only learn more and more about the devastation. And we’ll let the lawyers decide internationally whether or not it qualifies, but it sure seems that way to me.”  (link)

Several ground reports from European journalists indicate the U.S. military is running all of the combat operations inside Ukraine. A French reporter said on Euro News, “I thought I was with the international brigades, and instead I was facing the Pentagon.”  Now today, Joe Biden announces he is arbitrarily sending U.S. combat helicopters into the conflict.

[Tweet Link]

(WHITE HOUSE) – I just spoke with President Zelenskyy and shared with him that my Administration is authorizing an additional $800 million in weapons, ammunition, and other security assistance to Ukraine.

The Ukrainian military has used the weapons we are providing to devastating effect. As Russia prepares to intensify its attack in the Donbas region, the United States will continue to provide Ukraine with the capabilities to defend itself.

This new package of assistance will contain many of the highly effective weapons systems we have already provided and new capabilities tailored to the wider assault we expect Russia to launch in eastern Ukraine. These new capabilities include artillery systems, artillery rounds, and armored personnel carriers. I have also approved the transfer of additional helicopters. In addition, we continue to facilitate the transfer of significant capabilities from our Allies and partners around the world. 
 
The steady supply of weapons the United States and its Allies and partners have provided to Ukraine has been critical in sustaining its fight against the Russian invasion. It has helped ensure that Putin failed in his initial war aims to conquer and control Ukraine. We cannot rest now. As I assured President Zelenskyy, the American people will continue to stand with the brave Ukrainian people in their fight for freedom. (link)

White House spokesperson Jen Psaki was asked about this escalation earlier today:

.

The Biden administration is all-in for this Ukraine proxy war, taking all actions to highlight a zero-sum position.

Fed Governor Christopher Waller Predicts We Have Reached Peak Inflation, Here Is What they Will Not Say


Posted originally on the conservative three house on April 13, 2022 | Sundance

Fed Governor Christopher Waller appeared on CNBC to announce we have reached peak inflation, and things will moderate from here.  All of these fed moves are political moves, not monetary policy-based moves. Here’s the thing they will never admit to the non-institutional investor.

The fed has been painfully slow to raise interest rates on purpose.  They did not make a mistake.  The reason for their delay is they needed to wait for the beginning of the first 2021 inflation wave to cycle through before they raised interest rates.  It’s a game of mirrors that almost no one sees.  WATCH:

The rate of inflation will drop once the statistical year-over-year comparisons reach the same moment in the prior year.  The fed will raise interest rates in May and then use the June inflation rate decline as a false talking point to highlight how their policy is working.  They wait for May, because they need to wait for the calendar, nothing else.  Inflation is measured as the percentage of change from the prior year.  By waiting until the inflation is measured against the first wave of rising prices, it will give the illusion of a decline in inflation.

So that’s why they waited.  But here’s the worse part….

All of these U.S. Fed monetary policymakers are in full ideological alignment with the global and central bankers.  They are all following the same Build Back Better agenda and policy instructions.

All of bankers know the shift from ‘dirty energy’, coal, oil, natural gas, will create inflation.  All of the bankers know there is no economic bridge within the plan to shift from oil to their unicorn dust.  All of the bankers know that shutting down oil exploration as a matter of western unified policy will, as a factual matter, destroy the economic systems that rely on energy….. which is to say everything.

All of these bankers know the severity of the inflation crisis this energy shift creates.   None of them do not know.

Everything they are doing is coordinated to assist the climate change agenda.

That’s what this is all about.

Everything is politically motivated.

CDC Announces 15 Day Extension to Federal Transportation Mask Mandate


Posted originally on the conservative tree house on April 13, 2022 | Sundance

The CDC announced today {SEE HERE} they are extending the federal emergency order requiring masks on planes, trains and public transportation for a period of 15 days, ending May 3rd.

The mask mandate was set to expire April 18. However, the Biden administration will keep the requirement in place for another 15 days under the justification of a rise in COVID-19 cases driven by the new BA.2 sublineage of the Omicron variant.

(Press Release) – […] The CDC Mask Order remains in effect while CDC assesses the potential impact of the rise of cases on severe disease, including hospitalizations and deaths, and healthcare system capacity. TSA will extend the security directive and emergency amendment for 15 days, through May 3, 2022. (link)

There are contradicting claims on the benefits and/or futility of wearing masks to avoid spreading the COVID-19 virus.  Several scientific studies have found no significant benefit; however, the theatrics of mask wearing is now a litmus test for global virtue.

Philadelphia, Pennsylvania, has recently announced a new indoor mask mandate for their extended metropolitan area.  Fauci soundbite below.

Producer Price Index Sets New Record at 11.2 Percent Wholesale Inflation, Highest Rate Ever Recorded


Posted originally on the conservative tree house on April 13, 2022 | Sundance 

he “Producer Price Index” (PPI) is essentially the tracking of wholesale prices at three stages: Origination (commodity), Intermediate (processing), and then Final (to wholesale). Today, the Bureau of Labor and Statistics (BLS) released March price data [Available Here] showing a dramatic 11.2% increase year-over-year in Final Demand products at the wholesale level.  This is the fifth consecutive month with the highest rate of inflation the PPI ever recorded.

The single month increase in wholesale prices of 2.3% was driven by inflation built into the supply chain at every level that shows up in the final wholesale price.  Those price increases then get passed along to consumers along with the additional costs for warehousing, transportation and delivery.  I modified Table-A (FINAL DEMAND) to take out some of the noise.

Wholesale prices of goods jumped 2.3 percent in March, and the wholesale price of food products jumped 2.4 percent.  The total demand inflation compared to last year is 11.2 percent, the highest rate ever recorded since the PPI tracking was first started.

The total final demand monthly calculation (1.4%) is lower than the final demand goods (2.3%), because final demand services are offsetting.  You may remember the discussion/analysis about prices beginning to stabilize after this month due to a contraction in demand for goods and services.  I see support for that thesis within this data.

The three phases of wholesale product creation: (1) origination, (2) intermediate, and (3) final, cycle through the economic analysis in reverse chronological order.  Roughly speaking, the flow of goods quantified is done in 30-day sequences.  Final demand this month is comparing to final demand in March 2021.  The intermediate demand goods this month will become final demand goods next month (April).

The rate of inflation behind this set of final demand goods is beginning to soften.  See Table B, Intermediate goods.  Again, modified to take out the noise:

While the yearly comparison for both processed and unprocessed intermedia goods is eye dropping, in the unprocessed intermediate demand goods, we are starting to see a lessening of monthly price increases.

In essence, prices have been rising so fast and for such an extended period of time, that we are now cycling through the rate of increase and starting to compare it to last year when the rate of increase was originally going high.  As a consequence, the rate of price increase will likely lessen, even though the actual price may still keep climbing within the manufacturing process.

The price of raw materials, and the wholesale energy costs to process those materials into finished goods, are still rising.  In addition to the consumer prices reported yesterday, this wholesale price data is showing the most recent increases (March) in fuel and transportation costs.  For the next report these figures should now plateau.

♦ BOTTOM LINE – We have not yet reached PEAK INFLATION – However, the price increases from wholesalers to retailers are now at parity.  The increased price of things coming into the supply chain are now at similar rates of increase when compared to the stuff on the shelves.

Inflation from field to fork is now fully matriculated and embedded in the total economy as a result of two massive price waves (July to October 2021 and November to March 2022).  Those prices will never fall.

Highly consumable goods like food, fuel and energy will remain at approximately the price today for a period of around five months, then we will see the third wave kick in as the new higher harvest prices hit the processors in late summer.

The prices for non-essential durable goods, like cars, electronics, appliances etc. from this moment forth will now be determined by demand.   Highly sought after goods will increase in price as more customers chase fewer products.  However, ordinary or widely available durable goods will likely start to come down in price very soon as inventories climb because consumer spending has prioritized and dropped non essential goods from their shopping lists.

To put it more succinctly:  The stuff we need will cost more. The stuff we don’t need will cost less.

Let’s Go Brandon

Mitch McConnell Warns About Republican Voters Supporting Unacceptable Candidates


Posted originally on the conservative tree house on April 13, 2022 | Sundance 

DeceptiCon ruler Mitch McConnell is the ultimate abuser in the relationship of the Republican Party to its base of voters.

During a series of remarks at a Kentucky Chamber of Commerce convention Tuesday, the Senate Minority Leader went right back to his familiar pattern of telling voters they should listen to who he says is acceptable or not acceptable as a 2022 Republican candidate.

Those of you who have walked the deep political weeds with us, will remember the battles against McConnell’s uniparty wing in the 2010, 2012 and 2014 races.  This is where McConnell and McCain famously called the base of the GOP “whack-o-birds” and “jihobbits” for supporting unsanctioned Senate candidates like Scott Brown, Ted Cruz, Mike Lee, Ron Johnson, Tom Cotton, Rand Paul, Marco Rubio and more.

(KENTUCKY) – […] McConnell, speaking at a chamber event in Kentucky, said that 1994 had been the best year for Republicans and that the atmosphere heading into November “is better than it was in 1994.”

“From an atmospheric point of view, it’s a perfect storm of problems for the Democrats,” McConnell said. “How could you screw this up? It’s actually possible. And we’ve had some experience with that in the past.”

“In the Senate, if you look at where we have to compete in order to get into a majority, there are places that are competitive in the general election. So you can’t nominate somebody who’s just sort of unacceptable to a broader group of people and win. We had that experience in 2010 and 2012,” McConnell added. (read more)

This guy is such a profound manipulator it is almost sickening.  After the 2008 election, the Democrats had a 60-seat majority. A veto-proof majority.  Mitch was the minority with 40 Republican senators in January 2009.  It was the Tea Party that changed it all around, starting with Scott Brown in December of 2009.

In the specific races McConnell points out in 2010 and 2012 were races where the Tea Party base of the GOP actually produced more seats for the Republicans, culminating in a successful majority reestablished in the Senate in 2014.  The Republicans did nothing with that majority and couldn’t even get rid of the Obamacare mandate which they campaigned on with eight years of promises.

Ukraine v Russian Empire


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

QUESTION: We elected Zelensky who promised to end the civil war. It looks like the West is telling him not to compromise and let the Russian section go.

DH (from Ukraine)

ANSWER: On Sunday, CBS News program “60 Minutes” aired an interview with Zelensky. I believe Zelensky is still claiming evidence of Russian war crimes, saying: “We are defending the ability of a person to live in the modern world.” Despite what the press says, this is a Proxy War against Russia and the US, along with the EU and Britain. They are quite happy to use the Ukrainian people as cannon fodder. There is no possible way all of these countries would allow Zelensky to address their own people UNLESS this was a Proxy War.

The Dnieper River which runs 1,423 miles and today is the border between Belarus and Russia, was also the border of Ukraine with Russia during the Tsarist Empire at the time of Mikhail I (1613-1645) of the Romanov Dynasty. Zelensky’s claims that Putin has invaded a sovereign nation are debatable. Eastern Ukraine today was assigned to it for administrative purposes during the USSR. It was never Ukrainian territory. It is very hard to see why it is worth killing your own people for a territory that has been occupied by Russians for centuries.

This is obviously a Proxy War, and despite whatever the press says, the West is using the Ukrainian people as the Vanguard in this battle against Russia. They cannot declare war on Russia legally, so they have used Ukraine. Zelensky seems happy to accommodate, blaming civilian deaths on Putin when he shared responsibility for this war.

In Crimea, the population is predominantly Russian and Tatars where there is a population of about 250,000, accounting for about 10% of the total.