Argentina to Stop Printing Money


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

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

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

Socialism simply does not work.

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

North Korea Asks to Join the War


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

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

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

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

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

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

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


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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

Prepare and time your affairs accordingly.

Civil Unrest in Panama Continues


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

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

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

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

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

American Household Debt Surpasses $16 Trillion


Armstrong Economics Blog/USA Current Events Re-Posted Aug 8, 2022 by Martin Armstrong

American household has reached a new high, according to a report by the Federal Reserve Bank of New York. Total household debt has surpassed $16 trillion for the first time in American history. Americans have taken on $2 trillion in additional debt since the pandemic. Aggregate household debt balances rose by $312 billion in Q2 2022 alone, marking a 2% increase from Q1.

Mortgages were the largest contributing factor to the post-pandemic uptick after rising by $207 billion to $11.39 trillion. Americans have been relying more on credit to make purchases amid inflation, and credit card balances have spiked by $46 billion last quarter. Non-housing balances saw the largest uptick since 2016 after increasing by $103 billion. Auto loans saw a $33 billion rise as the cost of autos remained at a high.

Delinquency on debt “increased modestly” in all categories. Around 95,000 people faced bankruptcy in Q2 2022, which is still near historic lows. Of the $758 billion in new mortgage debt accumulated in the last quarter, 65% is held by people with credit scores over 760. Outstanding student loan debt reached $1.59 trillion last quarter, 5% of which was delinquent.

People may be able to pay off their debt now, but as inflation and interest rates rise, that will become increasingly difficult. While mortgage debt is no cause for concern, the over-reliance on credit purchases will not help Americans lower debt. Inflation must come down for the people to maintain their quality of life.

Fauci’s Fears Falls on Deaf Ears


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

Dr. Anthony Fauci is relentless. Biden told us the fable of the winter of death and destruction last year. Now Fauci is warning that people are “going to get into trouble” if they’re not vaccinated and boosted by the fall and winter months.

After hearing of the countless side effects and realizing the vaccination does not prevent infection or transmission, most Americans do not want a booster. The Kaiser Family Foundation found that 70% of Americans, 228 million people, are currently not up to date on their vaccinations. Only 48.4% of Americans (children over five included) opted for a booster shot.

Fauci claims people should do it for their “community.” Why? I could have Moderna, Pfizer, J&J, and the rest injected into me, and it still would not prevent me from being prone to transmitting the virus. Fauci himself caught COVID, and even Biden continued to work and failed to isolate after testing positive for the virus. Fauci’s fears are falling on deaf ears as people are becoming aware of the truth – the vaccines do not work.

Technocracy the New Progressive Utopia


This is a paper I wrote in 2021

How We are being Taken Over by China


This is a paper I wrote in April 2022

A Solution to The conservative communication problem


Originally posted on Bill Whittle in early July 2022

Bill Whittle’s idea has a lot of merit and we need to promote this as much as possible!

Watch the animation here: https://youtu.be/PnLo3Quw2mA Our Members make our world go round. Join us as a Citizen Producer by clicking here: https://BillWhittle.com/register/