Inflation continued to surge, reaching 5.4% in September. Janet Yellen has never been right about anything and keeps calling this “transitory,” as if it will vanish in a few weeks. The Labor Department’s Consumer Price Index, which is supposed to measure a basket of goods and services as well as energy and food costs, came in at 5.4% in September from a year earlier, well beyond expectations. However, our model was projecting a rise in inflation into 2021 which is 13 years up from the November 2008 low. It is interesting how the COVID restrictions with lockdowns came in on target with our computer’s forecast. Curious how events seem to fulfill the forecast when it is done by a computer rather than human judgment.
Nevertheless, as you can see from the chart, inflation has bounced on a month/month basis, but it has not yet reached the Downtrend Line. The long-term forecast beyond a mere decade projects the historical high will be due in 2034, which should exceed all previous highs. A month/month number above 1.05% will signal that inflation is breaking out, and we will indeed make all-time record highs going into 2034.
The numbers are out — 4.3 million people in the US quit their jobs in August. This is the largest number since 2000. The leading sector is hotels and restaurants. I have a friend who has a daughter who had two jobs. She worked as a waitress/bartender at night and at a health food store during the day. She was very industrious, to say the least, and quite impressive. However, she quit the health food job because they demanded a vaccine. She said the bar owner was going to impose a vaccine rule and more than 50% of the staff said they would quit.
Meanwhile, New York’s bars and restaurants are hurting for business because of the vaccine mandates. Our most honorable leaders, who are most likely taking money from Pfizer lobbyists worldwide, are realizing that resistance is not futile. You can mandate vaccines and pretend they are 100% safe, but the truth always surfaces. The people can bring down the entire system if they simply refuse to participate.
Many journalists are too busy selling Biden’s propaganda about the vaccines. The FDA admits there are risks, but they, in their sole discretion, announced they “believe” the benefits outweigh the risk without any explanation of the analysis or a single word of caution (e.g., if you have certain conditions, you should not take the vaccine) despite doing so for other vaccines. So while the press and the Biden Administration are ignoring the facts and the trend, this only raises the question: How much has Pfizer and Moderna paid you?
Posted originally on the conservative tree house on October 13, 2021 | Sundance | 249 Comments
I do not expect White House Spokesperson Jennifer Psaki to understand how her bosses policies are driving massive price increases; nor do I expect Psaki to understand economics and inflationary impacts. However, the scale of her false statements surrounding inflation are not just false, they are now dangerous.
Following the release of the consumer price index [SEE table 2], in her press briefing today, Jen Psaki outlined the White House perspective on inflation, and specifically the Fed claims surrounding “transitory inflation.”
In her statements today, Psaki referenced people comparing the prices of 2021 consumable goods to 2020 and 2019. [Video prompted below] Within the statements, the scale of falsity is off the charts. WATCH [Video at 19:00 to 22:42, prompted]
There is not one single thing about that three minute verbal exchange that is accurate. Fast turn consumable goods, groceries etc., did not drop in 2020 during the first year of the pandemic. Factually, all goods but especially consumable goods increased in price throughout the pandemic, because demand actually increased and the supply chains were unable to keep up.
Example. A loaf of bread at $2.50 in 2019, climbed to $3.00 in 2020. That price jumped again to $3.75 this year (2021) and will likely continue rising as monetary policy driven inflation continues devaluing our currency.
Even if, as Psaki claims, inflation slows down (not likely) – “decelerating inflation” does not mean declining prices; it means a slower rate of price increase. Stuff still costs more, it just costs more at a slower rate. Consumable goods will cost more in 2022 than they do this year. The 2022 loaf of bread likely to climb to $4.00; it will never return to the 2019 price of $2.50 because the dollar is worth less.
This massive inflation is a direct result of the multinational agenda of the Biden administration in combination with the spending spree. Inflation is a feature not a flaw, and it has nothing whatsoever to do with COVID. The first group to admit what was obvious were banks, specifically Bank of America, because the monetary policy is the primary cause.
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 Donald 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.-EU 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 actual 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 ever-increasing 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. 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 value means cheaper exports for the massive multinational conglomerates who now control our farms and farming resources (Big AG and raw materials). China, SE Asia and even the EU purchase U.S. food and raw material at a lower price. That means less food and raw material in the U.S. which drives up prices for U.S. consumers.
It is a perfect storm. Higher costs for imported goods (durable goods) and higher costs for domestic consumable goods (food). Combine this dynamic with massive increases in energy costs from ideological Green New Deal policy, and that’s fuel on a fire of inflation.
Annualized inflation is now around 8 percent, and it will likely keep increasing in the short term. 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 household purchasing of durable goods drop because people have less disposable income.
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 Fed keeps printing money. The dollar continues to be weakened. 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.
Tucker Carlson hit this point very well last night:
Posted originally on the conservative tree house on September 12, 2021 | Sundance | 78 Comments
This is not a surprise data-point for readers here. However, it is good to see honest statements from corporate executives on what to expect with food inflation.
As noted by Kroger Chief Financial Officer Gary Millerchip in a call with financial media, we can expect to see even more rapid inflation in food prices overall in the next several months:
MSM – Cincinnati-based Kroger Co., which had $132 billion in sales last year, says inflation is running hotter than management previously anticipated and that expectations are now for prices to rise 2% to 3% over the second half of this year.
Kroger is “passing along higher cost to the customer where it makes sense to do so,” said CFO Gary Millerchip on the company’s second-quarter earnings call on Friday. (read more)
The reason for more inflation is not too difficult to understand. Fresh foods show fast price increases immediately because they have almost no pre-existing inventory. Fresh foods go from field to fork the fastest, and price increases show up immediately. The same applies to restaurants.
However, processed foods and shelf stable foods have a deeper inventory, the turns on that inventory take longer, and as a consequence, it takes longer for the price increases to show up. Millerchip is simply saying the total supply chain price increases are going to hit, and they are going to hit even harder than the last few months, as the new processed inventory carries a higher cost.
The skyrocketing prices at the grocery store are predictable based almost entirely on Joe Biden’s pro-Wall Street and Multinational Corporation policies. Main Street is getting hammered, and the working class is suffering as a direct result.
Their specific accountability for these outcomes is why the Biden administration is trying to distract and blame COVID-19 for supply chain issues. However, it is not COVID driving the prices, it’s Joe Biden policies that benefit multinationals. {Go Deep}
Food products are fast-turn consumable goods, and the inflation in the food sector is jaw-dropping already. However, fresh and processed foods turn at different inventory levels.
Obviously fresh foods spoil fastest (think produce, fish, meats and dairy), so they are replenished more quickly, and the thin supply chain (field to fork) passes along increased costs fast. Processed foods have a longer shelf life (boxed, canned, frozen, etc), and as a consequence, have a much larger inventory level in manufacturing, warehousing and retail storerooms/shelves. Within processed foods, there is a lag between cost increase at origination and that cost hitting the stores.
The problem identified within the current ‘producer price index’, is that price increases in the raw material and intermediate material are building into the supply chain. Keep in mind, the entire supply chain is dependent on energy costs and the fuel prices that impact transportation.
The retail consumer supply chain for manufactured and processed food products includes bulk storage to compensate for seasonality. There are over 800 commercial and public warehouses in the continental 48 states that store frozen products (2020 data). The previously processed food price increases are currently reflected on store shelves (already hurting). However, the coming processed processed food price increases will be much, much higher. We will see even higher prices on processed foods in the supermarket.
The same price increases happen for restaurants, albeit faster as they follow the similar supply chain to fresh foods.
Pro Tip – Buy your Thanksgiving and Christmas holiday shelf-stable items now (spices, condiments, flour, sugars, dried foods etc.) before the prices go up in the next few months.
Posted originally on the conservative tree house on August 17, 2021 | Sundance | 228 Comments
The U.S. Census Department releases retail sales data today showing a strong contraction in consumer spending for July [MSM LINK]. The out-of-touch financial pundits were looking for a 0.3% decline; however, the drop was four times greater with a contraction of 1.1% in spending.
“The slide in retail sales comes after Friday’s preliminary consumer sentiment report from the University of Michigan showed one of the largest drops on record, leading some strategists and economists to warn of downside risk to the sales data.” (link)
This should not be unexpected for those who read here. Massive price inflation on essential goods is eating up wages. Food, fuel and energy price increases are changing consumer spending habits. Non-essential purchases have stopped….. they haven’t slowed, they have stopped. ←Emphasize this because it is not showing up yet in the data lag.
The data reflects that auto sales were the primary contributor to the decline in spending (-4.3%). This should make sense to people because auto purchases are the largest general consumer purchase outside of home purchasing.
When purchase decisions are made by families; and food and fuel prices are skyrocketing; replacing a vehicle is not essential. Auto sales are a key indicator of consumer confidence and income.
Overall inflation is the primary driver. Real wages are declining (wages – inflation), and disposable income is dropping quickly. Americans need to start talking very deliberately about what is about to happen. CTH predicted this and has been walking through the visible outcomes as each set of new data surfaces {SEARCH BOX}. Nothing happening right now is unforeseen or not easily understandable.
There is a cascading effect that happens within the economy. Income shrinks, then spending shrinks, then employment shrinks and work hours reduce. It is an unavoidable outcome inside the middle-class economy.
Two-thirds of our national economy (GDP) is dependent on middle-class consumer spending. Any impact to that spending cornerstone triggers downstream consequences. Large ticket items (like cars) are the first to drop. [Car sales have declined 10.4% from their peak in April.] Luxury goods in general come next.
Wage-earners, families around the table, husbands and wives, start making decisions on finances based on income outlays. The roof over your head is the priority; then comes food, and the prices are rising; then gasoline, and again rising prices; finally facilitating expenses for work and school.
I said in June, at a macro level home prices had reached their peak (last two weeks of May, first two weeks of June was apex). Obviously, there are some geographic home value increases still happening as COVID related regional issues and work opportunities are shifting populations. There is also a lag and ripple effect that takes time to work through the economy. The macro-apex will not be visible until next year.
People go where the work is, and the work is in the freedom zones (red states/regions). Population shifts keep some area home prices increasing. However, on a national macro-level the apex has been reached. People cannot afford higher mortgage payments and simultaneously deal with massive inflation on essential purchases.
Economic pressure works to the benefit of the command and control authority who wish to force vaccinations upon people. The fear of losing a job becomes more of an issue for people when income security is threatened and they see food prices rising so quickly. It is unnerving, unsettling and for paycheck-to-paycheck families extremely stressful. This creates leverage for corporations to require vaccinations for employment. I wish I had the answers; alas, I do not.
Bottom line is… Depending on your personal situation, prepare yourself now for prices to continue rising on both consumable and durable goods. In the longer term, specifically due to a lack of purchasing, durable good prices will level and eventually drop. Less people buying stuff makes prices drop as competition triggers and businesses selling durable goods look to survive. Unfortunately at that point we are usually headed to a recession.
The downside for a drop in durable good purchasing is the workforce behind the manufacturing, distribution and sale of those goods are at risk of losing employment. Again, a natural outcome. For the auto-industry, and heavy industrial manufacturing, this is the time of year when retooling is taking place and some manufacturing and production lines are closed. However, when they return to production those companies might be shocked to find fewer purchase orders for the goods they produce.
Employment is currently stable (especially in the freedom zones); but we should watch for continued signs of consumer spending contraction. Any employment contraction will be made worse by the millions of illegal aliens now purposefully permitted to enter our nation.
Keep in mind, the Federal Government is pumping money into their command and control economy. This short-sighted (I would say purposeful and ideological) monetary and economic policy is contributing to massive inflation.
Inflation puts pressure on incomes and savings…. which puts demands on government to support income losses…. which leads to govt pumping more money. This is the dependency and welfare cycle that seems intentionally being deployed by Biden and the socialists behind him.
FORBES – “Consumers spent less last month than economists had expected, buying fewer things online and holding off on car purchases, the Census Bureau reported Tuesday morning, following Friday’s report of “a stunning loss of confidence”
[…]Consumers spent 1.1% less in July than June, more than the 0.3% decline economists cited by MarketWatch had been expecting, after increasing 0.7% the previous month. The decline was driven by the lack of motor vehicle sales, which fell 4.3%. Nonstore retailers, which includes online shopping, fell 3.1%” (link)
The Federal Reserve’s take on the coin shortage says that there are ample coins in the economy, but the banks have also been closed so there was a shortage also created by the fact that businesses could not get coins from a local bank that was operating only in a virtual mode. This also contributed to the problem. So banks, mints, transportation, and mines were all shut down which has created the problem you see in coin shortages, but this similar problem has infected all of the economies. So we have shortages in just about everything.
What COVID has done is tapped into those who prefer welfare and have no problem not working as long as everything is free. Organizations have been formed to keep living for free with no consideration of what that really means to the economy as a whole. They are out in full force to prevent evictions and they only look at this from their perspective. If the landlords are not paid, then they cannot pay their mortgages, and then the banks foreclose. Living free is not a long-term solution but we can easily see how many would love Guaranteed Basic Income with no responsibilities. Without rents, landlords can’t pay mortgages but also repairs. So they will demand landlords repair their place but refuse to pay for anything. What will happen is simple. They will convert private property into state housing and then you will have converted New York City to one giant ghetto.
Everywhere you look there is help wanted signs yet unemployment will not decline. I get a lot of emails from small businesses that cannot go back to normal because there is not enough staff. We even have Judges who have totally lost their mind ordering Maryland must continue to pay the extra unemployment benefits. This is raising unemployment costs in taxes upon those who are working.
You really can’t make up this nonsense. Nobody in their right mind would have created such a system – even a socialist, which would just argue to confiscate property to prevent evictions. Those of us who are working will pay more in taxes to support those who want a free lunch and everything else.
QUESTION: My question is how do I interpret an increase of 5% or more in the capital flows heat map to any country? Does this mean the stock market is projected to go up? the currency? how I am supposed to interpret it? How I am supposed to interpret it. Can you give me please some examples?
I have been trying to figure it out for a long time now
ANSWER: Our Global Capital Flow Heat Map tracing the money flows in and out of nations. It is collective and includes moving cash, buying bonds, real estate, and equities. It is the overview you will get nowhere else. It is not forecasting anything specific. What it is doing is showing the major trend. You then look at the various individual reports in that region.
You will find all the major sectors in Socrates from bonds and stock to real estate. Just comparing our US and German real estate indexes, you can see the difference in capital flows which are reflected in the heat map. The Map clearly shows that capital is pouring out of Europe and it is even moving back to China and Russia. Europe is squarely in the hands of the World Economic Forum and the intention to crush the economy to BUILD BACK BETTER is in full swing. Europe will be the first to fall in the world.
Posted originally on the conservative tree house on August 4, 2021 | Sundance | 43 Comments
Repost from June by Request – 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 already said in April they would “support inflation”, 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 that said months ago that new 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 ever-increasing 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.
It has begun. Wells Fargo has told all its customers that it is shuttering down ALL personal lines of credit. The bank has made it clear that it is shutting down ALL existing personal lines of credit and it will no longer offer such products. That includes revolving credit lines, which typically let users borrow $3,000 to $100,000. The bank used to sell these products as a way to consolidate higher-interest credit card debt or to pay for home renovations. This also included avoiding overdraft fees on linked checking accounts.
Customers have been given a 60-day notice that their accounts will be shut down. Wells Fargo has declined to comment when asked by Reuters. Previously, Wells Fargo suspended home equity loans, claiming it was due to the economic uncertainty with COVID. Wells Fargo has been struggling with a tarnished reputation following a series of consumer financial scandals. In 2016, the Wells Fargo account fraud scandal led to the resignation of CEO John Stumpf and resulted in fines of $185 million by the Consumer Financial Protection Bureau.
Despite the fact that Wells Fargo Bank likes to portray it was formed on March 18, 1852, the truth is that it was simply a freight company back then. It was in New York City where Henry Wells and William G. Fargo joined with several other investors to launch their idea of a freight company to cover the trade between the East and West Coasts. What sparked the idea was the discovery of gold in California in 1849. They recognized that there would be a demand for cross-country shipping. Wells Fargo & Company was formed to take advantage of this great opportunity.
In July 1852, Wells Fargo & Co began its first loads of freight from the East Coast to mining camps scattered throughout northern California. The company contracted with independent stagecoach companies to provide the fastest possible transportation and delivery of gold dust, mail, and other various valuable freight. Wells Fargo began buying gold dust, selling paper bank drafts, and providing loans to help fuel California’s growing economy.
In 1857, the business was so profitable that Wells, Fargo & Co. formed the Overland Mail Company, known as the “Butterfield Line,” which provided regular mail and passenger service. The company earned a reputation as a trustworthy and reliable business. It adopted as its logo the classic stagecoach which became famous even in later movies. Wells Fargo & Co. would also send an employee on horseback to deliver or pick up a message or package which became known as the Pony Express.
There were other competitors. John Bamber first advertised July 12, 1858, as the only authorized for daily and weekly newspapers. On September 9, 1870, Bamber incorporated as “Bamber Express Co.” with four other trustees. Then on January 1, 1874, a change in ownership was announced. On July 6, 1874, it was announced that Whitney & Co. Express had purchased the company.
Wells Fargo & Co. began a merger and acquisition taking over other Pony Express and stagecoach lines. Wells Fargo took over the Overland Mail Company in 1860. Six years later, Holladay Express was added. By this time, Wells Fargo & Co emerged and the leader in transportation in the West. When the transcontinental railroad was completed three years later, the company began using the railroad to transport its freight. In 1905, the company split whereas the freight business stood separately and they embarked on banking. Wells Fargo took over the Nevada National Bank and established new headquarters in San Francisco. By 1910, the freight company was covering 6,000 locations from the Eastern urban centers connecting them to the Midwest farmers and then ranchers and miners from Texas to California as well as the Pacific Northwest where the lumber mills operated.
During World War I, the U.S. government nationalized Wells Fargo’s shipping routes and combined them with the railroads into the American Railway Express. This actually terminated Wells, Fargo & Co. as a transportation and delivery business. The banking side was hit by the 1906 San Francisco Earthquake, but the vaults held up while the building collapsed. After World War II, the Wells Fargo Bank American Trust Company reduced its name to just Wells Fargo Bank in 1962.
Wells Fargo from its split which was decided in 1904, peaked on the 112-year cycle in 2016. While it elected two of the near-term Yearly sell signals, the first long-term resides at $28.80. A year-end closing below that will be the kiss of death for Wells Fargo.
I have explained that we know nothing about who created blockchain, but it allows every transaction to be traced. With a credit card, they can tell if you bought something. With Bitcoin, they can tell I gave you money first, and then you bought something. Central banks are moving to cryptocurrency because this will ensure 100% tax collection. The Bank of England was saying that parents will be able to control what their children spend money on. The problem is that the government will control what we too can spend on. Here is the BIS telling you the reality of the future. They want 100% of all transactions taxed. I suppose the girl next door will have to watch your kids for payment in kind — chocolate bars or clothes.
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
