Posted originally on the Conservative tree house on June 28, 2021 | sundance | 249 Comments
As we have mentioned previously, the United States Department of Justice is prepared to use federal law enforcement (FBI) to secure their position. The purpose of the announcements should be clear to everyone. We discussed and outlined the background previously. {Go Deep 1} and {Go Deep Two}
In the background of these maneuvers corporate Big Tech, corporate U.S. media and those DC politicians under the control of multinational corporations, have been instructed to push the “domestic extremist” narrative.
Any organized and articulate truth-tellers are considered subversive, ie. against the interests of the U.S. government. The January 6th DC protest is being used as an illustrative example for that narrative.
In an intelligence community controlled operation (ex. General Stanley McCrystal), ideological deplatforming, censorship, content removal and ultimately control of voices who would warn of larger issues, continues daily. […] “The group, Defeat Disinfo, will use artificial intelligence and network analysis to map discussion of [opposition] claims on social media. It will seek to intervene by identifying the most popular counter-narratives and boosting them through a network of more than 3.4 million influencers across the country — in some cases paying users with large followings to take sides against [their opposition].” (source)
Let me be very clear… stop and hear the drums… Something is about to happen. Approximately 100 million American voters are considered dissidents now. Meanwhile the FBI is preparing for the American people to implement a grassroot solution to deal with a corrupt federal government; a solution I would call “extreme federalism”.
The solution to the scale of DC corruption is local and state action using the constitution, specifically the 10th amendment, against the advancing overreach of corrupt DC officials.
Extreme federalism is local and state government refusing to comply, totally ignoring, unconstitutional demands by the federal government. This approach can become visible in varying degrees of intensity. State laws protecting voting integrity is only one facet.
Beyond simple legislative push-back, imagine if the State of Texas refused to facilitate any task for the border visit by Kamala Harris. No Texas state trooper escorts, no security, no facilitation once the White House entourage exits the airport. Extreme federalism is the intentional use of the state right provisions outlined within the constitution to stop facilitating federal offices of any form or function.
Imagine if FBI field offices were forced to close by state action taking back ownership of the property by eminent domain. Imagine if state national guard elements were instructed not to comply with federal requests for support. Extreme federalism is local sheriffs, constitutional officers, rebuking unconstitutional decrees and refusing to comply with federal agencies.
Extreme federalism is executed along the same concept of “sanctuary cities” or “sanctuary states” defying federal law. However, extreme federalism is the reverse scenario where the unconstitutional efforts are identified by states who create sanctuaries for law-abiding citizens who forcefully demand representative government and self-determination.
Extreme federalism is a reaffirmation of the original intent of the United States constitution, and we do not need F-15s and nuclear weapons to achieve it. What we need is strong–will, brave state-level leadership and unrelenting citizen determination. We The People are the people we have been waiting for.
Parents and citizens confronting Marxist indoctrination within ideological school boards is one example. That is why the Feds & Media are fighting back against visible grassroot activity. They can sense this approach gaining wider acceptance as local populations see success in their efforts.
Local Sheriffs may soon align with the population they are sworn to protect and serve; that enhances the risk to the federal collective mindset.
State legislatures and State Governors taking back absolute control from federal overreach is a bottom up way for extreme federalism to have massive impact. Local congressional district elections are then fought-out based on the priority of the local community. Again, more original intent that is adverse to the federal collective.
Those behind the Biden administration, those who worked within the corrupt system to put him in office, can see how they might well lose control if this continues. They are acting exactly as we would expect given this growing reality.
Posted originally on the conservative tree house on June 28, 2021 | Sundance | 367 Comments
Governor Ron DeSantis, the information highlighted in the example below is provided as affirmation to what you likely already know; however, I provide the enhanced granular background to contemplate as you look toward the horizon. This information is provided publicly because there is a purposeful reason to continue pulling back the curtain for a larger electoral awakening.
As a former congressman you know the duplicity of the bureaucratic federal system that you left behind. The traditional framework of three co-equal branches of government has been usurped by a larger and deeper network now represented by terminology describing the intelligence community. The example below highlights just one way the system is self-protecting.
On October 19, 2020, former U.S. Attorney General Bill Barr appointed John Durham as special prosecutor under authorities provided by DOJ regulations [28 cfr 600]. However, AG Bill Barr did not tell the public at the time of the appointment. Within the original appointment AG Barr notes the reason for doing this quietly [Page 2, Paragraph (e)]:
“Pursuant to 28 C.F.R. § 600.9(b), I have determined that the notification requirement … should be tolled until at least after the November 3, 2020 election because legitimate and investigative privacy concerns warrant confidentiality.“
In essence, AG Bill Barr stated he did not want to impact the 2020 presidential election with a notification to congress or the public of this appointment. While the justification for this approach is clearly within the unspoken rules of the DOJ not wanting to give the impression of interference in political elections, we must also accept these unspoken DOJ rules only flow in one direction – when Democrat party politicians need to be protected.
However, beyond the justification for not informing the public that U.S. Attorney John Durham was now empowered with special prosecutor authorities before the 2020 presidential election, there are much bigger issues that surface; and this must be accepted and discussed in its purposeful totality.
♦ Notification of the special prosecutor appointment did not surface until December 1, 2020, when AP journalist Michael Balsamo first wrote about it (SEE HERE). Based on a recent widely-viewed article published in the Atlantic, we now know Balsamo was summoned by AG Barr to Main Justice for an informal lunch were several issues were discussed: “Barr’s betrayal came on December 1, over lunch in the attorney general’s private dining room with Michael Balsamo, a Justice Department beat reporter at the Associated Press.” (link)
The most recent headlines surround AG Bill Barr telling Mr. Balsamo: “To date, we have not seen fraud on a scale that could have effected a different outcome in the election,” thus the current narrative du jour. However, in hindsight we can now enhance the background of that Dec. 1st meeting between AG Bill Barr and AP journalist Michael Balsamo to include the attorney general informing the AP about the appointment of John Durham as a special prosecutor. Balsamo wrote about the Durham appointment on that exact date, December 1, 2020.
The reason for drawing your attention to the timeline is to emphasize the nature of how the DOJ, in this example AG Bill Barr, coordinates with specific intent to make certain information public at certain times, while holding back information that may be adverse to DOJ interests which are often political.
Additionally, and very importantly, do not let it go without emphasis how a special prosecutor appointment would NEVER remain secret, without leaks, from personnel within the larger DOJ institution who are in close and frequent contact with their allies in the media.
Given the scope of known leaks from the DOJ is it almost certain the New York Times, Washington Post and Politico knew of the October 19th appointment, but did not report on it because the background material was adverse to their collective interests.
Now, please allow me to highlight the obvious and more alarming political motive; this is where a larger understanding of duplicity becomes even more important.
♦ We find out on December 1st (after the election) that AG Bill Barr previously appointed John Durham as a special counsel to investigate criminal matters on October 19, 2020. AG Bill Barr notified the Associated Press (Michael Balsamo) and the Senate Judiciary Committee on the *exact same day. The sequence is: Barr tells the media, then Barr tells congress:
*It is critical to understand how the DOJ system operates at a political level -when they have a very specific political intent- while noting the dates of activity and the dates of notification of that activity; two very different dynamics.
Given the background of information on how Bill Barr operated as a U.S. Attorney General, we can now see the specific intent for the AG to appoint Durham on that specific date, in that specific way.
(1) The shift in the investigative definition/authority now locked down President Trump from demanding the pre-election release of any information that might touch upon the Durham special counsel purview. Any request by President Trump would now be met with the familiar shield of an “ongoing investigation“. You will note this was one of the primary purposes of the Rod Rosenstein appointed Robert Mueller special counsel, and this shield was deployed against the office of the President numerous times when the president requested information be made public. The administrative state is self-protecting.
(2) Notice the date of the appointment, October 19, 2020. This date blocked the President from demanding public release and simultaneously fell just 93 days before the Biden inauguration of Jan 20, 2021. This provided Joe Biden one week to use the 100 day back-look nullification of executive branch action. In essence, Biden could have easily ended the Durham probe if he wanted. Strategic timing.
(3) Additionally, notice how AG Bill Barr provided another exit if needed. Under DOJ regulations [28 cfr 600] a special counsel must come from “outside government“; John Durham was not outside government and did not resign his position prior to the appointment. Bill Barr gave the appearance of a special counsel appointment while knowing the legal validity could easily collapse upon challenge (if the Biden administration choose):
“(a) An individual named as Special Counsel shall be a lawyer with a reputation for integrity and impartial decisionmaking, and with appropriate experience to ensure both that the investigation will be conducted ably, expeditiously and thoroughly, and that investigative and prosecutorial decisions will be supported by an informed understanding of the criminal law and Department of Justice policies. The Special Counsel shall be selected from outside the United States Government. Special Counsels shall agree that their responsibilities as Special Counsel shall take first precedence in their professional lives, and that it may be necessary to devote their full time to the investigation, depending on its complexity and the stage of the investigation.” (link)
Obviously Bill Barr is a smart man. He would know the regulations he cites would require the special counsel to come from “outside the U.S. government,” thus such a simple flaw cannot be looked upon as anything except purposeful.
(4) If the 2020 election outcome did not remove President Trump, notice the special counsel appointment would have continued to hamstring him and keep the administrative state protected from sunlight. Yet, another insurance policy put into place amid a variety of DOJ and FBI insurance policies deployed.
Everything within the Durham appointment as special counsel, the timing, the justification for secrecy, the manner & method, and later the way it was revealed through AP journalist Michael Balsamo points to a coordinated strategy. Note the “kick the can” aspect to the strategy began well before the 2020 election.
Returning to the original -albeit hidden at the time- date of the appointment… October 19, 2020, someone around President Trump was informed about the shift in the Durham probe to a special counsel; and someone justified to the president why that special counsel would remain hidden. Perhaps Bill Barr himself, but I doubt it. It is more likely a ‘high level’ DOJ official put the spin on the appointment to someone like Mark Meadows or the White House counsel.
How do we know that President Trump was informed, manipulated and conned?…
Listen to this very specific speech segment he gave on October 19, 2020, the exact date of Durham becoming a special prosecutor, from Prescott Arizona:
Kamala finally made the trip to the border, although it was really just the airport in El Paso.
During Trump’s speech on Saturday he mentioned that Biden had violated his oath by not protecting our borders. In other words, China Joe failed to protect America. In fact, Biden encouraged illegal aliens to pour in and get free stuff on the taxpayer’s dime.
That’s exactly what they did—they’ve been arriving in droves and from many countries—not just Central American ones. Biden ordered those caught to be released. Kamala concurred. That is, she did before she became Vice Resident. Now she’s changed her tune and weakly asked them all not to come.
Trump was adamant about closing our southern border. He began construction on walls. Ice and the Border Patrol were allowed to do their jobs. Trump sent out a strong message and the flow of ‘migrants’ dwindled.
Kamala made a half-hearted attempt to visit the border, but all she did was visit El Paso. In reality it’s most likely she wants to keep the borders open. She and Joe know the illegal newcomers will most likely illegally vote for Democrats. The Socialist Democrats may be in for surprise though. Many Mexican Americans side with Trump because he represents law and order. Latinos have strong family and religious values. They could be voting Republican in the mid-terms. They know an open border invites crime including child abuse, women getting raped, and a giant influx of drugs and crime. Americans, regardless of ethnicity, don’t want that.
This bipartisan deal on new infrastructure spending that President Biden has reached this week with a group of “moderate” Democrats and “liberal” Republicans in the Senate represents a significant departure with respect to the Internal Revenue Service. Hidden within the claimed “infrastructure bill” you find $40 billion to beef up the IRS to hunt down everyone they can once again. The Biden White House is out to attack not the super-rich because they have everything in foundations and trusts which are tax-exempt. They will be targeting small businesses and harass them further if they survived the lockdowns. Those that did not will be investigated for fraud.
The budget of the IRS was reduced because they were abusing their power back in 2010. The IRS has seen its budget shrink by one-fifth between 2010 and 2018. It was not just Obama targeting the Tea Party. It was Republicans which included John McCain – the same guy who handed Comey Hillary’s fake dossier on Trump.
Perhaps you will recall Lois Lernerwho was the IRS former executive who was at the heart of a scandal involving the deliberate targeting of political opponents of the Obama administration. The DOJ waited for almost two years to dispose of this case quietly with never a prosecution even after Lerner herself apologized for targeting Tea Party groups. Those in government service who violate the law which is for the benefit of the government are NEVER prosecuted for their crimes.
Today, we have five “moderate” Republican senators who have unleashed the IRS once again to resume its biased political attacks of targeting people for tax evasion. These Republicans have signed off on the deal but they have betrayed their own party for allowing this to be covered up. The investigative news outlet ProPublica published a story based on a vast trove of leaked confidential tax data for the richest Americans. The IRS is at it again.
This is why the Founding Fathers prohibited direct taxation which Congress repealed in 1913. Once you have direct taxation, they can bankrupt anyone by simply launching a massive tax investigation and your legal bills will go through the roof and they are doing it simply for political purposes. This is why I have been in favor of REPEALING the income tax and replace it with an indirect tax such as a national sales tax. They used the tax code to imprison Al Capone.
The government prosecutors wanted Al Capone the same as people who want to hunt or fish and score a big one. They targeted Capone for everything and anything. Capone and his bodyguard were arrested in Philadelphia for carrying concealed deadly weapons and within less than one day they were sentenced to one year in prison without a public trial. Capone was released on March 17, 1930. Then on February 28, 1931, Capone was found guilty in federal court on a contempt of court charge and was sentenced to six months in Cook County Jail. His appeal was of course dismissed. There is no power more abused than the contempt of court charge where the person who accuses you then judges and sentences you without any independent observation.
The Department of Justice prosecutors, unable to bring a criminal case, called in the U.S. Treasury Department which developed a case for tax evasion. They used taxes to go after all the mobsters because they could not find any other evidence to prosecute them on. Therefore, they used tax evasion against Al Capone, his brother Ralph “Bottles” Capone, Jake “Greasy Thumb” Guzik, Frank Nitti, and other mobsters. Finally, on June 16, 1931, Al Capone was charged and pled guilty to tax evasion and prohibition charges based upon a deal for a two-and-a-half-year sentence.
However, the same presiding judge who sentenced Capone for contempt, James Herbert Wilkerson (1869–1948), informed Capone he was not bound by any such deal. Capone then changed his plea to not guilty. Wilkerson was not about to let Capone off easy despite the fact they could not charge him with a serious crime. The prohibition was repealed by FDR 2 years later. On October 18, 1931, Capone was convicted after a mock trial, and on November 24, Judge Wilkerson sentenced him to eleven years in federal prison, fined $50,000, and charged $7,692 for court costs, in addition to $215,000 plus interest due on back taxes. The six-month contempt of court sentence was at least served concurrently. Wilkerson hated Capone and made the case abuse of process carried out by a biased judge.
Capone was confined to the Cook County Jail and of course a political case of this nature had all appeals denied. Capone entered the U.S. Penitentiary in Atlanta, serving his sentence there, and was then transferred to the infamous Alcatraz. It was alleged that Capone was denied medical treatment which is really on par for high-profile cases. On November 16, 1939, Al Capone was released after having served seven years, six months, and fifteen days, and having paid all fines and back taxes. His health deteriorated greatly during his confinement. Immediately on release, Capone entered a Baltimore hospital for brain treatment. He was released and moved to his Florida home, an estate on Palm Island in Biscayne Bay near Miami. He never recovered and died with his family due to a stroke and pneumonia on January 25, 1947. Such is the fate of high-profile cases in America.
If it were not for the INCOME TAX, Al Capone would never have gone to prison. Even Prohibition was a failed experiment that actually made the Mafia. The Mafia was respected among the Italian community because they would even counterfeit food ratios during World War I to ensure the community was fed and did not starve.
It was making liquor illegal that created a profitable opportunity for the Mafia which in the United States was entirely different from that in Sicily. Indeed, in Sicily, the term “mafioso” had no criminal connotations and was used to refer to a person who was suspicious of central authority – an anti-government faction. During the 19th century, some of these groups emerged as private armies to protect the people from the government. This evolved where some began to extorted protection money from landowners to protect them from the corrupt government. Eventually, some factions became violent criminal organizations which turning the original protection into a means to extort money which then began the Sicilian Mafia. The American Mafia, however, did not rise to power until the prohibition and they too began as an admired protector of the people.
I find it really amazing how these Democrats constantly preach fairness, equality and the rich are the blame for everything, yet people like Dianne Feinstein have just listed her $41M Lake Tahoe estate for sale. Their spouse is always extraordinarily lucky in deals that somehow connect back to political favors. Sen. Dianne Feinstein’s husband was named in the College Admissions Scandal. Her husband, Richard Blum, benefited from being involved with a company to sell United States Postal Service property. The company, CBRE Group, won a contract to sell postal facilities. Blum is its board chairman and owns an investment firm that holds an interest in its stock. The question has always been; did he get inside information and preferential treatment in what they called a competitive bid. In the real world, when my son was in college and getting just a summer job at a brokerage firm to learn the business, the entire family had to reveal what stocks they owned right down to my mother just to get a summer job. Politician’s families never reveal anything of that nature.
DianneDinane herself was employing a Chinese spy. There is never any accountability and nobody ever asks, how in the world do politicians have such wealth and they never worked in the private sector?
Posted originally on the conservative tree house on June 27, 2021 | Sundance | 372 Comments
There has been a lot of discussion today about an Atlantic article [SEE HERE] containing an outline of former AG Bill Barr’s discussion with reporters and the White House in the aftermath of the 2020 election. In essence the nub of the article is Bill Barr stating to a journalist December 1st: ” To date, we have not seen fraud on a scale that could have effected a different outcome in the election,” and then the article covers the fallout with the White House from that AP interview.
AG Barr called Michael Balsamo to his office in Main Justice to make the statement over lunch:
ATLANTIC – […] Balsamo’s story appeared on the AP newswire shortly after lunch ended: “Disputing Donald Trump’s persistent baseless claims, Attorney General William Barr declared Tuesday the U.S. Justice Department had uncovered no evidence of widespread voter fraud that could change the outcome of the 2020 election.”
The story blew a hole in the president’s claims. Nobody seriously questioned Barr’s conservative credentials or whether he had been among Trump’s most loyal cabinet secretaries. His conclusion sent a definitive message that the effort to overturn the election was without merit. (read more)
That last paragraph perfectly encapsulates the entire purpose for AG Bill Barr to be in place since February of 2019. To present the image of a loyal cabinet secretary so that no-one could/would question his conservative credentials. That purpose was exactly what CTH presented upon the nomination and confirmation of Bill Barr. His job was to be the bondo that covered the rot in DC and gave the illusion of a healthy functioning justice department. We called it “Bondo Barr“.
There is a specific irony of Bill Barr using Wayne County, Michigan, as “no evidence” of ballot fraud while simultaneously admitting no other area other than Wayne county has voting precincts that do not count ballots. Only in Wayne county do the 662 precincts deliver ballots to a central counting facility. The Wayne County process itself is designed specifically to make ballot fraud easier…. The former AG says move along, move along, nothing to see here… “that’s what they do.”
The timing of this article release to coincide with the DOJ challenging election reforms in Georgia, combined with the Arizona audit finishing up their initial hand recount and verification of ballots, does not seem coincidental.
As most CTH readers are aware the legislative, executive and judicial narrative engineers work in coordination with their media conscripts and at the behest of the intelligence apparatus. In the private sector the BlackRock and Vanguard multinationals, and the CoC Wall Street, money builds the bridge to deliver the finished outcome.
Under this process the U.S. government is functioning exactly as it was designed when it was “fundamentally transformed”; the corrupt outcomes are a feature, not a flaw.
Rather than use this article to once again draw attention to the corrupt intents and purposes of Bill Barr as the professional bondo applier, it is worth taking a pause to think carefully about another angle. Think about all those voices, specifically pundits in media, who stood up to say Bill Barr is a man of integrity and will be the person to get to the bottom of the ‘spygate‘ corruption issues. Remind yourself of exactly who those voices were…. Then recognize the intent of that drumbeat.
That list would include: Trey Gowdy, Mitch McConnell, Lindsey Graham, Jonah Goldberg, Kevin McCarthy, Marco Rubio, Sean Hannity, Sara Carter, John Solomon, Mark Levin, Laura Ingraham, Johnathan Turley, Joe diGenova and Victoria Toensing etc. etc.
Days after his confirmation in 2019 CTH noted something was sketchy about Bill Barr because of a very simple and common sense issue – everyone in/around DC knew Robert Mueller was in place to cover-up the corrupt DOJ and FBI activity and keep attacking the office of President Trump. Not a single person in DC did not know this intention of the special counsel. They never talked about it publicly, but every person in every office and every agency in DC knew Mueller’s purpose.
In the first few weeks after his confirmation AG Bill Barr spent an extreme amount of time praising Robert Mueller for his work as special counsel and vouching for his integrity. That continued praise for Mueller and Barr also heaping effusive praise on FBI Director Chris Wray, was when CTH accepted the brutally obvious, Bill Barr’s job was to apply Bondo to cover the rot.
“Every day we spend outraged about what the DOJ and FBI did in 2016 and 2017, is one less day that AG Bill Barr is not being held accountable for all of this current DOJ and FBI corruption that stares him in the face when he brushes his teeth each morning.” ~ CTH, 2019
Barr played that outrage distraction game perfectly…
Posted originally on the conservative tree house on June 26, 2021 | Sundance | 51 Comments
Thousands of people descended on London’s Hyde Park on Saturday afternoon in the latest round of protests against Covid lockdown measures. The crowds marched through Oxford Street before gathering at Hyde Park while holding banners, placards and flags. The crowds of protesters (bottom left and bottom centre) marched through Oxford Street, Regent Street, Hyde Park and Northumberland Avenue as they held placards reading ‘freedom is not for trade’, ‘no to Covid vaccine’ and ‘no to the Covid passport’.
Demonstrators also made their way to Downing Street, with crowds setting off flares and chanting loudly with people heard shouting “shame on you” and pointing towards Number 10, followed by prolonged booing. Shirley Jones, a librarian from Crystal Palace, said: “I’d rather be doing something else with my weekend but I’m going to keep coming on these protests because I don’t trust what the Government is doing.
Posted originally on the conservative tree house June 26, 2021 | Sundance | 133 Comments
Several people have written to CTH for an economic review of our current status. Below this post are two primary precursor articles [Primary One and Primary Two] which outline the economic dynamic in play and how we can look forward with accuracy to what is likely to happen. Despite the deflective talking points by the professional financial pundits this massive spike in inflation is entirely predictable due to Biden economic policy and Biden monetary policy.
Keep in mind the FED has already said in April they would “support inflation” but that’s because while they will not say it openly they know there’s no way to stop it. The massive inflation is a direct result of the multinational agenda of the Biden administration; it’s a feature not a flaw, and it has nothing whatsoever to do with COVID. Also keep in mind the first group to admit what is to come are banks, specifically Bank of America, because the monetary policy is the cause.
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.
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 and 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, 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.
Hope that makes sense, and love to all.
~ Sundance
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Be patient, be respectful, be kind and caring toward all. Don’t look for trouble. However, when the time comes to get in the fight, drop the moral approach and fight for your family with insane ferocity. Fight like you are the third monkey on the ramp to Noah’s arc…. and damned if it ain’t starting to rain.
Posted originally on the conservative tree house on June 26, 2021 | Sundance | 12 Comments
Reposting an earlier article by request as more people are starting to understand why CTH has focused on the financial motivations behind the political ideology for over a decade. It is critical that people understand the landscape. Underline it. Study it. Research the issues and teach everyone about it.
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… Now, thankfully, there is a new awakening.
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Positive debate on solutions and constructive criticism of approach is always appropriate for our elected officials; heck, that is the essence of our discussion. However, recently there have been many critics of President Trump; many people only just now understanding the problem and proclaiming that President Trump specifically did not do enough to block, impede, stop and counteract the globalist forces that were/are aligned against his effort to Make America Great Again.
Hindsight is 20/20, but there are people who proclaim that Donald J Trump should have been more wise in his counsel; more selective in his cabinet; more forceful in his confrontation of corporate globalists. Let me be clear….
I will never join that crew of Trump critics because I have understood his adversary for decades. CTH did not just come around to the understanding of the enemy. CTH has been outlining the scope of the enemy, the scale of the specific war and the financial and economic power of the opposition for over a decade. We understand the totality of the effort it will take to stop decades of willful blindness amid the American people. We also see with clear eyes exactly what they are doing now, even with President Trump forcefully removed from office, to destroy the threat he still represents.
Donald J Trump was/is a walking red-pill; a “touchstone”: a visible, empirical test or criterion for determining the quality or genuineness of anything political. I have been deep enough into the network of the Deep State to understand the scale and scope of this enemy. 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.
Posted originally on the conservative tree house on June 26, 2021 | Sundance | 5 Comments
In April of this year the federal reserve announced they will support the economic agenda of the Biden administration by allowing rapid inflation. The FED was trying to provide cover for JoeBama’s economic plan. The era when the FED could impact inflation is long past. However, the Joe Biden policy impact will be clear, immediate and concise. The U.S. middle-class and blue-collar worker are about to be crushed under rising prices for consumable products.
Increases in inflation hit the working class (Main St) much harder than the investment class (Wall St) and financial elites. Factually the multinationals benefit from U.S. inflation as it puts pressure on domestic companies to ship their manufacturing overseas. Wall Street likes that. This dynamic has been an issue not-discussed by the financial media for decades. First, the Reuters article (when you see “commodity prices” think about the term “consumables”):
REUTERS – The U.S. Federal Reserve has signaled it will tolerate faster inflation for a time to cement the post-pandemic recovery and boost employment, but the side effect is likely to be a faster rise in commodity prices.
[…] After its latest meeting on Wednesday, the Federal Open Market Committee confirmed it will seek to achieve the *twin objectives of maximum employment and inflation at the rate of 2% over the longer run.
[*NOTE: in the new era of global economics these two are mutually exclusive. The FED is intentionally ignoring this point.]
[…] The committee noted price rises have been running persistently below target, so it aims to achieve inflation moderately above 2% for some time to make up the shortfall and anchor expectations at around the 2% level.
[…] The plan is to run the economy hot to achieve faster job gains, especially among disadvantaged groups that are marginally attached to the labour force, before shifting back to inflation control later in the cycle.
But the resulting pressure on global supply chains while the Fed pursues employment increases is likely to generate significantly quicker price rises for raw materials and a range of manufactured items. (read more)
This perspective is fundamentally false and based on assumptions that are decades old economic arguments. The reality of what will happen is exactly the opposite on the employment front.
The JoeBama administration is attempting to hide their economic program behind the smokescreen of a COVID economic bound; but the reality of what will happen is exactly the opposite. Employment is going to drop far below pre-COVID numbers.
The problem that people do not understand, and the federal reserve will intentionally not consider, is that Macro Economic principles no longer apply in the era of global economics and multinational trade. I have outlined this dynamic for years. What did Trump see that politicians were intent on hiding?
WHAT WAS THE PROBLEM?
Traditional economic principles have revolved around the Macro and Micro with interventionist influences driven by GDP (Gross Domestic Product, or total economic output), interest rates, inflation rates and federally controlled monetary policy designed to steer the broad economic outcomes.
Additionally, in large measure, the various data points which underline macro principles are two dimensional. As the X-Axis goes thus, the Y-Axis responds accordingly… and so it goes…. and so it has historically gone.
Traditional monetary policy centered upon a belief of cause and effect: (ex.1) If inflation grows, it can be reduced by rising interest rates. Or, (ex.2) as GDP shrinks, it too can be affected by decreases in interest rates to stimulate investment/production etc. However, against the backdrop of economic Globalism -vs- economic Americanism, CTH is noting the two dimensional economic approach is no longer a relevant model. There is another economic dimension, a third dimension. An undiscovered depth or distance between the “X” and the “Y”.
I believe it is critical to understand this new dimension in order to understand Trump’s MAGAnomic principles, and the subsequent “America-First” economy he was building.
As the distance between the X and Y increases over time, the affect detaches – slowly and almost invisibly. I believe understanding this hidden distance perspective will reconcile many of the current economic contractions. I also predict this third dimension will eventually be discovered/admitted, and will be extremely consequential in the coming decade.
To understand the basic theory, allow me to introduce a visual image to assist comprehension. Think about the two economies, Wall Street (paper or false economy) and Main Street (real or traditional economy) as two parallel roads or tracks. Think of Wall Street as one train engine and Main Street as another.
The Metaphor – Several decades ago, 1980-ish, our two economic engines started out in South Florida with the Wall Street economy on I-95 the East Coast, and the Main Street economy on I-75 the West Coast. The distance between them less than 100 miles.
As each economy heads North, over time the distance between them grows. As they cross the Florida State line Wall Street’s engine (I-95) is now 200 miles from Main Street’s engine (traveling I-75).
As we have discussed – the legislative outcomes, along with the monetary policy therein, follows the economic engine carrying the greatest political influence. Our historic result is monetary policy followed the Wall Street engine. THIS PART IS CRITICAL:
[…] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street). [This important acceptance is just common sense. The U.S. GDP is currently around $20 trillion, but the total valuation of the Wall Street stock market is much larger than our GDP. Wall Street is more valuable than Main Street. It is a simple albeit important reality to accept.]
Investments, and the bets therein, needed to expand outside of the USA. Hence, globalist investing.
However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.
As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.
When Main Street was purchasing the legislative influence the outcomes were beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.
When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global” needs. Global financial interests, investment interests, are now the primary filter through which the DC legislative outcomes are considered.
Here is an example of the resulting impact as felt by consumers:
♦ TWO ECONOMIES – Time continues to pass as each economy heads North.
Economic Globalism expands. Wall Street’s false (paper) economy becomes the far greater economy. Federal fiscal policy follows and fuels the larger economy. In turn the Wall Street benefactors pay back the politicians.
Economic Nationalism shrinks. Main Street’s real (traditional) economy shrinks. Domestic manufacturing drops. Jobs are off-shored. Main Street companies try to offset the shrinking economy with increased productivity (the fuel). Wages stagnate.
Now it’s 1990 – The Wall Street economic engine (traveling I-95) reaches Northern North Carolina. However, it’s now 500 miles away from Main Street’s engine (traveling I-75). The Appalachian range is the geographic wedge creating the natural divide (a metaphor for ‘trickle down’).
By the time the decade of 2000 arrives – Wall Street’s well fueled engine, and the accompanying DC legislative attention, influence and monetary policy, has reached Philadelphia.
However, Main Street’s engine is in Ohio (they’re now 700 miles apart) and almost out of fuel; there simply is no more productivity to squeeze.
From that moment in time, and from that geographic location, all forward travel is now only going to push the two economies further apart. I-95 now heads North East, and I-75 heads due North through Michigan. The distance between these engines is going to grow much more significantly now with each passing mile/month….
However, and this is a key reference point, if you are judging their advancing progress from a globalist vessel (filled with traditional academic economists) in the mid-Atlantic, both economies (both engines) would seem to be essentially in the same place based on their latitude.
From a two-dimensional linear perspective you cannot tell the distance between them.
It is within this distance between the two economies, which grew over time, where a new economic dimension has been created and is not getting attention. It is critical to understand the detachment.
Within this three dimensional detachment you understand why Near-Zero interest rates no longer drive an expansion of the GDP. The Main Street economic engine is just too far away to gain any substantive benefit.
Despite their domestic origin in NY/DC, traditional fiscal policies (over time) have focused exclusively on the Wall Street, Globalist economy. The Wall Street Economic engine was simply seen as the only economy that would survive. The Main Street engine was viewed by DC, and those who assemble the legislative priorities therein, as a dying engine, lacking fuel, and destined to be service driven only….
Within the new 3rd economic dimension, the distance between Wall Street and Main Street economic engines, you will find the data to reconcile years of odd economic detachment.
Here’s where it gets really interesting. Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of the economic inflation lag during the Trump administration. Which, rather remarkably I would add, was a very interesting dynamic.
Trump was in charge… Now think about these engines doing a turn about and beginning a rapid reverse. GDP could, and as we saw did, expand quickly. However, any interest rate hikes (monetary policy) intended to cool down that expansion -fearful of inflation- would take a long time to traverse the divide. That is exactly what happened.
Jerome Powell attempted to block the America First program with interest hikes; however, his efforts were futile because of the distance between the two economic engines. President Trump was focused on assisting Main Street, and Powell’s attempts at impacting Main Street growth couldn’t impact Trump’s program.
During the Trump era we actually imported deflation because China and other nations were attempting to avoid tariff cost increases; so they devalued their currency. The problem for them was that devaluation of their currency not only made their tariffed goods cheaper, it made the non tariff goods cost less. As a result we were importing deflation from around the world.
Inflation on durable goods could not be significant until those nations stopped devaluing their currency. Simultaneously, as international trade agreements were renegotiated the originating nations of those products were forced into the same type of economic detachment described above.
The global manufacturing economies first responded to increases in export costs (tariffs etc.), by devaluing their currency; then they began driving their own productivity higher as an offset, in the same manner American workers went through in the past three decades. The manufacturing enterprise and the financial sector (connected to the consumer) remained focused on the pricing.
♦ Inflation on imported durable goods sold in America, while necessary, was -as we expected- ultimately minimal during this initial period of Trump policy. Predictably, if we stuck with the program inflation would have expanded significantly as time progressed and off-shored manufacturing found less and less ways to be productive. Over time, imported durable good prices would increase – but it was going to come much later; and by that time our own industrial base would be re-established.
♦ Inflation on domestic consumable goods ‘would’ likely rise at a faster pace. However, as we saw U.S. wage rates were respond faster, naturally faster, than any monetary policy because inflation on fast-turn consumable goods became re-coupled to the ability of wage rates to afford them…. and the labor market was on fire. Wages were factually growing faster than inflation during Trump’s term in office.
The economic policy impact lag, caused by the distance between federal monetary action and the domestic Main Street economy, was -under the Trump policy- now working in our favor. That is, in favor of the middle-class. Within the aforementioned distance between “X” and “Y”, a result of three decades traveled by two divergent economic engines, that was our new economic dimension….
What JoeBama 3.0 is proposing now, and what the Federal Reserve just announced they are going to support, is a return to the prior economic model where Wall Street multinationals benefit and the U.S. middle-class is pushed into their intentionally created “service driven economy”.
Inflation on domestic consumable goods (food, fuel, energy) hurts the U.S. middle-class, it does not hurt the multinationals, the elites and Wall Street investors. It takes a long time for inflation to push up wages when the workforce is experiencing lay-offs due to downsizing, outsourcing and expanded imports of multinational products.
But it doesn’t stop there…. If we get too granular, missing the larger picture, it is difficult to understand. However, if we stay at the elevated perspective, understanding leads to awakening. We start to see how the various JoeBama policies intersect.
In generally approximated terms 2020 has delivered a serious financial blow to Main Street businesses.
The COVID-19 lockdowns and shutdowns have led to business in your local community suffering massive losses of income while simultaneously taking on debt directly from lenders or indirectly from government relief efforts. Main Street has been hit hard, some analysts estimate 40 to 50 percent of those service businesses may not recover.
Conversely, the COVID-19 lockdowns and shutdowns have created a massive income benefit for multinationals, Wall Street corporations and big tech. Amazon, Walmart and massive tech companies had their highest earnings ever recorded.
According to most maco-analysis somewhere around forty percent of Main Street economic wealth was lost or suspended in 2020 due to COVID-19. Simultaneously the multinational firms have seen increases in stock evaluations of forty percent. These two almost identical numbers are not coincidental. The billionaire class (multinationals) have gained wealth in an almost identical amount the middle-class (Main Street) lost.
These empirical results are accepted. No-one is challenging the shift of financial resources was/is directly related to regional COVID policy. The math is the math.
Where things change from simple economic math to downstream consequences is where the story is really told.
This is where we are going…
This is where we have been going ever for decades, COVID-19 has (not coincidentally) just sped up the process.
If you take out a national map and: (1) put a green pin in the areas where the lock-downs are most severe (draw a 100 mile circle); then (2) put a red pin in the areas where the riots and local anxiety was highest in summer 2020; then (3) put a white pin in the seven counties where election fraud was prevalent; then (4) put a blue pin in the areas known as “Opportunity Zones“, what you will see is a direct correlation. This is not accidental.
There are more than 8,760 designated Qualified Opportunity Zones (PDF) located in all 50 States, the District of Columbia, and five United States territories. Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged or until December 31, 2026. (link)
If you are a member of ‘THE BIG CLUB’ with a massive influx in capital due to the benefits of the COVID-19 lockdowns, limits and regulations, the Opportunity Zones are now the perfect place to expand ownership and wealth. Take advantage of the Main Street weakness, make moves with government authorization, and do so without capital gains.
The regions where real property will be purchased at a low cost will, not coincidentally, be the “opportunity zones” where investment transactions without capital gains can be made. The areas where riots took/take place will sell cheap. “Opportunity zones” allow for mass investment moves from billionaire class without paying capital gains taxes.
The mass accumulation of wealth (multinationals) at the upper tier of Big Tech and the multinational billionaire class (technocrats) during COVID is approximately +40% since it began. 40% of Main Street businesses wiped out. Not coincidentally almost 40% of wealth has been transferred from Main Street to the Wall Street mega-corps and multinationals.
“Never let a crisis go to waste”…
Only in 2020 the “crisis” was (yet again) by design. The highest level of COVID mitigation control in the Blue states is not coincidentally in the same states with the largest number of Opportunity Zone regions. As a direct result of this mass transfer of wealth to the upper tier the “opportunity” is an unprecedented level of Main Street ownership by elite interests and foreign nationals.
It gets worse… Just like the banking and real-estate crisis of ’07/’08 the government steps in to back-fill the Main Street losses to the mass U.S. population. When an individual or family receives the relief money, they still cannot support Main Street because in many areas they remained forcibly closed. Paying down debt and making purchases in the same lock-down strata only ends up putting those relief funds into the hands of the banks and multinationals who were allowed to operate.
Continued consumer spending only feeds the beast that is -by policy via purchased politicians- designed to destroy us. In essence, we are paying the Technocrats, bankers and multinational corporations to fatten their bank accounts while the U.S. government re-opens the economy with a finger on the scale to benefit the multinationals.
This is by design….
This has always been the design…
CTH has been warning about this for well over a decade and we exhibited the (un)natural conclusion with this graphic:
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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
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