Tag Archives: Inflation

Oct 29 2022

Biden Solution to High Retail Food Prices, Eat Generics and Store Brands


Posted originally on the conservative tree house on October 28, 2022 | Sundance

CTH has covered the origin of food inflation since we first raised the alarms in the spring of 2020.  A confluence of events starting with the fracturing of the food supply chain (shutting down restaurants, hospitality venues, schools, cafeterias, etc), created the initial major problem.  Consumer Packaged Goods (CPG) sold at retail stores could not keep up with demand after 50% of the food supply system was shut down.

Within the U.S. retail food supply chain (350+ million people), manufacturing CPG products relies on a system of staying one to two harvest cycles ahead of demand.  However, when restaurants and fresh food venues were closed, very quickly frozen, bulk stored and siloed U.S. food storage systems, the storage needed for CPG products, were emptied.

Long after the time when all food distribution was reopened, the shortages of CPG products continued. You saw the result with empty shelves at the supermarket.  It takes a long time (years) for those inventories to refill.

We warned of this in 2020 and then followed the predictable outcome in 2021 and 2022.

When Joe Biden then shut down the U.S. energy production system in early 2021, the massive increases in energy costs -and the shortages of natural gas- became fuel on the inflationary fire of CPG goods.  Again, in October 2021 CTH noted that retail prices were going to rise quickly, and they did.

Throughout 2022 food prices have risen dramatically as the food distribution and processing system was now under pressure from all sides.  The shortage of inputs (to refill food storage and warehousing needs) combined with the much higher costs to generate those inputs -the direct result of the exploding energy costs- created massive inflation pressure.  The pricing result we are seeing now (third wave of food inflation) is exactly what we have stated, discussed and predicted for more than two years.

While all food costs are skyrocketing, the prices for manufactured or processed food are much higher than the price increases for fresh food.

While both fresh and CPG foods have risen in price due to energy costs, the processing of food uses more energy… and that energy comes at a higher price…. so the CPG inflation is much higher than the fresh half of the supply chain.

In essence, the CPG goods carry higher farming costs plus much higher manufacturing costs.

For those who say, ‘fresh food is healthier‘, you are correct.  However, let me also remind you that we cannot feed 350 million people with fresh food alone – and simultaneously export billions of tons of bulk food products like grain, corn and soybeans.

The U.S. food distribution system needs processed food for retail restaurants, cafeteria, lunchrooms and grocery stores.  [Ex. Italian restaurants will not start making pasta sauce from tomatoes, and if they did you likely couldn’t afford to eat there.]

So here comes Joe Biden, without a clue in the world of what I just described above.  And his food inflation solution?…. well, you just have to hear it yourself to see it.  WATCH (01:35, prompted): 

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[Wall Street Journal] – […]  The personal saving rate, a measure of how much money people have left over after spending and taxes, fell to 3.1% from 3.4% in August. It is down from 7.9% a year ago as consumers tap their rainy-day funds.

U.S. credit-card balances hit $916 billion in September, returning to prepandemic levels, credit-reporting firm Equifax Inc. said. Balances are up 9% from January and about 23% higher than their pandemic low in April 2021.

A closely watched reading of underlying inflationary pressures, meanwhile, picked up last month and remained near a four-decade high. When stripped of volatile food and energy prices, the PCE price index strengthened to a 5.1% year-over-year increase—the strongest pace since March.

Friday’s report comes on the heels of other data showing consumers’ momentum weakened in the summer months. Consumer spending accounts for roughly two-thirds of total U.S. economic output. (read more)

Oct 29 2022

Nigel Farage on Britain


Armstrong Economics Blog/BRITAIN Re-Posted Oct 29, 2022 by Martin Armstrong

Oct 28 2022

Joe Biden Claims Current Gas Prices Lower Than When He Took Office, States Falsely Gas Was Over $5/Gal When He Was Inaugurated


Posted originally on the conservative tree house on October 27, 2022 | sundance 

Will big tech and social media remove Joe Biden for violations of misinformation, disinformation and malinformation?  Considering his remarks today, they should.

Reading from a teleprompter loaded with lies about the economy, Joe Biden stunningly states that gas prices are lower today than when he took office. Further claiming that gasoline was $5/gal.  {Direct Rumble Link} Nothing about any of his economic claims is true.  WATCH (1 min):

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Allowing people to return to work after the pandemic lockdowns is not “creating jobs.”  And gasoline was not $5/gal when Joe Biden took office.

Oct 28 2022

Techfiltration


Posted originally on the conservative tree house on October 27, 2022 | sundance 

Just a quick notice and alert to highlight some common technological ‘glitches’ and occurrences that are appearing around the internet, coincidentally timed as a result of the pending 2022 midterm election.

By now everyone is familiar with Big Tech control mechanisms like blocking, shadow banning, downgrading and throttling.

Essentially, these are methods within the technology space that are designed to influence opinion and block access to information and communication adverse to the ideology of the provider(s).

Most often we associate those terms with social media platforms; however, within the infrastructure of the internet itself the same intent is also carried in various forms you might not be familiar with.  I am seeing a lot of deployed control systems triggered recently, it is worth mentioning in case you notice something different.

Internet Service Providers (ISP’s) are increasingly directing your background internet travels and blocking you from access to content they define as against their interest.  Major players in the field of providing online access (comcast, Xfinity, AT&T, etc.) as well as regional operators also have a vested ideological stake.  If you find yourself having difficulty navigating the internet, especially during this election season, be aware the ISP provider could be in control.

Cell phone communication networks also have the ability to control data transmitted through their systems.  Text messages containing links to unapproved or dissident websites can be blocked by code and algorithms assigned to monitor traffic.   Phone browsers and portable internet hot spots may also be controlled by the provider.  You may not be aware, but your agreement with your cell phone provider gives them the ability to filter data on your device according to their individual standard.

Again, just be aware.

Browsers are also major players in the field of filtering information and controlling user behavior.  It could be as subtle as an image or link not appearing for you, or it could be total blocking of traffic to website destinations they have defined as adverse to their interests.   Large activist organizations provide lists of websites and content to feed into the filtration system.   Just be aware your browser may indeed be controlling your content and as a result controlling your perspective.

The obvious issues with internet search engines (google, duck-duck etc.) are well documented, however increasingly Apps and authorized software additions to your devices come with mechanisms to control what information may be visible to you.   This is where the terms “disinformation”, “misinformation” and “malinformation” become useful tools to justify the interception and blocking of your activity.

Sometimes the network may provide a warning or pop-up in their effort to stop you from reaching the information they want to control, but increasingly it just happens in the background, and you have no idea.   This is one of the unspoken benefits in the “cookie” system.  In addition to providing direct advertising experiences based on your browsing history, you as a user, may be identified as a dissident voice and assigned a label within the same cookie identification process.

Most people who use the internet have no idea a unique label has been assigned to them in the virtual space. Those labels can be grouped together and contained within the control systems of cyberspace.

Increasingly the techfiltration process has become a Staziesque public-private partnership.   You can well imagine what happens when the people in control of technological systems have an ideological mission to shape public opinion, simultaneous with the government people who define dis-mis-and malinformation delivering requests from the FBI and DHS to the technological partners who control the techfiltration process.

The bottom line, just be aware that information you may choose to access, research or share, is heavily controlled by the providers you select to facilitate your online information and communication networks.  You are likely right now blocked from accessing information and have no idea it’s happening.

If you cannot reach a website, see an image, view a page, or navigate a system, it’s likely not anything you are doing wrong; most often it’s the result of a tech control system designed to keep you away from the data.  Additionally, valid information like emails or text messages are increasingly identified as spam or blocked completely by the email or cell phone service you have subscribed to.

All of this is just an fyi, because I happen to notice these types of curious conversations taking place with increased frequency right now.  Lots of people are wondering why they cannot access or see things.  These are likely not ‘glitches.’

All the best,

Comrade & Dissident, Sundance

Oct 28 2022

Whistleblower Releases Internal FBI Guidance Document Highlighting Disinformation as an Election Crime


Posted originally on the conservative tree house on October 27, 2022 | sundance

The dissidents at Project Veritas have received leaked whistleblower information from the FBI highlighting a guidance document that puts “disinformation” into the category of an “election crime.” [Source Article Here]   According to the internal guidance, sharing “false or inaccurate information intended to mislead others” may lead the FBI to charge people with election crimes.

[WASHINGTON, D.C. – Oct. 27, 2022] Project Veritas published a newly leaked document today provided by an FBI whistleblower.

The document details how the Bureau will tackle what they consider to be “election crimes.”

It lists “misinformation” as a potential election crime, describing it as “false or misleading information spread mistakenly or unintentionally.”

The document also lists “disinformation” as a potential election crime, describing it as “false or inaccurate information intended to mislead others.”

It continues, “Disinformation campaigns on social media are used to deliberately confuse, trick, or upset the public.”

These categories could raise questions about who gets to determine what is “misinformation” and/or “disinformation.” (read more)

Now you know why I continue to say there is no such thing as “disinformation”, “misinformation” or “malinformation”, there is only information.  Once we allow a superseding system within government to start defining ‘information’, we open ourselves to control over thoughts and speech.

Comrades, you were not born with a brain that requires you to believe everything you read or see.  You were born with a brain allowing you to absorb information and make independent decisions as to the validity of it, truthfulness or lies.  Do not abdicate your thinking of responsibility for discernment to anyone – especially the government.

P

Oct 28 2022

U.S. GDP Grows 2.6% in Third Quarter Driven by Energy Exports and Declining Goods Imports, While Domestic Economy Shrinks


Posted originally on the conservative tree house on October 27, 2022 | sundance

The topline of a third-quarter GDP at +2.6% looks good [DATA HERE]. However, a look into the numbers shows alarm.  The domestic U.S. economy, as measured by Main Street creating goods and services for domestic consumption, contracted in the third quarter.

The Gross Domestic Product (GDP) calculation is a valuation of all goods and services created within the economy, minus the value of goods and services imported.  However, even a cursory look under the topline number shows how the import/export dynamic creates the illusion of economic growth.

In the third quarter we exported hundreds of billions worth of energy products, including massive liquified natural gas (LNG) sales to Europe, and oil sales to the global market from the strategic petroleum reserve.  We also sold billions in weapons to Europe. Those sales are calculated as exports, lifting the GDP number (Table 1).  At the same time, imports of durable goods into the United States collapsed; meaning less was deducted from the GDP.  The net import/export impact on the GDP dynamic was +2.77% (Table 2).

Meaning the third-quarter import/export dynamic alone contributed 2.7% growth to the percentage of change for the prior period.  However, the total GDP only rose 2.6%, because the actual economic value created domestically got smaller.  We made less internally, sold less internally and consumers purchased less internally.

You can see the import/export dynamic in whole dollars within Table 1:

TABLE 1 – We exported 17.2% more goods in the third quarter than in the second quarter (that’s mostly energy sales and food sales to the global market).  We imported 8.7% less goods in the third quarter than the second quarter.  That’s mostly the drop in companies ordering products from overseas for sales in the United States.  Companies imported less because inventories climbed as consumers stopped purchasing durable goods and non-essentials.

Table – 2 (modified for clarity) shows us the impact or contribution from the import/export dynamic:

In Table-2 you can see the net impact of higher exports and lower imports lifted the GDP by 2.77%.  However, the total GDP only gained 2.6% due to the other dynamics inside the economy slowing down.  The import/export dynamic alone was enough to explain the entire gain in Q3 GDP and is a function of US support of the European war economy as the US exports record number of commodities (oil and gas), as well as Joe Biden’s massive multi-billion weapon sales to Europe.

The Biden administration will use the +2.6% GDP number to claim the U.S. “recession” never existed, despite two previously negative quarters.  However, while technically the talking point may be true, the domestic U.S. economy (Main Street) is making less stuff and consumers are buying less stuff.

The savings rate is also declining.  BLS: “Personal saving was $626.1 billion in the third quarter, compared with $629.0 billion in the second quarter. The personal saving rate—personal saving as a percentage of disposable personal income—was 3.3 percent in the third quarter, compared with 3.4 percent in the second quarter.”  American households are saving less because essential purchases like housing, rent, food, fuel and energy, are costing much more.

When households evaluate their checkbooks, a Biden administration claim of a growing economy falls flat – because the only part of the economy that is growing is the part that fuels the energy needs of Europe.  Main Street USA is suffering through the massive inflation that Joe Biden has created, and purchases of anything other than necessities have come to a near halt.

Oct 27 2022

Davos in the Desert


Armstrong Economics Blog/World Trade Re-Posted Oct 27, 2022 by Martin Armstrong

Some of the biggest players have gathered in Riyadh, Saudi Arabia, for the annual Future Investment Initiative (FII). The conference is often referred to as “Davos in the Desert,” as they are competing with the World Economic Forum to be the largest economic conference of the year. Washington’s relationship with Saudi Arabia is at a standstill, but that is not preventing Wall Street’s chief names from attending.

“American companies will make their own decisions about their presence and where to invest, taking into account a range of factors including legal constraints, the business environment, and reputational concerns that can arise from public policy choices made by host countries,” said Karine Jean-Pierre, the White House press secretary.

Former Treasury Secretary Mnuchin and Trump’s son-in-law Jared Kushner, who both run private funds backed by the Saudis, were in attendance. JPMorgan’s Jamie Dimon and Goldman’s David Solomon spoke at the event along with Blackstone’s Stephen Schwarzman and investor Ray Dalio. FTX CEO Sam Bankman-Fried also spoke at the event. No one associated with the Biden Administration was in attendance as Washington is re-evaluating its relationship with Saudi Arabia.

Saudi Arabia’s economy is rapidly growing. The event is Prince Mohammed’s opportunity to show that the kingdom is ready to be seen as a financial powerhouse beyond its energy sector. The private sector is making it known that they are willing to invest in Saudi Arabia despite Washington’s reluctance.

Oct 27 2022

Ukraine & its Horrible Dark Past is Taking the World Down With It


Armstrong Economics Blog/Ukraine Re-Posted Oct 26, 2022 by Martin Armstrong

COMMENT: Hi Marty,

I. Deep seated hatred
You have written frequently how hate in a country keeps on running deep as result of intense war violence long time ago. And you do not see how this is ever going away.

I was born in the Netherlands Rotterdam area. What the Germans did over here during WWII was similar. My parents being tiny children at the time. I recall messages my grandparents’ generation imprinted on me when i was young, and true, it took me a long time before i opened up to reconnect to the Germans. Today, i love our neighbouring country and its citizens.

Looks like the horrorific acts are not the key driver. As hate kept on being fed by government, economy, it sustains.
I was shocked to see how easy government was able to enflame hate again here from 2020 onwards (and earlier).
Ukraine’s economy was deliberately repressed. Similarly Yugoslavia, Ireland at the time. So hatred sustained.

II. Russians taking down power grid / Elon Musk
The timing of the Russians taking down the power grid is interesting : a few days after Elon took down Starlink.
The Russian Military has been openly complaining about the intelligence support from US.
So Putin being a chess player, immediately moved, replying : “Check”.

I get confused where Elon stands. You said you tried to reach him, but failed. That makes me think.

MA

REPLY: Yes, I would love to contact Elon for he has seen the true face of Ukraine. Anyone who remotely implies that peace should be an option, is told to shut up, threatened, or silenced in any way possible. Zelensky is just a puppet. Nobody in their right mind would sacrifice his country for a strip of land that historically has been occupied by Russians for hundreds of years – never but ethnic Ukrainians who joined Hitler because he promised to give them their own country BECAUSE Ukraine was never a country of its own. They hated the Polish for that region was once Poland. They hated the Russians because Kiev was their birthplace. The hated Jews because they were just Jewish. There are people in Israel that reject Zelensky for his wife is Christian and his children are baptized. He became Jewish when asking for money from Israel.

Objectively, you would have to call this an invasion by Ukrainians for conquest. But that, of course, would not be “politically” acceptable because the United States also hates Russians and that is why the US funded this civil war and directed it to start with during the interim government in 2014 which sent its army to invade the Donbas BEFORE there was any elected government. The people of Donbas have pleaded for help from the West for their oppressions but because they are Russians, the West refuses to listen out its agenda and hatred.

It is important to remember that Ukrainian Nazis have NEVER been called to account for all their genocides against Polish, Jews, and Russians. They pretend that was the UPA, a Ukrainian nationalist organization with the long term plan of establishing a mono-ethnic state that excluded the Poles and was aligned with the Nazis. The Neo-Nazis are dominant in Ukraine and Bandera’s flags and posters were there at Midian in 2014 all over the place. Because they have never been put on trial for their atrocities that even horrified the German Nazis, they have refused to even apologize to anyone. Even Japan apologized for using Korean women as “comfort girls” and the Swiss turned over money that was hidden in accounts for Nazis and Jews. Ukraine’s hatred is ongoing and it is propagated by the government, which is why it never dies.

The hatred of the Germans was prevalent. That is why Stanley Milgram conducted his experiments because people were saying that Germans were somehow just different. He established what became obedience to authority. The real issue back then became Russian. My father was a colonel under General Patton from North Africa to Berlin.  Communism was the great threat. He told my father that Germany was not the real enemy, it was Russia and he wanted to keep going right to Moscow. The president removed him for that.

Germany was rehabilitated by the political powers only because they saw Russia and Communism as the real threat. That is why they NEVER put a single Ukrainian on trial. The accounts of their actions terrified even the Germans. The cut babies out of a pregnant woman and put in a live cat and stitched her up. All of these things are documents. Poland has come out and confirmed that Ukraine REFUSES to apologize for its “dark past” and the world is willing to go to nuclear war all for these people?

Then the world deserves to be destroyed. This hatred of Russia will be our own undoing. Never before since World War II have we ever witnessed world leaders promoting war. Every leader has sought peace. Henry Kissinger has been invited by EVERY president until Joe Biden. Zelensky, this high-heel dancing puppet, claims this is not 1938 and Russia will invade all of Europe which is total bullshit. There seems to be hatred that has consuming people for this is really a war for Climate Change – to destroy Russia since 50% of its GDP is fossil fuels.

Zelensky will fly to safety. He has set his own country up to be destroyed begging WWIII to take place there and for NATO to invade. He cares NOTHING about the Ukrainian people. He is too busy counting all his money stashed offshore with his promises of a golden visa to America.