Armstrong Economics Blog/War Re-Posted Sep 29, 2022 by Martin Armstrong
I rarely believe in coincidences. Everyone is perplexed as to why there are sudden leaks in the Nord Stream pipelines in the Baltic Sea connecting Russia to Germany. The first explosion was recorded on Monday near the Danish island of Bornholm. The second blast happened later that evening and was so powerful that scientists equate it to a 2.3 magnitude earthquake.
Numerous people are claiming that Russia sabotaged the pipeline, but numerous clues indicate someone else was at play. Radek Sikorski, Poland’s former minister of national defense and EU Parliament member, posted an image of the leak with the caption, “Thank you, USA.”
The USA is certainly no stranger to targeting Russian pipelines. In January 1982, Ronald Regan and the CIA planned to destroy the Soviet Union’s economy by using the technology available at the time to create a massive explosion. The US wanted to block Europe from importing Soviet Western gas amid the Cold War and was willing to take extreme measures. Thomas C. Reed, a former Air Force secretary who served in the National Security Council, wrote a book entitled “At the Abysss: An Insider’s History of the Cold War.”
“In order to disrupt the Soviet gas supply, its hard currency earnings from the West, and the internal Russian economy, the pipeline software that was to run the pumps, turbines, and valves was programmed to go haywire, after a decent interval, to reset pump speeds and valve settings to produce pressures far beyond those acceptable to pipeline joints and welds,” Reed writes. According to the Washington Post, Reed later commented that it was the “most monumental non-nuclear explosion and fire ever seen from space.”
What about other nations in Europe? No one is claiming responsibility, but they are stating that it was a deliberate act of terrorism. “It is the authorities’ clear assessment that these are deliberate actions -– not accidents,” Danish Prime Minister Mette Frederiksen said Tuesday. Sweden’s Prime Minister Magdalena Andersson said, “it is probably a case of sabotage,” and they are not ruling out any scenarios. Polish Prime Minister Mateusz Morawiecki also called it “an act of sabotage.” “The era of Russian domination in the gas sphere is coming to an end,” Morawiecki declared. “An era that was marked by blackmail, threats and extortion.”
The United States is also claiming to be perplexed by the issue. White House Press Secretary Karine Jean-Pierre said she would not “speculate on the cause.” US President Joe Biden hinted at the cause in February 2022. In the video above, Biden tells reporters that if Russia invades, “then there will be no longer a Nord Stream 2. We will bring an end to it.” When a reporter asked just how the US would complete the task, Biden ominously said. “Trust me, we will do it.”
This was clearly an act of sabotage, but who was the culprit? The West is pointing to Russia, while Russia is pointing to the West. Something does not add up.
Armstrong Economics Blog/International News Re-Posted Sep 28, 2022 by Martin Armstrong
The world is entering a crisis in confidence. First we had the COVID manufactured crisis, that spawned the Energy Crisis, and now we are entering the Currency Crisis phase. As I have said, we have the worst possible of incompetent world leaders I have ever witnesses in my life. With all the talking heads on TV, we must understand that the best risk management is still based upon personal views and expectations. That is highly dangerous for the period into 2032, nobody is qualified to forecast the future from a personal perspective. You can only forecast what you even think is possible.
The UK Gilts have collapsed by 1% sparking the BOE to intervene. The fools on the hill may cheer, but they have never looked behind that curtain even once. Those in the central banks are trapped with old theories spouted out by the goldbugs to no avail – debt rising, printing of money = buy gold. People like Larry Summers wants higher taxes, higher interest rates, and less government spending and all those things that he and others point to as the problem in the UK that would lead to the further destruction of the world economy. Everything is says about the UK is applicable just about everywhere else. Why is the dollar rising with the same conditions? What is the difference? Could it just be the fact that they are all pushing hatred at Russians in general and itching for war using the Ukrainian people for political purposes? That equals strong dollar, capital flight to America, and the end of Europe.
The operator of NordStream 2 reported a sudden drop in pressure on Monday suggesting a possible leak reporting a drop in pressure for Nordstream 1 a few hours later. Danish armed forced reported bubbles creating a disturbance roughly 1 km in diameter in the Baltic Sea. While everyone acknowledges the probability of sabotage and many are pointing the finger at Russia promising to respond, following Swedish seismic monitoring suggests they there were explosions implying an intentional attack. The risk of climate zealots behind this event cannot be ruled out. Nobody in the mainstream press will even dare to question the validity of climate change claims so there is no hope of even causing anyone in government to rethink this scenario.
Nordstream 2 certification was canceled by Germany on February 22, 2022 to the cheers of the climate zealots and subsequently filed for bankruptcy whereas Nordstream 1 has been out of commission since the end of August due to oil leaks of the gas compression unit in Russia found during routine maintenance whose repair has been complicated by the economic sanctions. Moscow is demanding documentation to confirm the turbine is not subject to Western sanctions whereas Siemen’s CEO suggests the company is ready to return the turbine to Russia.
Cheer up – We have entered the era of Volatility. That is the byproduct of a collapse in confidence.
Armstrong Economics Blog/Real Estate Re-Posted Sep 28, 2022 by Martin Armstrong
Shelter costs have continued to rise in the US. Recent data provided by Redfin shows that the national average increased by 11% YoY this August. Costs are expected to decline as people simply cannot afford to pay more. Additionally, the supply is expected to increase as there are around a million rental units under construction. Yet, construction has been slow due to supply chain shortages mixed and inflation.
Some areas experienced a larger increase in rental costs. Cincinnati, Ohio, saw prices rise by 26%; Pittsburgh, Pennsylvania, rose 22%; Indianapolis, Indiana, rose 21%; Nashville, Tennessee, rose 20%. Rental pricing in areas of New York and New Jersey saw 18% increases.
Not all finger-pointing can go to the landlords as they are struggling to survive this inflation too. Maintenance and utilities have gone up in price. Property taxes continue to increase, as does insurance. The increased value of properties has become a double-edged sword for many landlords. Landlords lost money during the rent and eviction moratoriums and are making up for it now. So many tenants fled and never paid back rent. The government created this problem.
Countless landlords are turning to Air B&B and other short-term ventures. Landlords are forced to raise prices to make a profit, but at any moment, the government can put another moratorium in place and leave landlords high and dry. The government must address outrageous property taxes and encourage, if not incentivize, builders. If costs continue to rise, then we will see a rise in homelessness across the nation as the average person can no longer afford shelter.
Tulsi Gabbard Published originally on Rumble on September 27, 2022
Biden/Harris admin paint a rosy picture of a rebounding economy, secure borders, and freedom. But Americans live in the real world: struggling with inflation and basic needs. Soldiers going on food stamps. Historic illegal immigration. People unsafe in their own community. This is the real America those in power created.
Armstrong Economics Blog/Politics Re-Posted Sep 27, 2022 by Martin Armstrong
The left is so afraid of a red wave this November that they will do anything to allow illegals to vote. California’s Gavin Newsom, who admitted his party is “getting crushed,” signed into law an act that will permit illegal immigrants to obtain an official government-issued ID. “We’re a state of refuge – a majority-minority state, where 27 percent of us are immigrants,” Newsom said after signing the legislation. “That’s why I’m proud to announce the signing of today’s bills to further support our immigrant community, which makes our state stronger every single day.”
“I mean, if we are going to be realistic, they pay you to be homeless here.”
In addition to providing illegals with government IDs, Newsom is campaigning for votes in other states. His campaign has placed billboards in seven states, urging women to move to California where abortion is legal (a bit odd since women do not exist in woke America). Newsom placed billboard and newspaper ads across Texas to criticize the state’s gun laws, claiming California is so much safer. He has even run commercials in Florida to beg people to move to California.
Newsflash: people live in other states because they do not want government tyranny and sky-high taxes. Democrats love saying that “Democracy is under attack” while threatening to remove our freedoms. The exodus from California continues as civilians and businesses can no longer handle living under Newsom.
Posted originally on the conservative tree house on September 26, 2022 | sundance
Tucker Carlson used his opening monologue tonight to discuss the era of The Great Pretending, the disconnect between the ideology driven goals of the politicians and the people they are supposed to represent.
Using Giorgia Meloni as an example of a person who refused to play the pretending game, Carlson notes how Meloni won an easy victory by speaking plain truth to the Italian electorate. WATCH:
The Charlie Kirk Show Published originally on Rumble on September 25, 2022
Liz Cheney is really losing it, she is making herself look like an vindictive idiot!
Armstrong Economics Blog/Politics Re-Posted Sep 26, 2022 by Martin Armstrong
Crime has been rampant across America over the last two years. The economic downturn hurt low-income communities the most, and some are turning to crime for quick money. The borders are open, and anyone can enter America from the south. Laws have been repealed to permit an assortment of crimes, sweetheart deals for violent offenders are common, and nearly every city has reported a sharp uptick in crime under the Biden Administration.
The Trafalgar Group conducted a study to ask Americans if they feel safe in the land of the free. An alarming 67.9% reported that they no longer feel safe in America compared to two years ago under the Trump Administration. Even 44.9% of Democrats admitted that they no longer feel safe, while 86.8% of Republicans cited fears.
Murders increased by 6% in 2021 across the nation but spiked 30% from 2019 to 2020. New Orleans, Louisiana, surpassed St. Louis as the murder capital of America with 52 homicides per 100,000 residents. Overall crime in New York City rose 37% this year alone – grand larceny is up 49%, auto theft rose 46.2%, robberies are up 39.2%, and assaults increased 18.6%. Crime in Chicago makes NYC look like Disneyland. Murders in Chicago are 5X higher than NYC and 2.5X higher than LA. Crime in Lightfoot’s Chicago rose 37% from 2021, and the police cannot do anything to help due to the law. Carjackings occur every five hours in that city. Homicides in Philadelphia reached a record high of 562 in 2021 and are on track to surpass that level in 2022. The full data for 2022 is not available, but crime is up everywhere you look.
Our Supreme Court cannot define “women,” but violence against the XX community is atrocious. One in five American women has been the victim of a rape or attempted rape. Around 43.6% of American women will experience sexual violence, and these figures are notoriously underreported.
I hope the 67.9% of Americans who no longer feel safe remember that when voting this November. The Democrats want to focus on guns, mainly taking them away from law-abiding citizens afraid of the rise in crime. There is no plan under the Biden Administration to curtail your chances of becoming a crime victim.
Armstrong Economics Blog/Real Estate Re-Posted Sep 26, 2022 by Martin Armstrong
Fed Chair Jerome Powell stated that the US housing market would “probably” go through a “correction” period. It is of no surprise as home prices were steadily rising from 2020 until recently after mortgage rates rose and many were simply priced out of the market. The supply chain shortages continue to present a problem for builders. Investors with cash were able to outbid other buyers, and houses lasted less than a week on the market before being sold for above asking. Clearly, this is unsustainable in the long term.
The great American dream of owning a home with a white picket fence sharply rose during World War II thanks to suburbs expanding and the GI bill that assisted service members in purchasing real estate. Homeownership during this time jumped to 65% from the Great Depression period. Surprisingly, home ownership actually increased during the Great Depression as well by 3.7% to 4%. Mind you, cultural dynamics were different back then. Women could not even open their own bank accounts. Living at home was common until marriage for both men and women, multi-family homes were more common, and people simply lived with less. The playing field is completely different today.
In 2021, the real estate industry accounted for 17% of GDP in the US. Investors, landlords, and house flippers did well during this housing boom, naturally. The average American suffered as rental prices are in line with monthly mortgage payments, but obtaining a house remains difficult for the middle class. Those with fixed low rates are not likely to sell. Shelter composes the majority of our household expenses, and countless people who did purchase at the height feel house rich but cash poor. The Fed is focusing on the demand side since it cannot control supply.