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

BRICS Ministers of Finance Hold a Meeting – It Is Time to Replace Western Financial Trade Mechanisms and Remove The Dollar


Posted originally on the conservative tree house April 9, 2022 

This is not some grand conspiracy, ‘out there‘ deep geopolitical possibility, or foreboding likelihood as an outcome of short-sighted western emotion.  No, this is just a predictable outcome from western created events that pushed specific countries to a natural conclusion based on their best interests.

You can debate the motives of the western leaders who structured the sanctions against Russia, and whether they knew the outcome would happen as a consequence of their effort, but the outcome was never really in doubt.  Personally, I believe this outcome is what the west intended. The people inside the World Economic Forum are not stupid – ideological, yes, but not stupid. They knew this would happen.

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

The finance ministers of the BRICS alliance (Brazil, Russia, India, China and South Africa) have decided to create their own financial mechanisms to continue trade between nations of similar disposition.  Once the internal issues inside the BRICS alliance are resolved, and once the mechanisms are created, then other nations will be able to decide to join or not.  The great global cleaving will commence.

(Reuters) – Russia, hit by Western sanctions, has called on the BRICS group of emerging economies to extend the use of national currencies and integrate payment systems, the finance ministry said on Saturday.

[…] On Friday, Finance Minister Anton Siluanov told a ministerial meeting with BRICS, which consists of Brazil, Russia, India, China and South Africa, that the global economic situation had worsened substantially due to the sanctions, the ministry’s statement said.

The new sanctions also destroy the foundation of the existing international monetary and financial system based on the U.S. dollar, Siluanov said.

“This pushes us to the need to speed up work in the following areas: the use of national currencies for export-import operations, the integration of payment systems and cards, our own financial messaging system and the creation of an independent BRICS rating agency,” Siluanov said.

International payment cards Visa and MasterCard suspended operations in Russia in early March and Russia’s biggest banks have lost access to the SWIFT global banking messaging system.

Russia set up its own banking messaging system, known as SPFS, as an alternative to SWIFT. Its own card payment system MIR began operating in 2015.

[…] They were part of Moscow’s efforts to develop homegrown financial tools to mirror Western ones, to protect the country in case penalties against Moscow were broadened.

The finance ministry said BRICS ministers have confirmed the importance of cooperation in efforts to stabilise the current economic situation.

“The current crisis is man-made, and the BRICS countries have all necessary tools to mitigate its consequences for their economies and the global economy as a whole,” Siluanov said. (link)

For a deep dive on BRICS, as predicted by CTH, {SEE HERE}.  The bottom line is – the 2022 punitive economic and financial sanctions by the western nations’ alliance against Russia was exactly the reason why BRICS assembled in the first place.

The multinational corporate control of government is exactly what the BRICS assembly foresaw when they first assembled during the Obama administration.  When multinational corporations run the policy of western government, there is going to be a problem.

In the bigger picture, the BRICS assembly are essentially leaders who do not want corporations and multinational banks running their government. BRICS leaders want their government running their government; and yes, that means whatever form of government that exists in their nation, even if it is communist.

BRICS leaders are aligned as anti-corporatist.  That doesn’t necessarily make those government leaders better stewards, it simply means they want to make the decisions, and they do not want corporations to become more powerful than they are.  As a result, if you really boil it down to the common denominator, what you find is the BRICS group are the opposing element to the World Economic Forum assembly.

The countries run by multinational corporations are in Yellow, the countries who have not yet chosen a side are in GREY:

The BRICS team intend to create an alternative option for all the other nations. An alternative to the current western trade and financial platforms operated on the use of the dollar as a currency.  Perhaps many nations will use both financial mechanisms depending on their need.

The objective of the BRICS group is simply to present an alternative trade mechanism that permits them to conduct business regardless of the opinion of the multinational corporations in the ‘western alliance.’

WHO: COVID Vaccine Can Cause Hearing Loss


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

The skeptics were concerned about the long-term effects of the mRNA vaccines. “Safe and effective” was the slogan promoted to the masses as the major pharmaceutical companies refused to reveal their initial studies. We know that the vaccine can cause heart inflammation (myocarditis), menstrual changes, anaphylaxis, thrombosis, Guillain-Barré Syndrome, and even death.

The World Health Organization (WHO) is reporting on a new side effect: hearing loss. The WHO has recorded 367 cases of tinnitus and 164 cases of hearing loss. The Pfizer/BioNTech vaccine specifically was responsible for around 80% of reported cases, according to the WHO. Hearing loss is not currently listed as a side effect of the vaccine, and only the Janssen product has been flagged for causing tinnitus (primarily in women).

Yet, the Centers for Disease Control and Prevention (CDC) still asks people as young as five to take the “safe and effective” vaccine. I fear that additional ailments will present themselves as time goes on. Bottom line: these vaccines are not safe. Governments can no longer ignore this fact, and yet, they are continually forcing the masses to take countless doses of this poison.

“Trust the science!” Oh, sorry, what was that? I did not hear you.

Biden – Inflation – Risk to National Security


Armstrong Economics Blog/Opinion Re-Posted Apr 3, 2022 by Martin Armstrong

QUESTION: Hi Martin,
What do you think banks will do with mortgages if we continue experiencing high inflation and/or hyperinflation? Do you think we might be able to pay off a mortgage with gold if things get bad enough?

Marc

ANSWER: No! The contract is in dollars and that cannot be altered. There won’t be hyper-inflation for that takes place when the CONFIDENCE in government completely collapses. The shallow analysis of even the German Hyperinflation has created such a myth that inflation is the result of an increase in the money supply – WRONG!!!!!!

To set the record straight, the hyperinflation followed the Weimar Republic’s FORCED LOAN in December 1922 when they seized 10% of everyone’s assets and gave you a bond you can buy on Ebay. Once that took place, people would no longer accept German currency and exchanged everything for foreign currencies, art, rare coins, stamps, and real estate.

In 1925, when Germany had to issue a new currency, it was backed NOT by gold, but by real estate. The same human response took place in Zimbabwe and even Japan because the emperors would devalue the outstanding money supply to 10% of what it was valued out and issued their own coins at the new value. The people refused to accept Japanese coins turning to Chinese and bags of rice. Japan lost the ability to issue coinage for 600 years.

This inflation is NOT based on printing money. This inflation is based upon shortages of goods. The source is very different and this is not going to end well. Biden’s sanctions have undermined the entire world supply chain. We are all connected and that includes Russia and China.

To create even more deliberate chaos, the Biden Administration is now out to impose trade restrictions on China as well. U.S. Trade Representative Katherine Tai is advocating a dramatic change in the United States’s relationship with China. The Biden White House has concluded that trade with China should be altered to be a defensive economic posture rather than continuing under the Phase One trade deal brokered between the Trump administration and Beijing. Like everything else, whatever Trump did, Biden is going out of his way to reverse it.

This will only further increase inflation right into 2024 and destroying the world economy removes any incentive to work together. Once Biden destroys the economic foundation ties with China all to put pressure on the World Economic Forum’s Great Reset, it looks like all-out World War III will unfold after 2024. Biden and his entire family have been bought and paid for. I find it outrageous that the Democrats demand Justice Thomas recuse himself because of comments of his wife, yet Biden is perfectly fine dealing with China and Russia when they have poured millions into his family’s pockets.

Biden seriously needs to be REMOVED from office as a matter of National Security.

Finally, a White House Journalist Ask a Direct and Pertinent Question About Rising Prices and Inflation


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

Apparently, this question was asked by Jacqui Heinrich (Fox News) at the tail and of the White House presser.  The question is the first time this year that a stenographer for the regime has accurately put correct context on the inflation talking points from the White House.

As each datapoint from the economy has been reported, the White House has blamed Russia and Vladimir Putin for the bad economic data.  However, as Heinrich accurately states, none of the resulting impact from the Russian invasion of Ukraine has been quantified in the data.  That post Russian invasion data begins in March, will not surface until reports later this month.  WATCH:

Good question. Finally.

Russian forces capture Javelins


Posted originally on WorldWar3News on March 15, 2022 on Rumble

Gordon Chang weighs in on President Biden’s trip to Europe and if he can successfully drive a wedge between Xi and Putin.

CNN Highlights the Value of Ukraine Nazis to Defeat Vladimir Putin


Posted originally on the conservative tree house on March 31, 2022 

Following increased scrutiny of the Ukranian army after videos surfaced showing torture of Russian soldiers by the notorious Azov battalion {Go Deep}, CNN writes an article saying that not all Nazis are bad Nazis.

The article would normally be embarrassing for the same media outlet that has criticized their political opposition as “right-wing extremists” and “Nazis”; however, given the nature of CNN needing to promote the interests of the U.S. State Department, it is not surprising.

(VIA CNN) – President Vladimir Putin framed the Russian invasion of Ukraine as a “special mission” to protect Russian speakers from genocide at the hands of ​”neo-Nazis.” […] For the Kremlin, Exhibit A in this special mission is the far-right Azov movement, part of the military and political landscape in Ukraine for nearly a decade.

Azov’s military and political wings formally separated in 2016, when the far-right National Corps party was founded. The Azov battalion had by then been integrated into the Ukrainian National Guard.

An effective fighting force that’s very much involved in the current conflict, the battalion has a history of neo-Nazi leanings, which have not been entirely extinguished by its integration into the Ukrainian military.

In its heyday as an autonomous militia, the Azov Battalion was associated with White supremacists and neo-Nazi ideology and insignia. It was especially active in and around Mariupol in 2014 and 2015. CNN teams in the area at the time reported Azov’s embrace of neo-Nazi emblems and paraphernalia. (read more)

As long as the west supports the Nazis to advance their political interests, western media support Nazis.  As soon as the Ukraine conflict is settled, apparently it will be ok to go back to criticizing Nazis – or something.

In a discussion with Ivory Hecker, war correspondent Lara Logan notes the insufferable madness of the Ukraine propaganda that media will not stop pushing.  CNN sharing a sympathetic voice for the Ukraine army torturing prisoners of war, is just another typical example of the insanity.

Why Arab Mercenaries Fight for Russia


Armstrong Economics Blog/War Re-Posted Mar 31, 2022 by Martin Armstrong

Yemen is the largest humanitarian crisis that no one discusses. As I mentioned: “People are not driving around with “We Stand With Yemen” bumper stickers, and schools are not requiring children to make sense of this war. The public does not discuss or shed tears for the people of Yemen who live in unfathomable conditions because they are not a piece of the larger agenda and no one can profit off of their suffering at this time.”

It appears that Saudi Arabia and Qatar feel similar sentiments. “The humanitarian suffering that we have seen in Ukraine, and everyone is talking about it right now… has been the suffering of a lot of countries in this region for years and nothing happened,” Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani stated. “We have never seen a global response to address those sufferings.”

He went on to note the forgotten people suffering in Syria, Palestine, Afghanistan, and Libya. Countless people, in the hundreds of thousands, have been killed from these seemingly endless conflicts and millions have been displaced – forgotten and discarded by the West.

Ukraine’s Zelensky has criticized Russia for helping Syria’s President Bashar al-Assad to secure power in 2015. Russia did in fact help fight the Islamic State group and pushed them out of areas of Iraq and Syria. Putin has called on people from the Middle East to provide backup. “If you see that there are people who want of their own accord — not for money — to come to help … then we need to give them what they want and help them get to the conflict zone,” Putin told Defense Minister Sergey Shoigu at a security council meeting in Moscow.

Considering the dire economic situation for countless individuals across numerous Middle Eastern nations, the prospect of having a stable income is a deal many men cannot refuse. Yet, in addition to the money, the lack of Western support for these nations has caused a sense of resentment toward Ukraine and its Western allies. Putin postured himself as an ally many years ago.

World Government Summit Introduces the New Financial World Order – The Intent of the Digital ID That Follows the Vaccination Passport


Posted originally on the conservative tree house on March 31, 2022 

The World Government Summit 2022 took place on March 29 and 30 in Dubai, hosting more than 4,000 individuals from 190 countries including senior government officials, heads of international organizations, and global “experts.”   The invited participants presented ideas and worldviews from within their various fields of specialty.

One presentation that needs to be highlighted was from Dr. Pippa Malmgren, an American economist who served as special advisor on Economic Policy to President George W. Bush.

Her father, Harald Malmgren, served as a senior aide to US Presidents John F. Kennedy, Lyndon B. Johnson, Richard Nixon, and Gerald Ford.   In this segment, Mrs. Malmgren says the quiet part out loud.  Yes, they are no longer hiding the construct; indeed, as you will hear they are saying quite openly what the future will look like.  WATCH (2 minutes):

[Full Source – 6 hours (internal segment at 18:30)]

Transcript – Dr. Malmgren: “What underpins a world order is always the financial system. I was very privileged. My father was an adviser to Nixon when they came off the gold standard in 71. And so, I was brought up with a kind of inside view of how very important the financial structure is to absolutely everything else.

And what we’re seeing in the world today, I think, is we are on the brink of a dramatic change where we are about to, and I’ll say this boldly, we’re about to abandon the traditional system of money and accounting and introduce a new one. And the new one. The new accounting is what we call blockchain.

It means digital, it means having a almost perfect record of every single transaction that happens in the economy, which will give us far greater clarity over what’s going on. It also raises huge dangers in terms of the balance of power between states and citizens.

In my opinion, we’re going to need a digital constitution of human rights if we’re going to have digital money. But also this new money will be sovereign in nature. Most people think that digital money is crypto, and private. But what I see our superpowers introducing digital currency, the Chinese were the first the US is on the brink, I think of moving in the same direction the Europeans have committed to that as well.

And the question is, will that new system of digital money and digital accounting accommodate the competing needs of the citizens of all these locations, so that every human being has a chance to have a better life? Because that’s the only measure of whether a world order really serves!”

The entry into a digital currency, needs a digital identity.

The end goal of a digital currency is why western political leaders have not been worried about following the COVID-19 spending demands from the World Economic Forum. {Go Deep}

When the global trade currency does not need to be pegged to anything to determine value, it is completely fiat.  This is the current problem with global trade and transactions taking place in U.S. dollars, which arbitrarily lifts the standard of life for Americans while providing no similar benefit to other nations. That view became the underlying motive for Osama Bin Laden to target the World Trade Center, twin towers.  That view was/is also the perspective carried by Barack Obama, that lay behind his “fundamental change” statement.

A digital currency allows ultimate control on a global basis by a one world government, or western system of collective governments, that can assign value.  No other mechanism will have as much control over the life of a person than a digital currency that will create a system of transactional credits and debits, perhaps also influenced by your social credit score.

The digital currency requires a digital identity in order for apportionment based on your value to society.  This is essentially an extension of the Fabian mindset into the world of financial transactions and monetary evaluations.  Fabians believed that some form of socioeconomic tribunal would be needed in order for each citizen to be quantified according to their “worth” to society.  The Chinese social credit score is a variant of that same concept.

The phrase “you didn’t build that,” when espoused by former President Obama and current Senator Elizabeth Warren is also based on this collective worldview. Both believe that individuals do not succeed independently, but rather gain their ability to grow wealth by using the resources of the larger society, infrastructure, labor and education.  The phrase “it takes a village” to raise a child, as espoused by Hillary Clinton is another variant of the same collective advocacy.

A digital currency and digital identity is not a conspiracy theory, these “global leaders” are explaining it to us out loud.  However, I am concerned that most will not hear it, or understand it, until it is too late.

Remold it nearer to the hearts desire”

Or

Build Back Better

Same/Same

An Easier Solution for Rupee-Ruble Payments


Armstrong Economics Blog/World Trade Re-Posted Mar 30, 2022 by Martin Armstrong

India imported $3.3 billion in goods to Russia in 2021, and the finance ministry has no plans to slow that source of revenue. India has not placed sanctions on Russia. The Federation of Indian Export Organizations (FIEO) announced that India will now switch to a SWIFT alternative that permits rupee-ruble payments between the two nations. This renders removing Russia from the SWIFT system a moot point for India as exporters may continue business as usual with their Russian partners. Furthermore, this will permit India to continue purchasing Russian energy at a time when other countries are shunning the resources they need the most.

In fact, India is hoping to profit off of the West’s ban on Russian exports. “Export to Russia is not much, only in agriculture and pharmacy products. Now that the whole of the West is banning Russia, there will be a lot of opportunities for Indian firms to enter Russia,” a member of the FIEO stated. Indian Oil Corp has begun purchasing more oil from Russia and there are talks of purchasing highly sought-after fertilizer from both Russia and Belarus.

India, the largest oil importer in the world, was only purchasing around 2% to 5% of their crude from Russia in recent years, but with the prospect of seeing a heavy discount, they are likely to turn to Russia instead of the Middle East. “Countries with oil self-sufficiency or those importing themselves from Russia cannot credibly advocate restrictive trading,” an Indian government official cited weeks ago.

So if there is an easy solution for rupee-ruble payments, we should expect to see an easy solution for yuan-ruble payments. These nations are looking at finances rather than politics and will profit as a result.