Posted originally on the conservative tree house on May 7, 2021 | Sundance | 134 Comments
Economic forecasters had predicted one million job gains in April. The actual results are “stunningly” and “unexpectedly” far below the expectations. The Bureau of Labor Statistics [SEE HERE] reveals only 266,000 jobs gained in April and downward revisions of March by -146,000. There are almost 7.4 million jobs available; however, despite the available jobs, no-one is going back to work.
Yes, JoeBama’s “free government money” has created the socialist utopia.
The politically correct economic analysts are shocked that minorities (blacks and latinos) are not going back to work; while ignoring the disincentive that government handouts have created in the JoeBama economy. The entire dynamic is ridiculous when you consider we should be entering a phase of the jobs economy where vaccination and COVID mitigation should be leading to massive reopenings of the economy overall.
Inside the numbers, the economic sectors showing the worst jobs recovery are directly related to the blue state shut-downs. Worse yet, there is an underlying scenario showing the economy is not growing despite the ability of businesses to re-open overall. That spells even more trouble.
(CNBC) – “Today’s report was an enormous surprise and shows the labor market hit a hidden pothole in April,” Glassdoor senior economist Daniel Zhao tells CNBC Make It. “Clearly, the labor market has decelerated quite a bit.”
The 6.1% unemployment rate and 9.8 million people unemployed remained steady in April compared with the months prior. (more)
There is no level of spin that can change the reality of this situation. JoeBama’s economic policies are exactly the wrong thing to be doing. Everything, and I do mean every single policy objective, delivered by this administration is AMERICA LAST!
Hiring was a huge letdown in April, with nonfarm payrolls increasing by a much less than expected 266,000 and the unemployment rate rose to 6.1%. Dow Jones estimates had been for 1 million new jobs and an unemployment rate of 5.8%. CNBC’s Jim Cramer discusses what he thinks led to the surprising report.
Posted originally on the conservative tree house May 7, 2021 | Sundance | 157 Comments
This obtuse explanation from Treasury Secretary Janet Yellen about the April jobs report is one for the record books. According to Yellen, the government handing people more free money than they would achieve with a working job is not a disincentive for employment.
To prove her case she cites the hospitality industry hiring people in April. However, what Yellen doesn’t figure into her bizarro logic is that all sectors in all states are not created equal. Yes, the statistics of “sector analysis” apply across the entire nation; however, the underlying economic activity is not equally distributed.
Blue states are more economically closed than red states. The job gains are in the states where the economic activity is strongest and the incentives for workers are the biggest. The lack of people working is disproportionately happening in the blue states where dependency models are strongest. WATCH this nonsense:
These bureaucrats don’t have a lick of common sense. According to Secretary Yellen’s logic, there are times when water is not lacking dryness.
Armstrong Economics Blog/BRITAIN Re-Posted May 7, 2021 by Martin Armstrong
The French and British are at it again, as always. The British Royal Navy and French police boats patrolled offshore from the Isle of Jersey’s port of Saint Helier. French fishermen are angry about losing access to waters off the Jersey coast, thanks to Brexit, and have some 70 ships gathered for a protest calling for a blockade of Saint Helier.
Two Royal Navy ships, equipped with machine guns and helicopter landing pads, were sent to track the French demonstration. Macron sent gunships armed with a cannon. So here we have the old traditional hatred between the French and English that extends back to the 13th century. There was an English invasion of France in 1230, which was a military campaign undertaken by Henry III of England in an attempt to reclaim the English throne’s rights and inheritance to the territories of France held prior to 1224.
The House of Plantagenet was a royal house that originated from the lands of Anjou in France. Plantagenets’ two cadet branches, the houses of Lancaster and York, held the English throne from 1154, with the accession of Henry II at the end of the chaos until 1485, when Richard III died in battle. It was the Plantagenets that transformed England. The Plantagenet kings were forced to negotiate compromises, which led to the establishment of the Magna Carta. During the 15th century, the Plantagenets were defeated in the Hundred Years’ War which led to political, economic, and social problems which included English nobles raising private armies.
Eventually, a rivalry between the House of Plantagenet’s two cadet branches of York and Lancaster led to the famous Wars of the Roses, which lasted for decades. English succession culminated in the Battle of Bosworth Field in 1485 when the reign of the Plantagenets and the English Middle Ages both met their end with the death of King Richard III.
So the rivalry between France and England has remained in the blood. During the negotiations over Brexit, the French always presented the greatest opposition
Armstrong Economics Blog/China Re-Posted May 6, 2021 by Martin Armstrong
A number of people often send nasty emails because they do not like the forecast that China will become the next financial capital of the world. The forecasts we put out are NOT based upon my OPINION. I simply report what the computer projects. This Great Reset is playing right into our forecast, for they are deliberately destroying the economy so they can “BUILD BACK BETTER,” as they like to say.
The problem is that they are ignorant of world history. The victor in war is NOT simply the person who has the largest army. There must be some advantage and that boils down to economics. The one with the strongest economy is the victor because they have the capacity to fund the war.
This is why barbarians could never invade Rome until the Roman Empire’s monetary system began to collapse following the capital of Emperor VBalerian I in 260AD. Even Alexander the Great was able to take the Persians because they lost their greatest and were unable to defend against a well-supported army. The South lost against the North in the American Civil War because the North was industrial whereas the South was primarily agrarian.
Deliberately destroying our economy so they can “Build Back Better” while creating food shortages and trying to end raising cattle because of CO2, has set the West on the course to economic decline. This has made the West vulnerable just as was the case with the Roman Empire.
Now everyone is starting to notice and even CNBC says that China will surpass the United States by 2028. Granted, the analytical field seems to notice trends of this nature only when it smacks them in their face. We published the report “China on the Rise” back in 2018.
Now New York City, thanks to Socialists who think they can keep taxing the rich without end, lost its title as the home of more billionaires than anywhere else. Beijing has now taken that title. Some people think my reliance on history is foolish. History repeats because human nature is always the same.
New York is dying. It is, in trading terms, a major SHORT! NYC is following the same path as Mainz. It was the city of Mainz where the Gutenberg printing press was invented. This created an economic boom and everyone wanted to be in Mainz. The politicians saw the boom and presumed the potential tax revenue was linear and would be endless – judging tomorrow by today’s trend. They began to borrow against what they anticipated would be there forever. As they needed the interest to pay for borrowing and became addicted to debt, they raised taxes.
The taxes kept rising so they killed the economic boom and people began to leave. Mainz followed the typical path as we are doing today. They were no longer paying off debt. They entered the Ponzi scheme – issued new debt to pay off the old in a revolving bond auction. Taxes kept rising and people migrated. The printing press was no longer unique to Mainz. The rich left town, taking their capital and entrepreneurship with them. When Mainz lost the confidence of the bond buyers and could no longer sell new debt to pay for the old, the collapse unfolded. Mainz, like Detroit, defaulted. The creditors sacked the city and it was burned to the ground.
The same precise pattern unfolds every time – WITHOUT EXCEPTION. Why? Human nature never changes. Create career politicians and they will always seek to expand government for that is their power base. All that is left is a nice monument commemorating Guttenberg. Of course, they never tell the full story of Mainz.
New York City is making all the same mistakes like clockwork. They think people can be exploited without end. There comes a point where it no longer is beneficial to work as a slave. Why invest in anything if those in power simply want to take whatever you invent.
I pray for 2032 to end corruption and drive a stake through the heart of republican forms of government. We need a new path and anyone who calls for exploiting one class to benefit another should be subject to life imprisonment where they can enjoy carefree and tax-free living in a world of equality.
Armstrong Economics Blog/Agriculture Re-Posted May 5, 2021 by Martin Armstrong
The orchestrated COVID pandemic to change the economy for the BUILD BACK BETTER Great Reset has set in motion food shortages that are now emerging. Farmers have had to plow their crops under, and one had to kill over 30,000 chickens because they simply could not get them to market. Sales of produced collapsed as much as 75% in 2020 compared to 2019 in some areas. Even in Europe, the cold weather has destroyed crops. As I have said, these morons look at the world only in a single dimension. They had no idea that locking people down to lower CO2 meant that they were also cutting off the supply chain in technology to food.
There is a shortage now of chickens, and don’t worry, it will move to beef as well. Add their scheme for a cyber attack, and the future looks really crazy because nobody will lock these people up, no less dare to investigate them. So be warned. This will get far worse post-2024. We should all send a thank you note to Klaus Schwab and Bill Gates for starters.
Armstrong Economics Blog/Press Re-Posted May 5, 2021 by Martin Armstrong
COMMENT: I wrote to the ________ news and pointed out that you had a computer model that beat all the models that Gates-funded to use to create these lockdowns. They never responded.
ANSWER: Oh it is worse than that. One of the top five newspapers in the world wanted to write a story about Socrates and its forecasts with respect to COVID. We spoke, and then two weeks later, the powers from above said NO!
It is not a question of them not being aware. They know precisely about Socrates, yet the powers that be give directions not to cover Socrates, for it goes against the narrative. Perhaps if enough people wrote to Fox or the Hill, they might report something. But they too are afraid of stepping into this mess, for they might drown in a swamp filled with quicksand.
Armstrong Economics Blog/Agriculture Re-Posted May 5, 2021 by Martin Armstrong
QUESTION: Mr. Armstrong, You say that wheat fell during the Great Depression during the Dust Bowl when supply would have declined. This makes no sense. Would you address that question?
ANSWER: Your problem is typical in analysis. It appears that 99% of the people always try to reduce some event to a single cause and effect. Everything is connected like a line of dominoes. You are not just pushing over a single one. The action has a ripple effect that moves through the entire world economy and is not even restricted to a single nation.
I do not make stuff up to try to prove a point. I have been curious to discover how things really work. When I say we have the largest database in the world, I am not joking. Just as I have been a collector of various things, that includes data. It is easy to find a yearly chart of wheat, but not daily or weekly during that period. Here is how wheat responded during the Great Depression on a weekly basis. Note that it peaked about 4 weeks before the stock market. Then you see a huge gap down in 1931.
This was caused by the wholesale defaults of just about every nation. Some went into a moratorium and suspended payments on their debt like Britain. But most outright defaulted and you can buy their bonds usually on eBay.
Here is the impact of the 1931 Sovereign Debt Crisis. The dollar soared on our index from roughly the 112 level to nearly 160. That was high which exceeded even World War I levels. That illustrates just how high the dollar rallied. Because wheat was priced in dollars, it fell in terms of dollars while rising in terms of other currencies because of their defaults.
The Federal Reserve raised rates in 1931 during the Depression because they feared that the dollar would collapse because confidence in government globally collapsed.
Now, look at the unemployment. It soared as well. Because people lost their jobs, demand declined with supply. So you see, this is a far more complex issue than meets the eye. It is also why I say governments should NEVER be allowed to manipulate the economy. They always focus on a single cause and effect and never look at the whole.
Consequently, while supply contracts, your assumption that price should rise is predicated upon demand remaining the same or rising. Therein lies your answer. That is simply a false assumption.
Posted originally on the conservative tree house April 30, 2021 | Sundance | 116 Comments
The federal reserve has announced they will support the economic agenda of the Biden administration by allowing rapid inflation. The FED is 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.
There is a natural disconnect. (more)
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:
Posted originally on the conservative tree house April 25, 2021 | Sundance | 137 Comments
Senator Rand Paul appears on Maria Bartiromo to discuss the ongoing ramification from current leftist policy as being produced on Capitol Hill. The interview begins with Senator Paul discussing the leftist definitions of ‘infrastructure’ and how left-wing groups are beneficiaries of trillions of taxpayer funds.
On the economic ramifications Senator Paul notes the impact of massive capital gains increases and how increasing corporate income taxes only provides incentives for national companies to establish themselves overseas to avoid tax liability. The multinational corps, those already positioned overseas, do not have the same risk exposure to corporate tax increases, thus they do not oppose legislation that hurts national business and small U.S. corporations.
Overall the points made by Rand Paul are all valid; however, those in DC still hold back from pointing out the intent of the JoeBama group – that’s frustrating. This game where incompetence is claimed under the guise of ‘benefit of doubt’ is a severe weakness within the GOP. The refusal to aggressively confront Obama 3.0 is beyond frustrating.
Anyone who believes Democrats own exclusive opposition to the America First principles are completely ignoring the deliberate construct of the republican party. There are just as many -if not more- natural enemies within the Republican apparatus as there are within the Democrat group. “America-First” is antithetical to the UniParty.
The frustration amid the MAGA community is valid. Everything about it is righteous. The mechanisms that run the system in DC must be deconstructed if we are to win the battles and the war against this massive enemy. We have the largest coalition of American patriots on our side; however, there are only a handful of representatives willing to confront with the needed ferocity.
Multinationals want control; some call that corporatism…. but the names are moot. Multinationals want control, and capitalism does not allow them control; that is why multinationals do not want capitalism. Multinationals use lobbyists to generate regulations that stall competition.
Multinationals do not want competition; they are, by nature of their interest, anti-capitalists.
This misunderstanding is everywhere.
Most people think when they vote for a federal politician -a House or Senate representative- they are voting for a person who will go to Washington DC and write or enact legislation. This is the old-fashioned “schoolhouse rock” perspective based on decades past.
There is not a single person in congress writing legislation or laws. In modern politics not a single member of the House of Representatives or Senator writes a law, or puts pen to paper to write out a legislative construct. This simply doesn’t happen.
Over the past several decades a system of constructing legislation has taken over Washington DC that more resembles a business operation than a legislative body.
The for-profit groups (mostly multinational corporations) have a purpose in Washington DC to shape policy, legislation and laws favorable to their interests. They have fully staffed offices just like any business would – only their ‘business‘ is getting legislation for their unique interests.
These groups are filled with highly-paid lawyers who represent the interests of the entity and actually write laws and legislation briefs.
In the modern era this is actually the origination of the laws that we eventually see passed by congress. Within the walls of these buildings within Washington DC is where the ‘sausage’ is actually made. Again, no elected official is usually part of this law origination process.
Almost all legislation created is not ‘high profile’, they are obscure changes to current laws, regulations or policies that no-one pays attention to. The passage of the general bills within legislation is not covered in media. Ninety-nine percent of legislative activity happens without anyone outside the system even paying any attention to it.
Once the corporation (multinational) or representative organizational entity has written the law they want to see passed – they hand it off to the lobbyists.
The lobbyists are people who have deep contacts within the political bodies of the legislative branch, usually former House/Senate staff or former House/Senate politicians themselves.
The lobbyist takes the written brief, the legislative construct, and it’s their job to go to congress and sell it. “Selling it” means finding politicians who will accept the brief, sponsor their bill and eventually get it to a vote and passage.
Corporations (special interest group) write the legislation. Lobbyists take the law and go find politician(s) to support it. Politicians get support from their peers using tenure and status etc. Eventually, if things go according to norm, the legislation gets a vote.
Within every step of the process there are expense account lunches, dinners, trips, venue tickets and a host of other customary financial way-points to generate/leverage a successful outcome. The amount of money spent is proportional to the benefit derived from the outcome.
The important part to remember is that the origination of the entire process is EXTERNAL to congress.
Congress does not write laws or legislation, special interest groups do. Lobbyists are paid, some very well paid, to get politicians to go along with the need of the legislative group. When a House or Senate member becomes educated on the intent of the legislation, they have attended the sales pitch; and when they find out the likelihood of support for that legislation; they can then position their own (or their families) financial interests to benefit from the consequence of passage. It is a process similar to insider trading on Wall Street, except the trading is based on knowing who will benefit from a legislative passage.
When we understand the business of DC, we understand the difference between legislation with a traditional purpose and modern legislation with a financial and political agenda.
If you know a better solution to this mess than repeal of the 17th amendment, I am all ears.
If, as the constitution outlined, the Senate were still a place where all legislation required a 2/3 majority for passage; and if, as the constitution outlined, the Senate were a body filled with representatives selected by State Houses instead of popular election – then perhaps Senators could not be purchased by multinational interests. Alas it is not.
Passage of the 17th amendment took away the very intentional roadblock of the Republican framework that Jefferson spoke of when he called it a saucer to cool the hot emotional tea of short-sighted legislation. The constitution outlined consent as “two-thirds” (66), which was progressively watered down to become “three-fifths” (60) as the majority rule; and substantively, as it now stands according to democrats objectives, one-half plus one (51).
We are on the precipice and the GOP operate as if the constitution burning can be restored if they just reach across the aisle more.