Argentina Raises Interest Rate to 69.5%


Armstrong Economics Blog/Socialist Re-Posted Aug 15, 2022 by Martin Armstrong

Argentina is out of options. I reported on the ongoing widespread protests occurring across the country. The majority of the nation is unemployed, and the currency is basically worthless. The people can no longer rely on the socialistic promises as the government is unable to fund its programs. Basic necessities are no longer available, and the people are suffering.

After inflation reached 60%, the nation decided to stop printing money entirely. The central bank just voted to raise the benchmark rate by 950 bps to 69.5%. Inflation now sits at 71% after prices rose 7.4% in July.

Estimates state that inflation could reach 90% in Argentina by the end of the year. The government has run the economy into the ground, 6 feet under, and it will need a complete overhaul for the people to begin living comfortably again.

The IRS Targets the Poorest Americans


Armstrong Economics Blog/The Hunt for Taxes Re-Posted Aug 15, 2022 by Martin Armstrong

The Internal Revenue Service (IRS) claims that they will not target lower and middle-class Americans under their staff expansion. This is a lie a they already target the poorest households at five times the rate of other income brackets.

Trac IRS examined the audit figures from FY 2021. The IRS audited 659,003 returns last year out of the 160 million filed. So out of every 1,000 filers, four were targeted for audits. This is already an increase from 2020, when three out of every 1,000 filers were investigated. Prior to 2020, audit rates had been declining.

The IRS uses “correspondence audits” to request additional documentation to prove that the filings are accurate. These correspondence audits compiled 85% of all audits conducted last year, marking a 5% increase from the previous two years. Some Americans live on such a small income that they file for an anti-poverty tax credit. Those earning a mere $25,000 annually or less accounted for 54% of all correspondence audits.

The idea that this expanded branch of government will target the dreaded rich is a lie. Around nine million taxpayers in the highest bracket earned between $200,000 to $1,000,000 but were only targeted at one-third of the rate compared to the poorest in the country. In fact, less than 40,000 returns among the top-tier tax bracket were targeted. Only 13,725 people earning over $1 million were targeted. The IRS is basically asking the most desperate among us to prove that they are poor.

With new resources and funding, the IRS will target EVERYONE.

Romania Gifts Moldova One Million Potassium Iodide Pills


Armstrong Economics Blog/War Re-Posted Aug 15, 2022 by Martin Armstrong

The world is preparing for the worst – a nuclear disaster. Romania gifted Moldova one million pills that protect against radioactivity due to fighting near the Zaporizhzhia power plant in Ukraine. Russia has control of the plan but claims it will not begin a nuclear war. Still, the Commission for Exceptional Situations of Moldova is distributing potassium iodide pills to citizens as a precaution.

The pill is supposed to prevent the thyroid from absorbing radioactive iodine and must be taken within 24 hours of exposure.

Romania has personally distributed 30 million potassium iodide pills to its citizens. Romania’s Minister of Health, Alexandru Rafila, is urging everyone under the age of 40 to pick up their tablets. “There is more demand, less demand, I don’t know to tell you. But now, perhaps as things get tense in Ukraine, demand is likely to increase. But family doctors must issue a prescription to those who need to receive potassium iodide.” He added.

Romanian doctors expressed disappointment as citizens immediately panicked and rushed to obtain these pills. The fear of a potential nuclear disaster is now embedded in the minds of many Eastern Europeans.

Sunday Talks, Devin Nunes and Kash Patel Discuss the FBI Raid on Trump and DOJ Targeting 4.0


Posted originally on the conservative tree house on August 14, 2022 | sundance 

It’s likely the most important interview this Sunday, ergo Fox News -in an effort to support the overall agenda- doesn’t put it on any of their replay media. The scheme against our republic is so tentacled there are no corporate media out of alignment.  The anti-Trump/anti-MAGA effort doesn’t just stem from ideological communists and leftists, the republican apparatus is 100% part of the enterprise.  Don’t fool yourself, we have yet to see the full scope of the enemy.

If you think masks dropped in the past 6 years, we are only about 60% of the way there…. Many more masks will be dropping and some of them are likely to stun people. Decades of entrenched Machiavellian club manipulation, and years of coat tailing the base by left-wing republicans, has yet to surface.  Remember, two-thirds of the iceberg are hidden under water. [Direct Rumble Link Here]

In this interview Devin Nunes lays out the history of DOJ and FBI corruption under Obama, the originator of the modern Fourth Branch of Government.  Nunes accurately points out the continuum of the DOJ/FBI corruption, but missed one element, the formation of the DOJ-National Security Division. That’s where it all starts.

From Eric Holder and Robert Mueller’s, Fast n Furious gun running operation (08/’09); to the DOJ use of the IRS for targeting (Lois Lerner, Eric Holder ’10, ’11); to the 19 days it took the FBI to reach Benghazi (’12); to the DOJ/FBI using NSA databases for surveillance (2012-2016); to the Crossfire Hurricane operation (Yates/Lynch ’16); to Robert Mueller resurfacing (’17, ’18, ’19); to the DOJ targeting Trump now (’20, ’21, ’22); it has all been one long continuum since the DOJ-NSD was formed.  WATCH:

Kash Patel then overlays the people who use the weaponized DOJ-NSD to create the “ongoing investigation” document blocks.  Including, John Carlin, Mary McCord, Lisa Monaco (DOJ-NSD); as well as Jake Sullivan and Susan Rice (White House).  Again, same names in Obama administration, exit then return with Biden administration; it’s the same continuum.

This was the reason for writing the four-part series outlining the network:

♦Part One outlines the background of the modern Deep State, and the formation of the DOJ-NSD {Go Deep}.

♦In Part Two you see the specifics of how President Trump was targeted by political operatives using the DOJ-NSD {Go Deep}. 

♦In Part Three you see how and why President Trump was blocked from releasing documents against the DOJ-NSD {Go Deep}.   

♦And in Part Four, we outlined exactly what those specifics documents are that likely existed in Mar-a-Lago. {Go Deep}

Everything I research, write and share is free for the taking.

Download it into a pdf form, modify the internal citations as footnotes, proofread, add, subtract, modify it, change the language, simplify it, do whatever you want to make it your own in whatever format suits your needs. No attribution or citation is needed.

This is a battle to save our nation from a corrupt enterprise. I put no parameters on any tool or intellectual weapon you may find of benefit. That just isn’t me.  Those who have been around a while know where I stand…. which is right next to anyone who is in the fight.  Getting the message out is the urgent and important part; how it arrives, is of no issue for me.

We are not on a last hill; we are far beyond that.  We are on the precipice.

It would be against every intent of the Treehouse for me to put limits on any information that might help.

Love to all and abundant appreciation for most,

Sundance

Neil Oliver, Think the Unthinkable and Accept That is the Better Reference Point


Posted originally on the conservative tree house on August 13, 2022 | Sundance

Neil Oliver returns from a vacation to deliver one of his best contemplative monologues to date.  Mr. Oliver rightly says that if you reset your historic reference points, and you begin to recognize that thinking the unthinkable is actually the best reference point for your current state, it is like a key that unlocks the answers.

We are the battered spouses in an abusive relationship with government. Nothing we can do is going to appease the abuser, it is the inherent state of their disposition. WATCH:

[Transcript] – It is hard to think the unthinkable – but there comes a time when there’s nothing else for it. People raised to trust the powers that be – who have assumed, like I once did, that the State, regardless of its political flavour at any given moment, is essentially benevolent and well-meaning – will naturally try and keep that assumption of benevolence in mind when trying to make sense of what is going on around them.

People like us, you and me, raised in the understanding that we are free, that we have inalienable rights, and that the institutions of this country have our best interests at heart, will tend to tie ourselves in knots rather than contemplate the idea those authorities might actually be working against us now. I took that thought of benevolent, well-meaning authority for granted for most of my life, God help me. Not to put too fine a point on it, I was as gullible as the next chump.

A couple of years ago, however, I began to think the unthinkable and with every passing day it becomes more and more obvious to me that we are no longer being treated as individuals entitled to try and make the most of our lives – but as a barn full of battery hens, just another product to be bought and sold – sold down the river.

Let me put it another way: if you have been driving yourself almost demented in an effort to think the best of those in charge – those in senior positions in government, those in charge of the great institutions of State, those running the big corporations – but finding it increasingly impossible to do so … then the solution to the problem might be to turn your point of view through 180 degrees and accept, however unwillingly, that we are … how best to put this … being taken for a ride.

When you find a stranger’s hand on your wallet, in the inside pocket of your jacket … rather than trying to persuade yourself he’s only making sure it doesn’t fall out … it might be more straightforward to draw the conclusion you’re in the process of being robbed.

Once the scales fall from a person’s eyes, the resultant clarity of sight is briefly overwhelming. Or it is like being handed a skeleton key that opens every locked door, or access to a Rosetta Stone that translates every word into a language instantly understood.

Take the energy crisis: If you’ve felt the blood drain from your face at the prospect of bills rising from hundreds to several thousands of pounds while reading about energy companies doubling their profits overnight while being commanded to subsidise so-called renewables that are anything but Green while listening to this politician or that renew their vows to the ruinous fantasies of Net Zero and Agenda 2030 while knowing that the electricity for electric cars comes, in the main and most reliably, from fossil fuels if you can’t make sense of it all and just know that it adds up to a future in which you might have to choose between eating and heating then treat yourself to the gift of understanding that the powers that be fully intend that we should have less heat and less fuel and that in the planned future only the rich will have cars anyway. The plan is not to fix it.

The plan is to break it, and leave it broken. If you struggle to think the best of the world’s richest – vacuous, self-obsessed A-list celebrities among them – endlessly circling the planet on private jets and super yachts, so as to attend get-togethers where they might pontificate to us lowly proles about how we must give up our cars and occasional holiday flights – even meat on the dinner table … if you wonder how they have the unmitigated gall … then isn’t it easier simply to accept that their honestly declared and advertised intention is that their luxurious and pampered lives will continue as before while we are left hungry, cold and mostly unwashed in our unheated homes.

Here’s the thing: if any leader or celeb honestly meant a word of their sermons about CO2 and the rest, then they would obviously lead by example. They would be first of all of us willingly to give up international travel altogether … they would downsize to modest homes warmed by heat pumps. They would eschew all energy but that from the sun and the wind. They would eat, with relish, bugs and plants. They would resort to walking, bicycles and public transport.

If Net Zero and the rest was about the good of the planet – and not about clearing the skies and the beaches of scum like us – don’t you think those sainted politicians and A-listers would be lighting the way for us by their own example? If the way of life they preach to us was worth living, wouldn’t they be living it already? Perhaps you heard Bill Gates say private jets are his guilty pleasure.

And how about food – and more particularly the predicted shortage of it: the suits and CEOs blame it all on Vladimir Putin. But if the countries of the world are truly running out of food, why is our government offering farmers hundreds of thousands of pounds to get out of the industry and sell their land to transnational corporations for use, or disuse unknown? Why aren’t we, as a society, doing what our parents and grandparents did during WWII and digging for victory? Why is the government intent on turning a third of our fertile soil over to re-wilding schemes that make life better only for the beavers? Why aren’t we looking across the North Sea towards the Netherlands where a WEF-infected administration is bullying farmers off their land altogether, forcing them to cull half the national herd.

Those Dutch farmers are among the most productive and knowledgeable in the world, holding in their heads and hands the answers to all manner of questions about how best to produce food, and yet their government is so intent on scaring them out of the business that a teenage boy in a tractor, taking part in a protest to defend ancient rights and traditions, was fired on by police.

Why do you think it matters so much, to the government of the second most productive population of farmers in the world, to gut and fillet that industry? Why? Why have similar protests, in countries all across Europe and the wider world, been largely ignored by the mainstream media – a media that would have crawled on its hands and knees over broken glass just to report on a BLM protester opening a bag of non-binary crisps. Why the silence on the attack on farming?

And while we’re on the subject of farmland ownership, why is computer salesman Bill Gates buying so much farmland in the US – more than a quarter of a million acres in 19 states at the last count, while simultaneously promoting the production and sale of fake meat? And why have so many small planes crashed into massive food processing plants in the US, sparking fires and thereby hobbling the production and distribution of yet more of the very stuff of life? Why is this happening to farmers and farming … all across the hitherto developed world …?

Isn’t the simple obvious answer … the answer that makes most sense and that is staring us in our trusting faces … that power for the power-hungry has always rested most effectively upon control of food and its supply? Why are the powers that be attributing this to a cost-of-living crisis when everyone with two brain cells to rub together can see it’s a cost of lockdown crisis – the inevitable consequence of shutting down the whole country – indeed the whole world – for the best part of two years. Soaring inflation, rising interest rates, disrupted supply chains.

Might they be calling it a cost-of-living crisis as part of their bare-faced attempt to distract us from the fact that while ordinary individuals face a life and death struggle in the coming months, the corporations have celebrated their share of the greatest transfer of wealth in history? Doesn’t that seem more likely? However unthinkable, might it not be more compelling to ask why our government, and governments around the world, have effectively stood by and held the coats of huge corporations while those money magnets pulled almost all of the world’s wealth into their already creaking coffers?

Are our governments more interested in enabling, in aiding and abetting the rich, than in lifting so much as a finger to protect our livelihoods, our ways of life? I’m only asking. What about the money in our pockets? Why is it getting harder and harder to use good old cash, notes and coins? Why are we being nudged further and further away from spending-power we can see and hold, and towards a digital alternative that exists only on the hard drives of the banks that run the world? Why is that do you think?

Rather than dismiss as yet another conspiracy theory the idea of cash being ultimately replaced with transactions based on the exchange of what amount to glorified food stamps that will only be accepted if our social credit score demonstrates that we’ve been obedient girls or boys … how about taking the leap and focussing on the blatantly obvious … that if we are not free to buy whatever and whenever we please, free of the surveillance and snooping of governments and the banks that run them, then we have absolutely no freedom at all.

And while we’re on the subject of money and banks, why not pause to notice something else that is glaringly obvious – which is to say that the currencies of the West are teetering on the abyss, and that one bank after another is revealed, to those who are bothering to watch, as being as close to bankruptcy as its possible to be without actually falling over the edge.

Then there’s the so-called vaccines for Covid – I deliberately say “so-called” because by now it should be clear to all but the wilfully blind that those injections do not work as advertised. You can still contract the virus, still transmit the virus, still get sick and still die. Denmark has dropped their use on under-18s. All across the world, every day, more evidence emerges – however grudgingly, however much the various complicit authorities and Big-Pharma companies might hate to admit it – of countless deaths and injuries caused by those medical procedures.

And yet here in Britain and just about everywhere else, governments continue to try and get those needles into as many arms as possible, even the arms of the smallest and youngest. The ripe stink of corruption is everywhere. I trusted authority for most of my life.

Now I ask myself on a daily basis how I ignored the stench for so long. Across the Atlantic, the Biden Whitehouse sent the FBI to raid the home of former president Donald Trump. Meanwhile Joe Biden and his son Hunter – he of the laptop full of the most appalling and incriminating content – fly together on Airforce 1. No raids planned on the Obamas, nor on the Clintons. Speaker of the House Nancy Pelosi flew to Taiwan and onwards to China. Her son Paul, an investor in a Chinese tech firm and with seats on the board of companies dealing in lithium, was along for the ride, into that part of the world where three quarters of the world’s lithium batteries are made. Taiwan leads in that technology.

It is hard to think the unthinkable. It’s hard to think that all of it, all the misery, all the suffering of the past and to come might just be about money, greed and power. It is hard to tell yourself you’ve been taken for a fool and taken for a ride. It’s hard, but the view from the other side is worth the effort and the pain. Open your eyes and see. (link)

Argentina to Stop Printing Money


Armstrong Economics Blog/Hyperinflation Re-Posted Aug 10, 2022 by Martin Armstrong

Argentina’s government has left its beautiful country in financial ruin. July’s inflation report surpassed 60% with no signs of slowing. The problem with socialism is that they eventually run out of other people’s money. The government was spending $6 million daily on social programs, but the poverty rate continues to rise. Around 57% of the working population cannot find work, and there have been mass strikes since their money will not fund basic goods.

Economy Minister Sergio Massa, the third person to fill this position in the past month, has a new plan – stop printing money. Since they had no way to pay off their debt, the government simply continued to print more and devalued its own currency in the process. “Magic doesn’t exist,” Massa bluntly told reporters in Buenos Aires. “We have to confront inflation with determination.” Massa believes the country will still commit to its deficit goals this year to meet its agreement with the International Monetary Fund after receiving a $44 billion bailout.

Socialism simply does not work.

Their currency is useless, and the people have no incentive to work. The underground barter economy is alive and well, and only a full transformation of government policy could save this nation.

North Korea Asks to Join the War


Armstrong Economics Blog/War Re-Posted Aug 10, 2022 by Martin Armstrong

The proxy war with Russia has strengthened the West’s enemies. North Korea is offering to send 100,000 soldiers – all volunteers – to fight alongside Russia. Despite being a small nation, North Korea boasts the fourth largest military in the world, with over 1.3 million active troops and 600,000 reservists.

North Korea is attempting to align closely with Russia and has even offered to help repair the Donbas region after the war. A spokesperson for the hermit kingdom announced full support for Russia in April. “We are sending our full support and showing solidarity to the justified struggle of the Russian people to protect the autonomy and security of the country and to defend national interests,” they stated.

In May, Russia blocked attempts by the UN and US to pass further sanctions on North Korea. In July, North Korea stated that they officially recognized the People’s Republic of Donetsk and the People’s Republic of Luhansk as Russian territories. Russia has responded favorably to North Korea’s vocal support.

“Highly qualified, hardworking, and ready to work in the most difficult conditions, [North] Korean builders will be an asset in the serious task of restoring social, infrastructure and industrial facilities [in the Donbas] destroyed by the retreating Ukrainian forces,” Russia’s ambassador to North Korea, Alexander Matsegora, said.

North Korea is a nuclear power with a military state. The tyrannical government indoctrinates children from a young age to hate the West. Kim Jong-Un can send cheap laborers to Russia at a moment’s notice, and he is certainly desperate for allies. This may entice China to step up its efforts as they have a monopoly on trade with their neighboring country and are increasingly growing frustrated with America after Pelosi’s visit to Taiwan. As the cycle of war turns up, new players are joining the fight.

Farage, After Trump Raid People in U.K. Now Understand There Really is a Deep State


Posted originally on the conservative tree house on August 9, 2022 | Sundance

Nigel Farage gives a great interview on Steve Bannon’s War Room with his opinion of the FBI raid on the home of President Donald Trump.  Within the interview Mr. Farage outlines the shock that also shook the people in the U.K who see, many for the first time, that U.S. justice institutions really are politicalized.

One of the key takeaways from Europe is the realization that a Deep State really does exist in the United States of America. {Direct Rumble LinkWATCH:

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Second Quarter Productivity Drops Again, Companies Paying Workers More to Produce Less


Posted originally on the conservative tree house on August 9, 2022 | Sundance 

The previous first quarter productivity drop of 7.4% was the largest quarterly drop in 74 years.  Today the Bureau of Labor Statistics (BLS) reports the second quarter productivity dropped another 4.6% [Data Here].

For July, companies are paying 5.7% higher wages and getting a 4.6% drop in output, resulting in a total unit labor cost increase of 10.8%.  That increase in final output cost will either result in higher prices or lower profits.

With weak consumer purchasing (low demand) already creating an inventory surplus, hence lower outputs, lower profit leads to cutbacks.  The largest company expenses are generally labor and energy costs. The more variable and controllable of those two expenses is labor.  You know what comes next.

(WSJ) – […] Rising productivity is the key to improving living standards; it allows companies to raise wages without raising prices and fueling inflation. Instead, businesses appear to be paying workers more to produce less. The higher unit labor costs suggest companies will either endure lower profits or pass on higher costs to consumers.

“The trend in productivity growth has worsened compared to prior to the pandemic, and the surge in unit labor costs makes the Fed’s challenge of getting inflation back down to its 2% target all the more challenging,” Wells Fargo economist Sarah House said in a research note.

The central bank has increased rates four times this year from near zero in March in an effort to raise borrowing costs, slow economic growth and bring inflation down.

The consecutive negative productivity readings are a reversal from earlier in the pandemic, when the economy was expanding rapidly and businesses appeared to be adopting new technology to cope with worker shortages and limits to face-to-face contact. (read more)

Meanwhile, “U.S. manufacturing output in June was down by 0.4% compared with March though it was still up by 3.6% compared with the same month a year earlier, estimates prepared by the Federal Reserve Board found. Three-month output growth was the weakest since early 2021, and confirms slackening momentum evident in other data on output, orders and jobs.” (Reuters)

This month’s inflation report (reflecting changes in July) will show a large decline in overall inflation. This will provide the White House with a false narrative of confidence that inflation has peaked.  However, food inflation (farm prices not yet realized) will combine with wage inflation (as noted above) sometime around October, and then we enter another round of rising prices.

The prices for durable goods have likely peaked.  If you are in the market for an expense item (appliance, furniture, etc) look for significant incentives to trigger in Sept/October; right around the same time when the layoffs start.  So, sit tight for a few more weeks.

However, the prices for highly consumable products will present a false plateau (Aug/Sept) until they go bananas again just before the Thanksgiving holiday season.

Prepare and time your affairs accordingly.

Civil Unrest in Panama Continues


Armstrong Economics Blog/Central America Re-Posted Aug 8, 2022 by Martin Armstrong

The people of Panama have been protesting the obscene cost of living for weeks. President Laurentino Cortizo has promised to lower the cost of basic necessities such as food and energy, but the people are not satisfied. Teachers began protesting in July and went on an initial three-day strike. This act of defiance inspired other groups who also took to the streets to call for price reductions.

Inflation in Panama sits at 4.2% as of May, while the unemployment rate hovered around 10%. Fuel costs have soared nearly 50% since January of this year. The issue here is that despite the country’s economy growing, the benefits have not been passed on to the people in any way. Many highly-skilled professionals, such as doctors, left the country long ago for countries where they’re paid competitively and access to medical care has become increasingly difficult.

Protestors blocked the Pan-American highway, which is the main route for most of Panama’s food. Even the Catholic Church stepped in during June to mediate the battle between the people and government. The first round of discussions mediated by the Catholic Church resulted in the government freezing the cost of 72 products. Additionally, the government will now allocate 6% of GDP to education by 2024. The Inter-American Highway, connecting Panama to the rest of Central America, was cleared but the supply constraints and resulted in significant losses.

Panama’s economy grew 17.8% in 2021, and 13.6% in Q1 of 2022. There is no reason for Panamanians’ quality of life to decrease when their economy is in a surplus. The protests will continue as the people have realized that their corrupt government does in fact work for them