I apologize, the proposal began in 1991 for Russia to join NATO. But the final agreement with respect to Ukraine’s nukes was not in Belgrade but in Budapest. History has been rewritten to support the war against Russia for climate change. I have never seen any account of history that reports NATO invited Russia to join in 1991. Some people are so pro-Ukrainian that it is insane. They are really cheering for World War III and no doubt believed in COVID, Weapons of Mass Destruction in Iraq, and Hillary’s RussiaGate. They refuse to open their eyes to see that they have been played for fools as always to justify war.
So cheer all you want. This war will NOT be confined to just Ukraine you can watch it on TV as if it is some video game. Ukraine was the 3rd largest nuclear power. That was a fact. The US paid them to surrender their nukes to Russia and they in turn provided nuclear power rods for electricity. James Baker warned about loose nukes and Ukraine was one of the three republics that ended up with nukes. The difference was, Ukraine wanted to use them on Moscow. All my sources back then were deeply concerned that Ukraine just could not ever be trusted. It was Ukraine that kept the cold war going. Zelensky has supported the Ukrainian Neo-Nazis who have even bragged that they feed the bones of Russian-speaking children to their pet wolves. I have fact-checked that and it is a true statement made to the press.
My dealing with Ukrainian governments has always been: Just show me the money. Ukraine is a corrupt black hole. History will show who is on the right and wrong side if any side survives.
Good luck with your hatred. Remember, there is a funny thing about what we call karma. What you wish on someone else may be what becomes your own undoing. So don’t worry. Your hatred of Russia will end that nation, but it will be a Phryic War and nobody will survive. So cheer the loss of your future. You will get what you deserve in spades.
The Polish Association of Memory of Victims of Crimes of Ukrainian Nationalists documented 135 methods of torture and murder practiced by Ukrainian Nazis. Poland officially called the Ukrainian actions genocide. The Ukrainians have been protected by the CIA for decades ONLY because they hated Russians. They continue to protect the Ukrainian Nazis only because they are waging war against Russia.
The Ukrainians were unprecedented in their war crimes during WWII and the sheer outright cruelty one would expect only exists in some B-Rated horror movies. This included:
Running children through with stakes
Cutting a person’s throat and pulling their tongue out through the hole
Sawing a person’s torso in half with a carpenter’s saw
Cutting open the belly of a woman in an advanced stage of pregnancy, removing the fetus, and replacing it with a live cat, before sewing up her abdomen.
Cutting open a pregnant women’s abdomen and pouring in broken glass
Nailing a small child to a door.
Ignore all the history you want to keep fanning the flames of war. When you lose everything, remember – you asked for this result.
Posted originally on the conservative tree house on November 3, 2022 | Sundance
In the prediction section of the recent Twitter discussion {Go Deep} CTH mentioned the reason and unspoken motive behind a prediction that multinational corporations would start to pull their advertising money from Elon Musk.
We are simply in an era where there is no distinction between the WEF guidance for multinational corporations and the instructions toward governments’ they support. Free speech and freedom of expression are against both their interests.
Multinational corporations are political entities. The former distinctions between the private and public sector have been purposefully erased. Evidence can be found in the vaccination mandate and within corporate responses to voter outcomes during elections. {Go Deep}
As predicted, it begins….
(Via Wall Street Journal) – Food company General Mills Inc., Oreo maker Mondelez International Inc., Pfizer Inc. and Volkswagen/Audi are among a growing list of brands that have temporarily paused their Twitter advertising in the wake of the takeover of the company by Elon Musk, according to people familiar with the matter.
Some advertisers are concerned that Mr. Musk could scale back content moderation, which they worry would lead to an increase in objectionable content on the platform. Others are temporarily halting their ads because of the uncertainty at the company as top executives exit and Mr. Musk considers a raft of changes, some of the people said.
Kelsey Roemhildt, a spokeswoman for General Mills, whose brands include Cheerios, Bisquick and Häagen-Dazs, confirmed the company has paused Twitter ads. “As always, we will continue to monitor this new direction and evaluate our marketing spend,” she said.
A Twitter representative didn’t immediately respond to a request for comment.
General Motors Co. paused its spending on the social-media platform last week.
Several ad buyers say they expect the number of brands pausing Twitter ads to rise. They say that the platform isn’t considered a must-buy for many advertisers, with far larger budgets going to tech giants such as Alphabet Inc.’s Google and Meta Platforms Inc., and that pausing makes sense during the bumpy transition under Mr. Musk.
Many executives on Madison Avenue are uneasy with the rash of sudden executive departures from Twitter’s advertising sales and marketing units. Among those who have exited are Chief Customer Officer Sarah Personette, Chief Marketing Officer Leslie Berland, and Jean-Philippe Maheu, Twitter’s vice president of global client solutions. Those executives helped reassure advertisers that their ad dollars were being spent wisely and appropriately on Twitter. (read more)
Fascism was traditionally defined as an authoritarian government working hand-in-glove with corporations to achieve objectives. A centralized autocratic government headed by a dictatorial leader, using severe economic and social regimentation, and forcible suppression of opposition.
That system of government didn’t work in the long-term, because the underlying principles of free people reject government authoritarianism. Fascist governments collapsed, and the corporate beneficiaries were nulled and scorned for participating. Then, along came a new approach to achieve the same objective.
The World Economic Forum (WEF) was created to use the same fundamental associations of government and corporations. Only this time, it was the multinational corporations who organized to tell the government(s) what to do.
The WEF was organized for multinational corporations to assemble and tell the various governments how to cooperate with them, in order to be rewarded by them. Corporatism was/is the outcome. The government is now doing what the multinationals tell them to do, and in return the multinationals install the compliant politicians.
Fascism, the cooperation between government and corporations, is still the underlying premise; the World Economic Forum simply flipped the internal dynamic putting the corporations in charge of handing out the instructions.
What results is a slightly modified definition of fascism:
…A massive multinational corporate conglomerate; telling a centralized autocratic government leader what to do; and using severe economic and social regimentation as a control mechanism; combined with forcible suppression of opposition by both the corporations and government.
Doesn’t that define our current reality, especially visible in the era of COVID?
The instructions from the multinational corporations to government would be called the “Great Reset“, or as commonly transposed by the government officials receiving the instructions, “Build Back Better”.
Posted originally on the conservative tree house on June 14, 2022 | Sundance
The “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 the May 2022 price data [Available Here] showing another 10.8% increase year-over-year in Final Demand products at the wholesale level.
The inflation within the total goods supply chain continues to accumulate at a more significant rate than the finished goods on the store shelves. This means replacement goods will continue arriving with higher prices than current. Final demand goods in May were 1.4% higher than April (16.8% annualized). And the May year-over-year prices show a 10.8% increase [See Table A]. However, there’s more trouble ahead:
More troubling than the final demand price increases (wholesale finished goods), are the price increases in the intermediate goods and unprocessed raw materials.
Intermediate processed goods increased 2.3% in May (27.6% annualized). The intermediate unprocessed goods, raw materials, jumped even higher in price at 6.3% for May (that’s a whopping 75.6% annualized increase). It would appear the raw materials coming into the goods sector are coming in with even higher built-in energy costs than most people anticipated.
Once those intermediate products reach the final demand stage (wholesale), the cumulative price increase will mean even higher consumer prices.
(VIA ABC) – WASHINGTON — U.S. producer prices surged 10.8% in May from a year earlier, underscoring the ongoing threat to the economy from inflation that shows no sign of slowing.
Tuesday’s report from the Labor Department showed that the producer price index — which measures inflation before it reaches consumers — rose at slightly slower pace last month than in April, when it jumped 10.9% from a year earlier, and is down from an 11.5% yearly gain in March.
On a monthly basis, producer prices climbed 0.8% in May from April, above the previous month, when they increased 0.4%.
Energy prices, led by gas, rose 5% just in May from April. Another big driver of the price gains last month was a sharp 2.9% increase in the cost of truck freight hauling, a sign that supply chain problems still aren’t fully resolved. Food costs were unchanged.
The figures indicate that rising prices will continue to erode Americans’ paychecks and wreak havoc on household budgets in the coming months. Inflation has created major political headaches for President Joe Biden and congressional Democrats and has forced the Federal Reserve into a series of rapid interest rate hikes intended to slow the economy and cool price increases. (read more)
I’ve said it before and will say it again – cryptocurrencies are not a safe investment. I know it is not a popular opinion; people have had success with trading. The problems with cryptocurrencies: (1) they depend entirely upon the government; with the stroke of a pen, they can all be seized; (2) they depend upon a power grid; (3) they also become dependent upon others accepting them.
A fourth all too common issue is that crypto trading platforms can prevent people from trading with little or no explanation. Binance recently announced that users are not permitted at this time “due to a stuck transaction causing a backlog.” CEO Changpeng Zhao stated on Twitter that the issue would be fixed in under 30 minutes. Later in the day, he said the issue would “take a bit longer to fix than my initial estimate,” but would only impact the Bitcoin network. Uncoincidentally, this sudden system glitch occurred after bitcoin fell by 10% beneath the $24,000 level.
This happens more than they would like people to believe. A few years back, a friend of mine was blocked out of their Bittrex account as soon as one of their cryptos began crashing. At one point, Bittrex suspended and eliminated numerous accounts in 2017, and it took them days to respond. They claimed the issue was a “compliance review,” as these platforms can seemingly make up any excuse they please. During that instance, they did not even inform users before they were locked out of their accounts. Unpopular opinion but the fact of the matter is that cryptos are seriously flawed.
The various handouts and moratoriums during the pandemic drove the personal savings rate down to World War II levels. Everything was closed – there weren’t many opportunities to spend. US consumers paid off a record $83 billion in credit card debt during the pandemic, but that has all come crashing down.
The Federal Reserve reported that revolving credit card debt in April reached $1.103 trillion, surpassing pre-pandemic levels and spiking 20% from the year prior. Credit card balances reached an alarming $841 billion in the first three months of this year alone, and the Fed expects that figure to continue rising due to the unsustainable price of living. In addition, household debt is now close to $16 trillion after consumer debt spiked 1.7% in Q1.
Unfortunately for those already behind, the rising interest rates will only cause them to carry a higher balance of debt. Once the prime rate rises, credit card companies will follow. The APR on credit cards is already 16.61%, nearing the high of 17.87%, on average, but is expected to rise. Debt can easily become a vicious cycle from which there is little escape for the average person. Those who budgeted in the belief that Biden would actually cancel their student debt were misled if not gullible. As housing, food, gas, and other necessities rise, those who are already void of liquid assets will find themselves in a dire situation.
QUESTION: Marty, Socrates is worth its weight in something far more valuable than gold. I want to congratulate you for you are the ONLY adviser who nailed not just the cryptocurrency bloodbath, but that the dollar would rise when everyone else kept predicting it would crumble to dust. Then you warned that emerging markets would move into crisis defaulting on their debt. You said even China was in the same crisis because many borrowed in dollars since the interest rates were cheaper.
Is the dollar behind the banking crisis in China and with all the AI systems claiming a new world order, why are they failing when Socrates succeeds?
ANSWER: I will answer the AI issue tomorrow. The dollar crisis is emerging because people do not understand capital flow analysis. They keep harping on the quantity theory of money. They assert that the more money the Fed creates, the more the dollar bust decline, and typically gold must rise. They do not understand that capital flows like water. It will always move to the lowest risk.
Milton Friedman came to listen to my lecture on foreign exchange in Chicago. We became friends and he explained to me that I was doing what he had only dreamed about. Yes, it was Milton who had advised Nixon on shutting down Bretton Woods and adopting a floating exchange rate system.
While many criticize Milton, they did not really understand what he saw. In 1953, he saw that a floating exchange rates system would provide a natural check and balance against the government policies. That is why he came to listen to me. I had developed capital flow analysis which was what he envisioned would happen under a floating exchange rates system. He theorized that in 1953.
I have been called in on so many FX crises it is amazing. They were selling Swiss loans to Australians in the 1980s to save on interest rates. They never considered what would happen if the exchange rate changed and the Swiss franc rose against the A$.
Just look at these two charts. The A$ was crashing and the Swiss franc rose. The default rate on mortgages exploded and small businesses who listen to bankers pitching Swiss loans to save money lost a fortune. The same crisis took place following the Swiss/Euro Peg when that broke.
Once again, the bankers were selling mortgages in the Swiss franc in Europe to lower interest rates. I cannot tell you how many times were have been called in on major financial crises around the world all for the very same reason. People make a loan in a foreign currency to save money on the interest rate. They have NO CONCEPT that the currency can swing even 40% in a short period of time.
The Chinese Central Bank warned its provinces and corporations NOT to borrow in dollars. They understood our model and understood what happens under such a currency crisis. Nevertheless, provinces and private corporations did not listen. They succumbed to the lure of the cheap interest rate.
I had even spoken with a major company and warned them the dollar would rise and there was a serious risk in emerging markets. They were new and as you say, they listened to the majority of opinions that took the opposite forecast. Now we see bank runs in China and serious problems in emerging markets.
Posted originally on the conservative tree house on June 13, 2022 | Sundance
The S&P 500 fell 151.23 points, or 3.9%, to 3749.63. The Dow Jones Industrial Average dropped 876.05 points, or 2.8%, to 30516.74. The tech-heavy Nasdaq Composite declined 530.80 points, or 4.7%, to 10809.23 (33% lower that the November record).
CNBC – […] U.S. stocks on Monday entered a bear market because the S&P 500 closed more than 21% below its all-time record close reached as recently as last January, S&P Global Dow Jones Indices senior index analyst Howard Silverblatt wrote.
Stocks had been flirting with a bear market for the past several weeks on an intraday basis, but had never actually closed below 3837, the level S&P Global needed to see in order to officially declare one.
S&P Global says a 20% decline in the S&P 500 on a closing basis from its previous peak is all it takes to define a bear market. Which means that this bear market is already more than five months old, since the S&P 500 all-time high came on January 3. (read more)
Governments are pulling off a major profound theft. They have been violating international law robbing individual Russians with no connection to Ukraine on the pretense that this will somehow put pressure on Putin to leave Ukraine. But the US has been funding the civil war against Russian-Ukrainians in the Donbas. Western Ukrainian simply hate Russians and this goes back to Bandera in World War II. The West was not upset when the Ukrainians were beating Russians on the street in Odessa, chased them into a building, and then burned them to death alive. That was perfectly fine because they were Russian
The real question here is have our politicians simply used Ukraine as the excuse to just confiscate money regardless of who owns it? There seems to be an apparent almost ownerless view of money emerging especially in Europe where governments are just grabbing money at will abandoning any rule of law. Like Trudeau in Canada confiscating people’s accounts because they supported the truckers. We seem to be entering a complete collapse in the very foundation of law upon which civilization has been sustained.
This confiscation of private Russian accounts and assets on the theory that their country is doing something that offends another is the complete collapse of civilization and it appears to be just getting started as we head into this ominous target of 2032. If we just look at Europe, savers and investors have been abused with negative interest rates since 2014, the assets have been devalued for years, and now with inflation of over 7% in Europe, there is complete drastic destruction of European capital.
The wise have been pouring money out into anything tangible. Everything from collectible cars to art, antiques, coins, and stamps have been rising. A gold Aureus of Brutus with a hole that had previously sold for under $100,000, was just sold for 2,200,000 CHF! A Mercedes Gullwing brought $1,3 million.
There are serious concerns that this is a prelude to the seizure of people’s savings on a wholesale basis for implementing You will Own Nothing & Be Happy. The Russian confiscation in total violation of international law appears to be just a test run for even more serious events in the future. In this wholesale confiscation of private assets, these politicians are using the excuse of Ukraine to implement a completely new normal procedure – the confiscation of billions without asking who the funds belong to and whether there is a connection to the Ukraine war. While some may look the other way because they are Russians and who cares if there is no connection to Ukraine or a rule of law. But turning a blind eye to what is going on is very dangerous for to accomplish this confiscation means they MUST abandon every foundation of the rule of law and without that there can be no civilization left standing.
Those who approve of such actions directed against Russia should be aware that what they can justify today with Russians can and will be done tomorrow with the savings of any citizen. They already confiscate private assets if you travel with more than $10,000 and they PRESUME it is illegal money. They do not even have to prove that there was a crime. They seize it and that is it.
Confiscating someone else’s money demonstrates how desperate politics has become. They MUST retain power and they will justify their actions just as Thraymacus argued in his debate with Socrates. Justice is always the same no matter what form of government because justice simply becomes the self-interest of those in power.
The past speaks to us if we dare to listen. History repeats because the passions of humanity never change throughout the centuries. For thousands of years, governments have been expropriating someone else’s property. No matter what century we look at, the same practice emerges when governments are financially stressed as they are today. It was Edward I who expelled the Jews from England, but the motive was not religion. He borrowed from the Jews to fund his war against France and when he could not pay, he suddenly discovered that his bankers were Jewish – OMG! How could that have been the case? So he expelled them from England but seized all their property denying them the right to flee with their property. It was Edward I who was the king in Brave Heart (being Scottish, it was the most influential film in my life).
Governments are UNWILLING to find solutions to pressing economic problems because they may result in their loss of power and our freedom. Even the plundering of private assets with the help of the low-interest rate policy has deprived people of their rightful income after telling people to save for their retirement and you will be able to live off the interest. Those promises have been destroyed.
Against the background, politicians are incapable of properly managing the state budgets entrusted to them. They no longer know even how to run for office without promising free gifts and taking money from one class to hand to another. Central banks, especially the ECB, have kept interest rates low to provide the over-indebted countries with cheap money, causing savers and investors to sacrifice their future with no end in sight.
Politicians have exploited Russia and begged them to invade Ukraine, refusing to enforce either the Belgrad Agreement or the Minsk Agreement which was to allow the people of the Donbas to vote on their own future while pretending this is a war for democracy v autocracy. They need the Ukrainian war as a diversion as a shell game to distract the people from the economic crisis hiding in the wings.
They have deliberately pushed Russia to suspend servicing their debts to Western lenders, in preparation for their own excuse to suspend their own servicing of debts. As usual with sanctions, not only the person against whom the sanctions are directed in this case Russia is harmed but also this has undermined the entire world economy ensuring its collapse in the years ahead. In this context, it cannot be stressed enough that sanctions historically have never worked and they know that they are generally pointless. They began imposing sanctions against Russia back in 2014 and more sanctions for the Ukrainian false flag of shooting down the Malaysia passenger jet trying to get the West to come in and defend Ukraine.
Even now blaming Putin for blockading Ukrainian ships carrying grain, they omit the fact that the Ukrainians have mined the harbors and are deliberately trying to create starvation to once again compel the West to enter this vindictive war against Russia. The Neocons, John McCain, and Lindsey Graham have been promoting civil war in Ukraine to create a Proxy War they are willing to fight until the last Ukrainian is dead. But nobody will dare look at the fact that this Ukrainian War has been provoked.
The day before Russia invaded, Zelensky announced he would rearm Ukraine with nuclear weapons. We invaded Iraq on the pretense he had such weapons which were never true. Here you have Zelensky standing up publicly announcing he is breaking the Belgrade Agreement and refusing to allow Donbas to hold elections as per the Minsk AGreement, but Putin is the evil person here?
Then we have Zelensky promoting World War III claiming has already begun yet all these world leaders visiting him in Ukraine including Biden’s wife while pretending Kyiv is a war zone. This is all a joke. It is such theatre for the world needs a war to hide the economic collapse they know is coming. I have warned that Zelensky will be the man that brings World War III. That is his mission in this play.
PREPARING TO CONFISCATE PRIVATE ASSETS:
There was a practice run that people have forgotten. Remember the first confiscation of Russian assets when they robbed Russians by confiscating their deposits over Cyprus. Do you recall that back in 2013, the IMF head Christine Lagarde at the time advocated a wholesale seizure of 10% of all accounts throughout the Eurozone because there may be riots and discord if there are bail-ins on a case-by-case basis. This was laid out in the IMF report. The idea is that a wholesale seizure will prevent a bank run for if bail-ins take place on a case-by-case basis then this might start a contagion. Consequently, the latest reports from the IMF discuss this super-seizure of 10% on all savings in the Eurozone they are calling a tax. This is argued to be necessary to solve the debt problem in most sovereign countries. It would be an alternative to higher taxes or spending cuts. The economists who actually wrote the paper claim it appears to be an efficient solution for the debt problem yet it lacks long-term analysis.
Today, the director of the International Monetary Fund (IMF), Kristalina Georgiva, who is also on the Board of Directors of the World Economic Forum and got the job thanks to Schwab, made a very naive statement claiming that the Russian sanctions are not all that bad. Russia accounts for only 0.4% of the world financial market. She admitted in her 60-minute interview that imposing sanctions on China for helping Russia will lead to more supply chain disruptions which will further inflation. So she justifies illegally confiscating private assets using her bogus statistics yet energy prices are soaring and the EU says the entire food crisis is caused by “Russian alone!” The disinformation is not coming from Putin, but right before our eyes here with Western pretend leaders.
This is all the surface banter that avoids the entire point of our real pending economic crisis – authoritarianism in the West. What has emerged is the justification for grabbing money that belongs to others. Even if we turn the clock back to the 2010 Greek Financial Crisis when politicians suddenly declared bonds worth millions worthless. Private investors in Greek government bonds wanted to claim 12 million euros in damages from the ECB after the debt restructuring. The European Court of Justice ruled against the plaintiffs. Th claim that the expropriation of private assets would facilitate the rehabilitation of the country. That restructuring completely failed. Governments act ONLY in their own self-interest, never in the interest of the nation or the people.
Because we are pushing this end-game of governments being able to keep funding going under this system of perpetual borrowing year after year, adding the fact that the central banks cannot keep buying the debt creating money indefinitely while being blamed for not stopping inflation, the only remaining solution open to the government is to seize the assets of citizens and businesses. This is what Schwab is selling with you will own nothing and be happy. From now on, you can only withdraw small amounts of cash that are absolutely necessary to cover immediate needs. This is always the scheme that repeats in all historical financial crises.
Just Look at Russia
There was absolutely no valid legal basis for seizing the private assets of Russian citizens. It is purely arbitrary but violates every principle of international law. There is also no DUE PROCESS OF LAW afforded any Russian individual. In principle, such a policy against Russian state funds would be legal, but only if the USA and the EU were at war with Russia. There must be a declaration of war to justify even that action. A direct military confrontation is scrupulously avoided because only the US Congress can issue a declaration of war. Therefore, as long as the Biden Administration does NOT send troops to Ukraine, then he does not need Congress’ approval for this Proxy War which has the same intentions of destroying Russia. As far as the confiscation of corporate and private assets is concerned, there is no precedent in history to justify these sanctions. This means they have TOTALLY abandoned all rule of law whatsoever.
Consequently, after already abandoning the rule of law, the intensification of this behavior will only continue when it becomes evident that the political system is collapsing. This is point 8 in Schwabs Great Reset. They know that they are pushing the envelope here and as inflation rises, so will civil unrest. They will then turn on the people just as Venezuela has done which is also why they desperately need to eliminate gun ownership. That is essential to disarm the people who the complete implementation of this Great Reset.
We have embarked upon a new Wild West Economic Policy of just confiscating assets. Blocking funds that could be used to settle claims against Russian debtors is part of this strategy that they KNOW will have zero impact upon forcing Russia to withdraw from Ukraine. They have deliberately put Russia in a position where they know it cannot back down. The real question is do they really think overthrowing Putin will lead to Russia falling to its knees begging for forgiveness?
The sanctions against Russia are presented by the US and the EU as legitimate measures necessary to bring warring Russia and its President Putin to surrender. But they know that will not happen. Clearly, the sanctions do not have the desired effect under any scenario are all they have done is shake the very foundation of the world economy revealing that it is arbitrary and untrustworthy. SWIFT had committed suicide and China’s alternative is pushing the world into a Great Reset, but not the decided objective of a one-world government headed by the United Nations. Africa also just refused to sign the WHO’s dictatorship over world heath.
What is clearly in play is their idea of confiscating private assets. What started the hyperinflation of Germany was NOT the printing of money – that was the result, not the cause. In December 1922, the government did a forced loan. They too confiscated 10% of everyone’s accounts and issued a bond, We are returning to such measures. The US and the EU along with Japan and Switzerland have thrown out all rules of law. We should expect nothing less in this final stage into 2032 where it will become a war between the government against we the people – the great unwashed.
Mohamed El-Erian is generally more correct than most, but the insufferable coded language he is required to use makes it difficult for the ordinary person to see exactly what he is saying. For this CBS segment, we will apply the decipher. [Transcript Here]
Notice this key phrase in the beginning of his discussion of inflation. “Of course, we know about the Ukraine war, we know about the energy transition, also the Federal Reserve mischaracterize inflation and fell behind.” No, Mohamed, most Americans do not know about the forced energy transition and how that has created this unavoidable inflation spiral. How about dropping the code and saying it directly? Joe Biden initiating the Green New Deal means much higher prices are permanent.
El-Erian speaks about supply side inflation, but doesn’t want to talk about the next phase, demand and service side inflation. The three month inflation data is higher than the year-over-year inflation data. That means inflation is growing. There is no way for inflation to drop when the most recent price increases are significantly higher than the previous price increases. Inflation is now detached from any intervention. WATCH:
Consumer demand for non critical goods are contracting at the same time prices continue rising (that’s stagflation). Demand side contraction, what El Erian calls “demand destruction,” means lost jobs (that’s recession). Food, fuel and energy prices all continue rising. The field costs are higher than current fork costs, and that (30%+) wave of inflation coming in from over the horizon is going to blow the doors off any economic growth. The process is unavoidable now.
The credit markets will feel the impact before the end of the year as consumers will no longer be able to make payments for loans, and still eat. Mortgage defaults will increase, vehicle repossessions will increase, credit card debt and bankruptcies will increase. The credit markets will get drowned in a tsunami of default. That’s the direct language El Erian will not use, but it is present inside the coded-language he does use.
If you did not purchase a house this year, you are ahead financially. Equity and values are plummeting.
The European Central Bank (ECB) has a major crisis beginning. The free markets always win, and the spreads on the interest rates among the member of the EU are widening for Greece and Italy. Fools are telling Lagarde to use stronger language to signal that divergences among the member states will not be allowed to take place. The borrowing costs of more vulnerable countries such as Italy and Spain cannot be contained.
When they were creating the euro, the Commission attended our 1998 London Conference — the same one when I warned that Russia was about to collapse. It was then when I had a discussion with them, warning that a single currency WOULD NOT produce the same interest rate for all.
All the talk was that a single currency would set a single interest rate. I tried in vain to explain that would never happen. They were comparing it to the US federal government and I made it clear that they were not consolidating all the national debts and this meant that there could be no single interest rate and the difference in the currency would be transferred to the bonds instead. They simply refused to listen because that was one of the selling points to get the euro going.
It did not matter, they just wanted the euro at all costs. Now we see the widening of the spread and one central bank cannot impose a single interest rate any more than the Federal Reserve can control the interest rates all 50 states must pay to borrow money. In the United States, Massachusetts has the highest debt per capita in the country at about $11,130 with a AA rating while Tennesse has the lowest at about $875 and has a AAA rating.
The ECB knows it is facing a nightmare. The ONLY possible solution is to consolidate all the national debts of the member states and that would then become federal. Only then could it possibly be on the same footing with the dollar. Back then, the Bundesbank was against the euro. They were feeding us all the notes of the meetings because they really could not come out and speak. The Bundesbank understood the potential long-term crisis, and they opposed the merger of national debts.
So here we go again. COVID set off the fuse; Ukraine is the time bomb about to explode. As the soothsayer warned: Caesar beware!
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
Centinel2012 