Italy Joins France in COVID Vaccination Requirement to Engage in Social Life, Restaurants, Theaters, Stadiums, Gyms, Shopping


Posted originally on the conservative tree house on July 23, 2021 | Sundance | 76 Comments

Last week the French government announced they would require a “sanitation passport” for any French citizen who wanted to engage in almost all forms of social life like shopping, eating at restaurants, movie theaters, or events where crowds were present.  There has been some backlash and protest, but not nearly enough to stop other EU nations from following the French process.

Today, the Italian government announced similar measures with their “green pass” to force vaccinations upon the Italian people if they wish to participate in social functions that interact with other people.

Without a green pass, Italian citizens and visitors will not be allowed to eat at restaurants, attend theaters, or events where any size crowd might be assembled.

(France24) […] The so-called Green Pass is a digital or paper certificate that shows if someone has received at least one jab, has tested negative or has recently recovered from COVID-19.

As of Aug. 6, the pass will be required to go to gyms, swimming pools, sports stadiums, museums, spas, casinos and cinemas. Eating in indoor restaurants also requires a pass.  Some 48.2% of Italians are fully inoculated and 14.1% are awaiting a second jab, according to latest data. (read more)

Italian Prime Minister Mario Draghi said, “Calls for people not to get vaccinated is a call for people to die. If you don’t vaccinate, you get sick, you die or you let other people die”, in his effort to use political and social peer pressure to gain vaccination compliance.

Stay tuned, this forced vaccination protocol is very near to happening here in the USA.  The mid-term COVID variant, also known as the Delta Variant,  is being used in order to establish the groundwork for the 2022 election cycle.

The scale of U.S. governmental push and pressure on private companies to comply is unlike anything I can remember in my lifetime.   The effort is very creepy now…. and we can anticipate that free and independent states who are not forcing a mandated vaccine will likely come under even more extreme federal pressure.

One Father’s Fight Against Critical Race Theory


Posted originally on the conservative tree house on July 17, 2021 | Sundance | 77 Comments

Meet Kory Yeshua, father of three, and vocal opponent of Critical Race Theory. From young hip-hop and rap artist to fervent servant of God, Kory is a passionate patriot and a believer in the America dream. In this profile report, you’ll learn about his journey and what happened when his first grade daughter came home from school one day and asked, “Daddy, why weren’t the black kids allowed to play with the white kids.””

Support for John:  www.letsrollamerica.us
GoFundMe Link: https://www.gofundme.com/f/let039s-roll-america
GiveSendGo Link: https://givesendgo.com/LetsRollAmerica

World in Chaos


Armstrong Economics Blog/Opinion Re-Posted Jul 17, 2021 by Martin Armstrong

In South Africa, the currency has fallen hard as riots have devasted the country. They looted the mall, except for the bookstore. The former South African President Jacob Zuma turned himself in to begin a 15-month sentence for contempt of court. This has sent the country into a tailspin. Contempt of court is an abuse of judicial power, for they claim they can lock anyone up for any reason whatsoever.

In Greece, there are thousands of people protesting against the discrimination of people who have not been vaccinated and the mandatory vaccinations and other measures imposed by the Greek government to tackle the pandemic in Athens. There are far worse viruses that have taken place, yet governments have not destroyed the economies and taken such totalitarian measures. This in itself has raised skepticism as to what is really going on when the death rate is minimal.

In Britain, 47% of those with COVID have been vaccinated. In Australia, the mob stormed the government as in ancient Roman times resulting in chaos on the streets of Melbourne just hours before the city entered its fifth lockdown. The protesters have marched through the CBD, saying if they do not act, he will get away with it again. What I am hearing is that many are starting to say they would rather die in freedom than live in prison indefinitely. This is our problem. Governments will NEVER admit a mistake, and the fact that they are so involved with the vaccines, we have nobody to offer independent verification of anything.

Meanwhile, the Biden Administration wants to shut down all dissent and has been putting pressure on Big Tech to shut down people who disagree with the administration.

The greatest problem here is that Biden has stated UNDER NO CIRCUMSTANCE will he ever fire Fauci. That implicitly means he refuses to investigate anything about his research or the connection with Wuhan. That means the Biden Administration will NEVER provide the truth about COVID or anything else. The US will not admit that the origin of COVID might be linked to Fauci — he is above any investigation.

JoeBamanomics – Federal BLS Report Shows Declining US Wages 1.2 Percent Lower Than Last Year, Biden Administration Leading Economic War on Women


Posted originally on the conservative tree house on July 16, 2021 | Sundance | 64 Comments

Well, well, well…. though financial media will say this is remarkably unexpected, it is something CTH specifically predicted we would see – and it is happening exactly on the timeline CTH anticipated.

The Bureau of Labor Statistics releases the second quarter national wage rate data today {BLS DATA HERE}.  U.S. wages DECLINED 1.2% in the second quarter of 2021 compared to last year.  When reviewing the data [Table 2], look at the negative impact to women, specifically Black and Asian women:

TOP LINE – Combine a 1.2% decline in earned wages with a 5.4% overall inflation rate recently reported {Go Deep},  and what you get is a 6.6% drop in real income amid the working class.  That, my friends, is exactly what we said should be expected.  That is also why the JoeBama administration needs to pump more money into the system (human infrastructure spending) in order to stop people from realizing just how bad it is.

You cannot have declining wages and massive inflation and expect the middle-class to survive.  Additionally, when I said six weeks ago that we had just passed peak home value, this is another data point to bolster that prediction.  We are in a plateau period on macro-level real home values, from this point they start dropping.  You cannot have near double digit drops in real income and simultaneously expect people to afford high mortgages.  It just doesn’t happen.

The declining wage rates, and the more substantive drop in real wage rates due to massive inflation, are specifically hitting the lower tier of the working class harder.  Yet despite this,  Biden is intent on importing even more economic migrants to put even more downward pressure on wages for the working class.

These are very real outcomes of policy.  Working class Blacks and Latinos will feel this even more, yet this is the special interest group that Democrats claim to support.  The reality is exactly opposite from the narrative sold by the Biden administration.

The Democrats know this. These outcomes are not accidental; they are a feature not a flaw in their policy.  This is why they need to keep spending to retain the ruse.

There’s no way around this.  Despite the pundit and financial class selling a counter-narrative, home prices will crash and unemployment will go up.  I know this is directly against the current talking points, but the statistical reality is clear.  CTH was the first place who said two months ago that home sales will plummet, that is starting to happen right now.  There’s no way for it not to happen, the big picture tells us why.

♦ Inflation Data Link

♦ Prior Prediction Link

May 2021 – “It will be very interesting to watch how the housing market responds over the next few months. If the trendline continues we should see a considerable softening in home sales, again depending on region, as the inflation hits the working class.”  Imagine what happens when they stop pumping money into the economy.

150 Multinational Corporations, The Wall Street Crowd, Urge Congress to Take Over U.S. Elections


Posted originally on the conservative tree house on July 14, 2021 | sundance | 251 Comments

There Are Trillions At Stake…

Here we go again, 150 multinational Wall Street corporations write a collective letter urging congress to pass the stalled legislation that would trigger a federal takeover of U.S. elections.  [Reuters Article Link] I’m not going to post the article directly, because it is the same group of characters, the same motives and intentions that we previously wrote about [HERE].

[Please note: all leftist media call them “corporations” when the narrative is purposed to attack capitalism (ie. ‘Occupy’), and then the media switch to the term “companies” when the narrative engineering needs to support the same corporations they previously attacked.  The Alinsky wordplay is part of the design.  Democrats say “corporations bad” to their woke sheep, so when they need to hide their alignment with the same businesses, the media switch words to call them “companies.”  I point this out because it is actually a useful tool to help people wake up and spot the manipulative and purposeful hypocrisy of the leftist ideology.]

At the heart of the issue, we are yet again back to the familiar battle, Wall Street -vs- Main Street.

Remember in April when 100 multinational corporations held a conference call to organize messaging on state election laws?  Well, this is the same crew only now with targeted messaging toward congress.

Additionally, I guarantee you the G-20 discussions about a “global minimum corporate tax” are being leveraged by the White House against these U.S. Multinationals in order to get them in line supporting the federal election takeover.  I guarantee you backroom deals and carve-outs, collusion between government and corporations, are being made.

Their commonality of purpose.  The multinationals need the federal takeover of elections because Wall Street needs globalism in order to continue advancing their financial objectives.  Main Street nationalism, or economic patriotism, is antithetical to their income statements.  The current White House and the Multinational Corporations have a common enemy, Main Street.

The current alignment between government and corporate industry is also why the mega-corporations were enhanced during COVID rules/regulations and shutdown dictates, while small businesses on Main Street were crushed.

The multinationals need the U.S. to be a service driven economy, and simultaneously, the corporations need the security of never seeing President Trump’s “America-First” policies restarted.  That’s why the multinational-corps support the Democrats goal to take over elections; economic nationalism must be stopped.  There are trillions at stake.

There is a difference between an ordinary corporation and a multinational corporation.  Multinationals hate capitalism. However, when I say most multinational corporations hate capitalism many people look confused, so let’s remind ourselves via a short video that explains why:

The first myth busted in that video explains why corporations do not like capitalism. That’s also why Big Tech is also against capitalism.

Multinationals want control; some call that corporatism…. but the names are moot. Multinationals want control, and capitalism does not allow them control; that is why multinationals do not want capitalism. Multinationals use lobbyists to generate regulations that stall competition.

Multinationals do not want competition; they are, by nature of their interest, anti-capitalists.

This misunderstanding is everywhere.

Consider if you will, the backdrop of current U.S. politics; the influence of Wall Street and the multinationals who align with globalism; the reality of K-Street lobbyists writing the physical legislation that politicians sell to Americans; and then overlay what you are witnessing as those same multinationals now attack the foundation of our constitutional republic.  All of this is CORPORATISM, a continuum that people were ignoring for decades.

To think that President Trump alone could carry the burden of correcting four decades of severe corruption of all things political, without simultaneously considering the scale of the financial opposition, is naive in the extreme.

♦ POTUS Trump was disrupting the global order of things in order to protect and preserve the shrinking interests of the U.S. He was fighting, almost single-handed, at the threshold of the abyss. Our American interests, our MAGAnomic position, was/is essentially zero-sum. His DC and Wall-Street aligned opposition (writ large) needed to repel and retain the status-quo. They desperately wanted him removed so they could return to full economic control over the U.S, because it is the foundation of their power.

You want to criticize him for fighting harder against those interests than any single man has ever done before him? If so, do it without me.

I am thankful for the awakening Donald J Trump has provided.

I am thankful now for the opportunity to fight with people who finally understand the scale of our opposition.

Without Donald J Trump, these entities would still be operating in the shadows. With Donald J Trump, we can clearly see who the real enemy is.

In these economic endeavors President Trump was disrupting decades of financial schemes established to use the U.S. as a host for their endeavors. President Trump was confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of the host (USA) ie YOU. There are trillions at stake; it is all about the economics; everything else is chaff and countermeasures.

The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle-class to thrive.

Elite financial interests, including those within Washington DC, gain wealth and power, the U.S. workforce is reduced to servitude, “service”, of their affluent needs.

The destruction of the U.S. industrial and manufacturing base is EXACTLY WHY the middle class has struggled, and exactly why the wealth gap exploded in the past 30 years.

Behind this dynamic, we find the international corporate and financial interests who are inherently at risk from President Trump’s “America-First” economic and trade platform. Believe it or not, President Trump is up against an entire world economic establishment.

When we understand how trade works in the modern era, we understand why the agents within the system are so adamantly opposed to U.S. President Trump.

♦The biggest lie in modern economics, willingly spread and maintained by corporate media, is that a system of global markets still exists.

It doesn’t.

Every element of global economic trade is controlled and exploited by massive institutions, multinational banks and multinational corporations. Institutions like the World Trade Organization (WTO) and World Bank control trillions of dollars in economic activity.

Underneath that economic activity there are people who hold the reigns of power over the outcomes. These individuals and groups are the stakeholders in direct opposition to principles of America-First national economics. Collectively known as “The Big Club”.

The modern financial constructs of these entities have been established over the course of the past three decades. When you understand how they manipulate the economic system of individual nations you begin to understand why they are so fundamentally opposed to President Trump.

In the Western World, separate from communist control perspectives (ie. China), “Global markets” are a modern myth; nothing more than a talking point meant to keep people satiated with sound bites they might find familiar. Global markets have been destroyed over the past three decades by multinational corporations who control the products formerly contained within global markets.

The same is true for “Commodities Markets”. The multinational trade and economic system, run by corporations and multinational banks, now controls the product outputs of independent nations. The free market economic system has been usurped by entities who create what is best described as ‘controlled markets’.

U.S. President Trump understood what had taken place. He used economic leverage as part of a broader national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions. The Big Club.

Understanding how trillions of trade dollars influence geopolitical policy, we begin to understand the three-decade global financial construct they seek to retain and protect.

That is, global financial exploitation of national markets.

FOUR BASIC ELEMENTS:

♦Multinational corporations purchase controlling interests in various national outputs (harvests and raw materials), and ancillary industries, of developed industrial western nations. {example}

♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks. (*Note* in China it is the communist government underwriting the purchase.)

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Against the backdrop of President Trump confronting China; and against the backdrop of NAFTA renegotiated; and against the necessary need to support the key U.S. steel and aluminum industries; revisiting the economic influences within the modern import/export dynamic will help conceptualize the issues at the heart of the matter.

There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.

For three decades economic “globalism” has advanced, quickly. Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?

Influential people with vested financial interests in the process have sold a narrative that global manufacturing, global sourcing, and global production was the inherent way of the future. The same voices claimed the American economy was consigned to become a “service-driven economy.”

What was always missed in these discussions is that advocates selling this global-economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress.

It’s not.

It’s not natural at all. It is a process that is entirely controlled, promoted and utilized by large conglomerates, lobbyists, purchased politicians and massive financial corporations.

Again, I’ll try to retain the larger altitude perspective without falling into the traps of the esoteric weeds. I freely admit this is tough to explain and I may not be successful.

Bulletpoint #1: ♦ Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.

This is perhaps the most challenging to understand. In essence, thanks specifically to the way the World Trade Organization (WTO) was established in 1995, national companies expanded their influence into multiple nations, across a myriad of industries and economic sectors (energy, agriculture, raw earth minerals, etc.). This is the basic underpinning of national companies becoming multinational corporations.

Think of these multinational corporations as global entities now powerful enough to reach into multiple nations -simultaneously- and purchase controlling interests in a single economic commodity.

A historic reference point might be the original multinational enterprise, energy via oil production. (Exxon, Mobil, BP, etc.)

However, in the modern global world, it’s not just oil; the resource and product procurement extends to virtually every possible commodity and industry. From the very visible (wheat/corn) to the obscure (small minerals, and even flowers).

Bulletpoint #2 ♦ The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

During the past several decades national companies merged. The largest lemon producer company in Brazil, merges with the largest lemon company in Mexico, merges with the largest lemon company in Argentina, merges with the largest lemon company in the U.S., etc. etc. National companies, formerly of one nation, become “continental” companies with control over an entire continent of nations.

…. or it could be over several continents or even the entire world market of Lemon/Widget production. These are now multinational corporations. They hold interests in specific segments (this example lemons) across a broad variety of individual nations.

National laws on Monopoly building are not the same in all nations. Most are not as structured as the U.S.A or other more developed nations (with more laws). During the acquisition phase, when encountering a highly developed nation with monopoly laws, the process of an umbrella corporation might be needed to purchase the targeted interests within a specific nation. The example of Monsanto applies here.

Bulletpoint #3 ♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

With control of the majority of actual lemons, the multinational corporation now holds a different set of financial values than a local farmer or national market. This is why commodities exchanges are essentially dead.

In the aggregate the mercantile exchange is no longer a free or supply-based market; it is now a controlled market exploited by mega-sized multinational corporations.

Instead of the traditional ‘supply/demand’ equation determining prices, the corporations look to see what nations can afford what prices. The supply of the controlled product is then distributed to the country according to their ability to afford the price. This is essentially the bastardized and politicized function of the World Trade Organization (WTO). This is also how the corporations controlling WTO policy maximize profits.

Back to the lemons. A multinational corporation might hold the rights to the majority of the lemon production in Brazil, Argentina and California/Florida. The price the U.S. consumer pays for the lemons is directed by the amount of inventory (distribution) the controlling corporation allows in the U.S.

If the U.S. lemon harvest is abundant, the controlling interests will export the product to keep the U.S. consumer spending at peak or optimal price. A U.S. customer might pay $2 for a lemon, a Mexican customer might pay .50¢, and a Canadian $1.25.

The bottom line issue is the national supply (in this example ‘harvest/yield’) is not driving the national price because the supply is now controlled by massive multinational corporations.

The mistake people often make is calling this a “global commodity” process. In the modern era this “global commodity” phrase is particularly nonsense.

A true global commodity is a process of individual nations harvesting/creating a similar product and bringing that product to a global market. Individual nations each independently engaged in creating a similar product.

Under modern globalism this process no longer takes place. It’s a complete fraud. Massive multinational corporations control the majority of production inside each nation and therefore control the global product market and price. It is a controlled system.

EXAMPLE: Part of the lobbying in the food industry is to advocate for the expansion of U.S. taxpayer benefits to underwrite the costs of the domestic food products they control. By lobbying DC, these multinational corporations get congress and policy-makers to expand the basis of who can use Food Stamps, EBT and SNAP benefits (state reimbursement rates).

Expanding the federal subsidy for food purchases is part of the corporate profit dynamic.

With increased taxpayer subsidies, the food price controllers can charge more domestically and export more of the product internationally. Taxes, via subsidies, go into their profit margins. The corporations then use a portion of those enhanced profits in contributions to the politicians. It’s a circle of money.

In highly developed nations, this multinational corporate process requires the corporation to purchase the domestic political process (as above) with individual nations allowing the exploitation in varying degrees. As such, the corporate lobbyists pay hundreds of millions to politicians for changes in policies and regulations; one sector, one product, or one industry at a time. These are specialized lobbyists.

It is ironic when we discuss corporate financial payments to government officials in foreign countries we call them corrupt. However, in the United States we call it lobbying, the process is exactly the same.

EXAMPLE: The Committee on Foreign Investment in the United States (CFIUS)

CFIUS is an inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person (“covered transactions”), in order to determine the effect of such transactions on the national security of the United States.

CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (FINSA) (section 721), and as implemented by Executive Order 11858, as amended, and regulations at 31 C.F.R. Part 800.

The CFIUS process has been the subject of significant reforms over the past several years. These include numerous improvements in internal CFIUS procedures, enactment of FINSA in July 2007, amendment of Executive Order 11858 in January 2008, revision of the CFIUS regulations in November 2008, and publication of guidance on CFIUS’s national security considerations in December 2008 (more)

Bulletpoint #4 ♦ With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

The process of charging the U.S. consumer more for a product, that under normal national market conditions would cost less, is a process called exfiltration of wealth. This is the basic premise, the cornerstone, behind the catch-phrase ‘globalism’.

It is never discussed.

To control the market price some contracted product may even be secured and shipped with the intent to allow it to sit idle (or rot). It’s all about controlling the price and maximizing the profit equation. To gain the same $1 profit a widget multinational might have to sell 20 widgets in El-Salvador (.25¢ each), or two widgets in the U.S. ($2.50/each).

Think of the process like the historic reference of OPEC (Oil Producing Economic Countries). Only in the modern era massive corporations are playing the role of OPEC and it’s not oil being controlled, thanks to the WTO it’s almost everything.

Again, this is highlighted in the example of taxpayers subsidizing the food sector (EBT, SNAP etc.), the corporations can charge U.S. consumers more. Ex. more beef is exported, red meat prices remain high at the grocery store, but subsidized U.S. consumers can better afford the high prices.

Of course, if you are not receiving food payment assistance (middle-class) you can’t eat the steaks because you can’t afford them. (Not accidentally, it’s the same scheme in the ObamaCare healthcare system.)

Agriculturally, multinational corporate Monsanto says: ‘all your harvests are belong to us‘. Contract with us, or you lose because we can control the market price of your end product. Downside is that once you sign that contract, you agree to terms that are entirely created by the financial interests of the larger corporation; not your farm.

The multinational agriculture lobby is massive. We willingly feed the world as part of the system; but you as a grocery customer pay more per unit at the grocery store because domestic supply no longer determines domestic price.

Within the agriculture community, the (feed-the-world) production export factor also drives the need for labor. Labor is a cost. The multinational corps have a vested interest in low labor costs. Ergo, open border policies. (ie. willingly purchased Republicans not supporting border wall etc.).

This corrupt economic manipulation/exploitation applies over multiple sectors, and even in the sub-sector of an industry like steel. China/India purchases the raw material, coking coal, then sells the finished good (rolled steel) back to the global market at a discount. Or it could be rubber, or concrete, or plastic, or frozen chicken parts etc.

The ‘America First’ Trump-Trade Doctrine upset the entire construct of this multinational export/control dynamic. Team Trump focused exclusively on bilateral trade deals, with specific trade agreements targeted toward individual nations (not national corporations).

‘America-First’ is also specific policy at a granular product level looking out for the national interests of the United States, U.S. workers, U.S. companies and U.S. consumers.

Under President Trump’s Trade positions, balanced and fair trade with strong regulatory control over national assets, exfiltration of U.S. national wealth is essentially stopped.

This puts many current multinational corporations, globalists who previously took a stake-hold in the U.S. economy with intention to export the wealth, in a position of holding contracted interest of an asset they can no longer exploit.

Perhaps now we understand better how massive multi-billion multinational corporations, and the political institutions they pay for, were/are aligned against President Trump; and they will never relent in their need to see the risk he/we represents destroyed.

I will never relent in my support for anyone who fights this enemy.

I will align with and encourage anyone who joins this fight.

If you are looking for criticism against the only person I have ever witnessed who actually fought our correct enemy, look elsewhere.

I am thankful for President Trump.

CTH will never stop the fight….

.

Inflation Data Released Today Shows White House July 4th Price Claims Were Total Crap, Gas Prices Doubled, Annualized Total Inflation Rises to 5.4 Percent and Climbing


Posted originally on the conservative tree house on July 13, 2021 | Sundance | 115 Comments

On July 4th, a little more than a week ago, the White House made the preposterous claim that holiday food was cheaper than last year. Everyone who buys groceries knew that level of propaganda was unmitigated nonsense and the consumer pricing data released today shows exactly that.

According to the BLS, June prices jumped 0.9%. Every month this year the CPI has been rising faster than the prior month, which essentially means inflation is rising at an ever-increasing rate. Annualized inflation (June 2020 -vs- June 2021) now shows an overall inflation rate of 5.4%.

However, at a 0.9% monthly rate -if the level stabilizes- that means the real inflation rate is 10.8% Yeah, that’s a serious problem.

The BLS data (see table 7) shows that gasoline has doubled in price year-over-year. Unleaded regular gasoline is now 46.4% higher than last year. That level of fuel price increase is crushing the working class and blue collar workforce.

Inflation overall is currently rising three to four times faster than wages. That means real wages are dropping as Americans are paying more for everything, including fast turn consumable products like food and fuel. Again, we repeat… durable good sales will suffer as disposable income shrinks. Additionally, rising housing prices combined with diminishing blue collar wages is an unsustainable trend.

JoeBama economic policies are crushing the middle-class. The multinational corporations, Wall Street and the investment class benefit as Biden policies directly create a U.S. service driven economy {Go Deep}. Under JoeBama, the wage and wealth gap is growing again after three years of Trump policies closing it. Working class wages are dropping, and investment class earnings rise. This is the intentionally created outcome when America-First policies are cancelled.

Overall energy prices have jumped more than 32% year-over-year. This is a direct outcome of Biden policy. Used vehicle prices are up a whopping 45% vs 2020.

The financial media are working overtime to protect Joe Biden from the outcome of policy by deflecting blame to COVID-19, but the issues are far more substantive than their weak justifications. All of this was predictable. After several months of claiming the inflation was transitory or temporary, now the same financial media are shifting the narrative to say we need to just accept long term inflation is the new normal.

I cannot express my frustration adequately as we watch this play out and know how much propaganda is being pushed to justify it.  {Go Deep} and {Go Deep}.  CTH has outlined for years how these direct economic outcomes are a result of actual government policy.

Everything the Biden administration is doing is making things worse, and now we are seeing big drops in real wages as the inflation rate is far beyond wage growth. Under Biden inflation is massive and wage growth is non-existent. This is an exact reversal of the Trump-era outcome where inflation was low and wage growth rates were high.

You might remember when President Trump initiated tariffs against China (steel, aluminum and more), Southeast Asia (product specific), Europe (steel, aluminum and direct products), Canada (steel, aluminum, lumber and dairy specifics), the financial pundits screamed at the top of their lungs that consumer prices were going to skyrocket.  They didn’t.  CTH knew they wouldn’t because essentially those trading partners responded in the exact same way the U.S. did decades ago when the import/export dynamic was reversed.

Trump’s massive, and in some instances targeted, import tariffs against China, SE Asia, Canada and the EU not only did not increase prices, the prices of the goods in the U.S. actually dropped.  Trump’s policies led the largest deflation in consumer prices in decades.  At the same time Trump’s domestic economic policies drove employment and  wages higher than any time in the past forty years.  With Trump’s policies we were in an era where job growth was strong, wages were rising and consumer prices were falling.  The net result was more disposable income for the middle class, more demand for stuff, and ultimately that’s why the U.S. economy was so strong.

Going Deep –  To retain their position China, the EU responded to U.S. tariffs by devaluing their currency as an offset to higher prices.  It started with China because their economy is so dependent on exports to the U.S.

China first started subsidizing the targeted sectors hit by tariffs. However, as the Chinese economy was under pressure they stopped purchasing industrial products from the EU, that slowed the EU economy and made the impact of U.S. tariffs, later targeted in the EU direction, more impactful.

When China (total communist control over their banking system) devalued their currency to avoid Tariff price increase, it had an unusual effect.  The cost of all Chinese imports dropped, not just on the tariff goods.  Imported stuff from China dropped in price at the same time the U.S. dollar was strong.  This meant it took less dollars to import the same amount of Chinese goods; and those goods were at a lower price.  As a result ,we were importing deflation…. the exact opposite of what the financial pundits claimed would happen.

In response to a lessening of overall economic activity, the EU then followed the same approach as China.  The EU was already facing pressure from the exit of the U.K. from the EU system; so, when the EU central banks started pumping money into their economy and offsetting with subsidies, they essentially devalued the euro.  The outcome for U.S. importers was the same as the outcome for U.S-China importers.  We began importing deflation from the EU side.

In the middle of this there was a downside for U.S. exporters.  With China and the EU devaluing their currency, the value of the dollar increased.  This made purchases from the U.S. more expensive.  U.S. companies who relied on exports (lots of agricultural industries and raw materials) took a hit from higher export prices. However, and this part is really interesting, it only made those companies more dependent on domestic sales for income.  With less being exported there was more product available in the U.S for domestic purchase…. this dynamic led to another predictable outcome, even lower prices for U.S. consumers.

From 2017 through early 2020, U.S. consumer prices were dropping. We were in a rare place where deflation was happening.  Combine lower prices with higher wages and you can easily see the strength within the U.S. economy.  For the rest of the world this seemed unfair, and indeed they cried foul – especially Canada.

However, this was America First in action.  Middle-class Americans were benefiting from a Trump reversal of 40 years of economic policies like those that created the rust belt.

Industries were investing in the U.S. and that provided leverage for Trump’s trade policies to have stronger influence.  If you wanted access to this expanding market, those foreign companies needed to put their investment money into the U.S. and create even more U.S. jobs.   This was an expanding economic spiral where Trump was creating more and more economic pies.  Every sector of the U.S. economy was benefiting more, but the blue-collar working class was gaining the most benefit of all.

♦ REVERSE THIS… and you now understand where we are with inflation.   The Joebama economic policies are exactly the reverse.  The monetary policy that pumps money into into the U.S. economy via COVID bailouts and federal spending drops the value of the dollar and makes the dependency state worse.

With the FED pumping money into the U.S. system the dollar value plummets.  At the same time,  JoeBama dropped tariff enforcement to please the Wall Street multinational corporations and banks that funded his campaign.  Now, the value of the Chinese and EU currency increases.  This means it costs more to import products and that is the primary driver of price increases in consumer goods.

Simultaneously a lower dollar means cheaper exports for the multinationals (Big AG and raw materials).  China, SE Asia and even the EU purchase U.S. raw materials at a lower price.  That means less raw material in the U.S. which drives up prices for U.S. consumers.  It is a perfect storm.  Higher costs for imported goods and higher costs for domestic goods (food).  Combine this dynamic with massive increases in energy costs from ideological policy and that’s fuel on a fire of inflation.

Annualized inflation is now estimated to be around 8 percent, and it will likely keep increasing.  This is terrible for wage earners in the U.S. who are now seeing no wage growth and higher prices.  Real wages are decreasing by the fastest rate in decades.  We are now in a downward spiral where your paycheck buys less.  As a result, consumer middle-class spending contracts.  Eventually this means housing prices drop because people cannot afford higher mortgage payments.

Gasoline costs more (+50%), food costs more (+10% at a minimum) and as a result real wages drop; disposable income is lost.  Ultimately this is the cause of Stagflation. A stagnant economy and inflation.  None of this is caused by COVID-19.  All of this is caused by economic policy and monetary policy sold under the guise of COVID-19.

This inflationary period will not stall out until the U.S. economy can recover from the massive amount of federal spending.  If the spending continues, the dollar continues to be weak, and as a result the inflationary period continues.  It is a spiral that can only be stopped if the policies are reversed…. and the only way to stop these insane policies is to get rid of the Wall Street Democrats and Republicans who are constructing them.

Wells Fargo – Banking Crisis?


Armstrong Economics Blog/Banking Crisis Re-Posted Jul 12, 2021 by Martin Armstrong

It has begun. Wells Fargo has told all its customers that it is shuttering down ALL personal lines of credit. The bank has made it clear that it is shutting down ALL existing personal lines of credit and it will no longer offer such products. That includes revolving credit lines, which typically let users borrow $3,000 to $100,000. The bank used to sell these products as a way to consolidate higher-interest credit card debt or to pay for home renovations. This also included avoiding overdraft fees on linked checking accounts.

Customers have been given a 60-day notice that their accounts will be shut down. Wells Fargo has declined to comment when asked by Reuters. Previously, Wells Fargo suspended home equity loans, claiming it was due to the economic uncertainty with COVID. Wells Fargo has been struggling with a tarnished reputation following a series of consumer financial scandals. In 2016, the Wells Fargo account fraud scandal led to the resignation of CEO John Stumpf and resulted in fines of $185 million by the Consumer Financial Protection Bureau.

Despite the fact that Wells Fargo Bank likes to portray it was formed on March 18, 1852, the truth is that it was simply a freight company back then. It was in New York City where Henry Wells and William G. Fargo joined with several other investors to launch their idea of a freight company to cover the trade between the East and West Coasts. What sparked the idea was the discovery of gold in California in 1849. They recognized that there would be a demand for cross-country shipping. Wells Fargo & Company was formed to take advantage of this great opportunity.

In July 1852, Wells Fargo & Co began its first loads of freight from the East Coast to mining camps scattered throughout northern California. The company contracted with independent stagecoach companies to provide the fastest possible transportation and delivery of gold dust, mail, and other various valuable freight. Wells Fargo began buying gold dust, selling paper bank drafts, and providing loans to help fuel California’s growing economy.

In 1857, the business was so profitable that Wells, Fargo & Co. formed the Overland Mail Company, known as the “Butterfield Line,” which provided regular mail and passenger service. The company earned a reputation as a trustworthy and reliable business. It adopted as its logo the classic stagecoach which became famous even in later movies. Wells Fargo & Co. would also send an employee on horseback to deliver or pick up a message or package which became known as the Pony Express.

There were other competitors. John Bamber first advertised July 12, 1858, as the only authorized for daily and weekly newspapers. On September 9, 1870, Bamber incorporated as “Bamber Express Co.” with four other trustees.  Then on January 1, 1874, a change in ownership was announced. On July 6, 1874, it was announced that Whitney & Co. Express had purchased the company.

Wells Fargo & Co. began a merger and acquisition taking over other Pony Express and stagecoach lines. Wells Fargo took over the Overland Mail Company in 1860. Six years later, Holladay Express was added. By this time,  Wells Fargo & Co emerged and the leader in transportation in the West. When the transcontinental railroad was completed three years later, the company began using the railroad to transport its freight. In 1905, the company split whereas the freight business stood separately and they embarked on banking. Wells Fargo took over the Nevada National Bank and established new headquarters in San Francisco. By 1910, the freight company was covering 6,000 locations from the Eastern urban centers connecting them to the Midwest farmers and then ranchers and miners from Texas to California as well as the Pacific Northwest where the lumber mills operated.

During World War I, the U.S. government nationalized Wells Fargo’s shipping routes and combined them with the railroads into the American Railway Express. This actually terminated Wells, Fargo & Co. as a transportation and delivery business. The banking side was hit by the 1906 San Francisco Earthquake, but the vaults held up while the building collapsed. After World War II, the Wells Fargo Bank American Trust Company reduced its name to just Wells Fargo Bank in 1962.

Wells Fargo from its split which was decided in 1904, peaked on the 112-year cycle in 2016. While it elected two of the near-term Yearly sell signals, the first long-term resides at $28.80. A year-end closing below that will be the kiss of death for Wells Fargo.

Soros & the Pound


Armstrong Economics Blog/Foreign Exchange Re-Posted Jul 9, 2021 by Martin Armstrong

Many questions have come about my post on Soros and how the pound was different from a floating exchange rate. Soros took the lead, but everyone in the club was on that trade. Europe created the ERM which was fixing the European currencies against one another which was the prelude to the Euro. This is why they drove Margate Thatcher out of office because she opposed joining the Euro. Her cabinet revolted because they wanted to kill the pound and join the Euro.

After pushing her out of the office kicking her to the side like she was a dog they just ran over and left her for dead, they reversed her policies that caused a financial crisis. They swiftly took the pound into the ERM in preparation for joining the Euro. Of course, pride and politics came into play and the John Major government overvalued the pound in the ERM fixed rate which was unsustainable. His campaign promise was that he would NEVER devalue the pound.

Because I had advised Maggie against joining the Euro when Soros et al began shorting the pound it was a guaranteed trade. If the pound broke, they make a fortune. If they were wrong they lost nothing because it was a FIXED exchange rate. This was one of the reasons I was being called in around the world because politicians tried to fix currencies, and when they broke such pegs, they would always blame speculators.

This was like going to a casino and putting all your money on red at the roulette table, and when black comes out, they handed your chips back. This was the Financial Crisis of 1992-1993.

Betting against a peg or fixed exchange rate is a guaranteed trade. I was named Forex Person of the Year 2015 because the Swiss Peg broke when nobody expected it assuming governments are all-powerful.

Soros is NOT Targeting the Dollar


Armstrong Economics Blog/Corruption Re-Posted Jul 9, 2021 by Martin Armstrong

QUESTION: I believe there is a guy on YouTube ripping you off and claiming Soros is now targeting the dollar which he will destroy just as he did to the pound. Is Soros even capable of that? You said he was just the lead guy on that for the club. Care to comment?

DH

ANSWER: Anyone claiming Soros is now targeting the dollar is absolute garbage. The entire pound issue was that it was a FIXED rate in the European Rate Mechanism. It was a cheap play. If you were wrong, you lost nothing because it was a fixed exchange rate. Soros would NEVER go against a floating currency. He would be wiped off the face of the Earth. This is total nonsense. If this is their sales pitch to buy Bitcoin or something, they could face 20 years in jail. It is totally FALSE advertising — PERIOD!