Kroger CFO Notes More and Faster Food Inflation Coming in Next Several Months


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.

Consumer Spending Unexpectedly Collapses in July as Essential Purchases Become Primary Focus of Working Class, Inflation is The Underlying Problem and It Will Get Worse


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)

Shortages & Unemployment


Armstrong Economics Blog/Economics Re-Posted Aug 13, 2021 by Martin Armstrong

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.

Using Global Capital Flow Heat Map


Armstrong Economics Blog/Capital Flow Re-Posted Aug 10, 2021 by Martin Armstrong

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.

An Honest Explanation About Joe Biden Inflation, and It Has Nothing to do With COVID


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.

Hope that makes sense, and love to all.

~ Sundance

One Father’s Fight Against Critical Race Theory


Posted originally on the conservative tree house on July 17, 2021 | Sundance | 77 Comments

Meet Kory Yeshua, father of three, and vocal opponent of Critical Race Theory. From young hip-hop and rap artist to fervent servant of God, Kory is a passionate patriot and a believer in the America dream. In this profile report, you’ll learn about his journey and what happened when his first grade daughter came home from school one day and asked, “Daddy, why weren’t the black kids allowed to play with the white kids.””

Support for John:  www.letsrollamerica.us
GoFundMe Link: https://www.gofundme.com/f/let039s-roll-america
GiveSendGo Link: https://givesendgo.com/LetsRollAmerica

World in Chaos


Armstrong Economics Blog/Opinion Re-Posted Jul 17, 2021 by Martin Armstrong

In South Africa, the currency has fallen hard as riots have devasted the country. They looted the mall, except for the bookstore. The former South African President Jacob Zuma turned himself in to begin a 15-month sentence for contempt of court. This has sent the country into a tailspin. Contempt of court is an abuse of judicial power, for they claim they can lock anyone up for any reason whatsoever.

In Greece, there are thousands of people protesting against the discrimination of people who have not been vaccinated and the mandatory vaccinations and other measures imposed by the Greek government to tackle the pandemic in Athens. There are far worse viruses that have taken place, yet governments have not destroyed the economies and taken such totalitarian measures. This in itself has raised skepticism as to what is really going on when the death rate is minimal.

In Britain, 47% of those with COVID have been vaccinated. In Australia, the mob stormed the government as in ancient Roman times resulting in chaos on the streets of Melbourne just hours before the city entered its fifth lockdown. The protesters have marched through the CBD, saying if they do not act, he will get away with it again. What I am hearing is that many are starting to say they would rather die in freedom than live in prison indefinitely. This is our problem. Governments will NEVER admit a mistake, and the fact that they are so involved with the vaccines, we have nobody to offer independent verification of anything.

Meanwhile, the Biden Administration wants to shut down all dissent and has been putting pressure on Big Tech to shut down people who disagree with the administration.

The greatest problem here is that Biden has stated UNDER NO CIRCUMSTANCE will he ever fire Fauci. That implicitly means he refuses to investigate anything about his research or the connection with Wuhan. That means the Biden Administration will NEVER provide the truth about COVID or anything else. The US will not admit that the origin of COVID might be linked to Fauci — he is above any investigation.

150 Multinational Corporations, The Wall Street Crowd, Urge Congress to Take Over U.S. Elections


Posted originally on the conservative tree house on July 14, 2021 | sundance | 251 Comments

There Are Trillions At Stake…

Here we go again, 150 multinational Wall Street corporations write a collective letter urging congress to pass the stalled legislation that would trigger a federal takeover of U.S. elections.  [Reuters Article Link] I’m not going to post the article directly, because it is the same group of characters, the same motives and intentions that we previously wrote about [HERE].

[Please note: all leftist media call them “corporations” when the narrative is purposed to attack capitalism (ie. ‘Occupy’), and then the media switch to the term “companies” when the narrative engineering needs to support the same corporations they previously attacked.  The Alinsky wordplay is part of the design.  Democrats say “corporations bad” to their woke sheep, so when they need to hide their alignment with the same businesses, the media switch words to call them “companies.”  I point this out because it is actually a useful tool to help people wake up and spot the manipulative and purposeful hypocrisy of the leftist ideology.]

At the heart of the issue, we are yet again back to the familiar battle, Wall Street -vs- Main Street.

Remember in April when 100 multinational corporations held a conference call to organize messaging on state election laws?  Well, this is the same crew only now with targeted messaging toward congress.

Additionally, I guarantee you the G-20 discussions about a “global minimum corporate tax” are being leveraged by the White House against these U.S. Multinationals in order to get them in line supporting the federal election takeover.  I guarantee you backroom deals and carve-outs, collusion between government and corporations, are being made.

Their commonality of purpose.  The multinationals need the federal takeover of elections because Wall Street needs globalism in order to continue advancing their financial objectives.  Main Street nationalism, or economic patriotism, is antithetical to their income statements.  The current White House and the Multinational Corporations have a common enemy, Main Street.

The current alignment between government and corporate industry is also why the mega-corporations were enhanced during COVID rules/regulations and shutdown dictates, while small businesses on Main Street were crushed.

The multinationals need the U.S. to be a service driven economy, and simultaneously, the corporations need the security of never seeing President Trump’s “America-First” policies restarted.  That’s why the multinational-corps support the Democrats goal to take over elections; economic nationalism must be stopped.  There are trillions at stake.

There is a difference between an ordinary corporation and a multinational corporation.  Multinationals hate capitalism. However, when I say most multinational corporations hate capitalism many people look confused, so let’s remind ourselves via a short video that explains why:

The first myth busted in that video explains why corporations do not like capitalism. That’s also why Big Tech is also against capitalism.

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.

Consider if you will, the backdrop of current U.S. politics; the influence of Wall Street and the multinationals who align with globalism; the reality of K-Street lobbyists writing the physical legislation that politicians sell to Americans; and then overlay what you are witnessing as those same multinationals now attack the foundation of our constitutional republic.  All of this is CORPORATISM, a continuum that people were ignoring for decades.

To think that President Trump alone could carry the burden of correcting four decades of severe corruption of all things political, without simultaneously considering the scale of the financial opposition, is naive in the extreme.

♦ POTUS Trump was disrupting the global order of things in order to protect and preserve the shrinking interests of the U.S. He was fighting, almost single-handed, at the threshold of the abyss. Our American interests, our MAGAnomic position, was/is essentially zero-sum. His DC and Wall-Street aligned opposition (writ large) needed to repel and retain the status-quo. They desperately wanted him removed so they could return to full economic control over the U.S, because it is the foundation of their power.

You want to criticize him for fighting harder against those interests than any single man has ever done before him? If so, do it without me.

I am thankful for the awakening Donald J Trump has provided.

I am thankful now for the opportunity to fight with people who finally understand the scale of our opposition.

Without Donald J Trump, these entities would still be operating in the shadows. With Donald J Trump, we can clearly see who the real enemy is.

In these economic endeavors President Trump was disrupting decades of financial schemes established to use the U.S. as a host for their endeavors. President Trump was confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of the host (USA) ie YOU. There are trillions at stake; it is all about the economics; everything else is chaff and countermeasures.

The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle-class to thrive.

Elite financial interests, including those within Washington DC, gain wealth and power, the U.S. workforce is reduced to servitude, “service”, of their affluent needs.

The destruction of the U.S. industrial and manufacturing base is EXACTLY WHY the middle class has struggled, and exactly why the wealth gap exploded in the past 30 years.

Behind this dynamic, we find the international corporate and financial interests who are inherently at risk from President Trump’s “America-First” economic and trade platform. Believe it or not, President Trump is up against an entire world economic establishment.

When we understand how trade works in the modern era, we understand why the agents within the system are so adamantly opposed to U.S. President Trump.

♦The biggest lie in modern economics, willingly spread and maintained by corporate media, is that a system of global markets still exists.

It doesn’t.

Every element of global economic trade is controlled and exploited by massive institutions, multinational banks and multinational corporations. Institutions like the World Trade Organization (WTO) and World Bank control trillions of dollars in economic activity.

Underneath that economic activity there are people who hold the reigns of power over the outcomes. These individuals and groups are the stakeholders in direct opposition to principles of America-First national economics. Collectively known as “The Big Club”.

The modern financial constructs of these entities have been established over the course of the past three decades. When you understand how they manipulate the economic system of individual nations you begin to understand why they are so fundamentally opposed to President Trump.

In the Western World, separate from communist control perspectives (ie. China), “Global markets” are a modern myth; nothing more than a talking point meant to keep people satiated with sound bites they might find familiar. Global markets have been destroyed over the past three decades by multinational corporations who control the products formerly contained within global markets.

The same is true for “Commodities Markets”. The multinational trade and economic system, run by corporations and multinational banks, now controls the product outputs of independent nations. The free market economic system has been usurped by entities who create what is best described as ‘controlled markets’.

U.S. President Trump understood what had taken place. He used economic leverage as part of a broader national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions. The Big Club.

Understanding how trillions of trade dollars influence geopolitical policy, we begin to understand the three-decade global financial construct they seek to retain and protect.

That is, global financial exploitation of national markets.

FOUR BASIC ELEMENTS:

♦Multinational corporations purchase controlling interests in various national outputs (harvests and raw materials), and ancillary industries, of developed industrial western nations. {example}

♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks. (*Note* in China it is the communist government underwriting the purchase.)

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Against the backdrop of President Trump confronting China; and against the backdrop of NAFTA renegotiated; and against the necessary need to support the key U.S. steel and aluminum industries; revisiting the economic influences within the modern import/export dynamic will help conceptualize the issues at the heart of the matter.

There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.

For three decades economic “globalism” has advanced, quickly. Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?

Influential people with vested financial interests in the process have sold a narrative that global manufacturing, global sourcing, and global production was the inherent way of the future. The same voices claimed the American economy was consigned to become a “service-driven economy.”

What was always missed in these discussions is that advocates selling this global-economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress.

It’s not.

It’s not natural at all. It is a process that is entirely controlled, promoted and utilized by large conglomerates, lobbyists, purchased politicians and massive financial corporations.

Again, I’ll try to retain the larger altitude perspective without falling into the traps of the esoteric weeds. I freely admit this is tough to explain and I may not be successful.

Bulletpoint #1: ♦ Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.

This is perhaps the most challenging to understand. In essence, thanks specifically to the way the World Trade Organization (WTO) was established in 1995, national companies expanded their influence into multiple nations, across a myriad of industries and economic sectors (energy, agriculture, raw earth minerals, etc.). This is the basic underpinning of national companies becoming multinational corporations.

Think of these multinational corporations as global entities now powerful enough to reach into multiple nations -simultaneously- and purchase controlling interests in a single economic commodity.

A historic reference point might be the original multinational enterprise, energy via oil production. (Exxon, Mobil, BP, etc.)

However, in the modern global world, it’s not just oil; the resource and product procurement extends to virtually every possible commodity and industry. From the very visible (wheat/corn) to the obscure (small minerals, and even flowers).

Bulletpoint #2 ♦ The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

During the past several decades national companies merged. The largest lemon producer company in Brazil, merges with the largest lemon company in Mexico, merges with the largest lemon company in Argentina, merges with the largest lemon company in the U.S., etc. etc. National companies, formerly of one nation, become “continental” companies with control over an entire continent of nations.

…. or it could be over several continents or even the entire world market of Lemon/Widget production. These are now multinational corporations. They hold interests in specific segments (this example lemons) across a broad variety of individual nations.

National laws on Monopoly building are not the same in all nations. Most are not as structured as the U.S.A or other more developed nations (with more laws). During the acquisition phase, when encountering a highly developed nation with monopoly laws, the process of an umbrella corporation might be needed to purchase the targeted interests within a specific nation. The example of Monsanto applies here.

Bulletpoint #3 ♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

With control of the majority of actual lemons, the multinational corporation now holds a different set of financial values than a local farmer or national market. This is why commodities exchanges are essentially dead.

In the aggregate the mercantile exchange is no longer a free or supply-based market; it is now a controlled market exploited by mega-sized multinational corporations.

Instead of the traditional ‘supply/demand’ equation determining prices, the corporations look to see what nations can afford what prices. The supply of the controlled product is then distributed to the country according to their ability to afford the price. This is essentially the bastardized and politicized function of the World Trade Organization (WTO). This is also how the corporations controlling WTO policy maximize profits.

Back to the lemons. A multinational corporation might hold the rights to the majority of the lemon production in Brazil, Argentina and California/Florida. The price the U.S. consumer pays for the lemons is directed by the amount of inventory (distribution) the controlling corporation allows in the U.S.

If the U.S. lemon harvest is abundant, the controlling interests will export the product to keep the U.S. consumer spending at peak or optimal price. A U.S. customer might pay $2 for a lemon, a Mexican customer might pay .50¢, and a Canadian $1.25.

The bottom line issue is the national supply (in this example ‘harvest/yield’) is not driving the national price because the supply is now controlled by massive multinational corporations.

The mistake people often make is calling this a “global commodity” process. In the modern era this “global commodity” phrase is particularly nonsense.

A true global commodity is a process of individual nations harvesting/creating a similar product and bringing that product to a global market. Individual nations each independently engaged in creating a similar product.

Under modern globalism this process no longer takes place. It’s a complete fraud. Massive multinational corporations control the majority of production inside each nation and therefore control the global product market and price. It is a controlled system.

EXAMPLE: Part of the lobbying in the food industry is to advocate for the expansion of U.S. taxpayer benefits to underwrite the costs of the domestic food products they control. By lobbying DC, these multinational corporations get congress and policy-makers to expand the basis of who can use Food Stamps, EBT and SNAP benefits (state reimbursement rates).

Expanding the federal subsidy for food purchases is part of the corporate profit dynamic.

With increased taxpayer subsidies, the food price controllers can charge more domestically and export more of the product internationally. Taxes, via subsidies, go into their profit margins. The corporations then use a portion of those enhanced profits in contributions to the politicians. It’s a circle of money.

In highly developed nations, this multinational corporate process requires the corporation to purchase the domestic political process (as above) with individual nations allowing the exploitation in varying degrees. As such, the corporate lobbyists pay hundreds of millions to politicians for changes in policies and regulations; one sector, one product, or one industry at a time. These are specialized lobbyists.

It is ironic when we discuss corporate financial payments to government officials in foreign countries we call them corrupt. However, in the United States we call it lobbying, the process is exactly the same.

EXAMPLE: The Committee on Foreign Investment in the United States (CFIUS)

CFIUS is an inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person (“covered transactions”), in order to determine the effect of such transactions on the national security of the United States.

CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (FINSA) (section 721), and as implemented by Executive Order 11858, as amended, and regulations at 31 C.F.R. Part 800.

The CFIUS process has been the subject of significant reforms over the past several years. These include numerous improvements in internal CFIUS procedures, enactment of FINSA in July 2007, amendment of Executive Order 11858 in January 2008, revision of the CFIUS regulations in November 2008, and publication of guidance on CFIUS’s national security considerations in December 2008 (more)

Bulletpoint #4 ♦ With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

The process of charging the U.S. consumer more for a product, that under normal national market conditions would cost less, is a process called exfiltration of wealth. This is the basic premise, the cornerstone, behind the catch-phrase ‘globalism’.

It is never discussed.

To control the market price some contracted product may even be secured and shipped with the intent to allow it to sit idle (or rot). It’s all about controlling the price and maximizing the profit equation. To gain the same $1 profit a widget multinational might have to sell 20 widgets in El-Salvador (.25¢ each), or two widgets in the U.S. ($2.50/each).

Think of the process like the historic reference of OPEC (Oil Producing Economic Countries). Only in the modern era massive corporations are playing the role of OPEC and it’s not oil being controlled, thanks to the WTO it’s almost everything.

Again, this is highlighted in the example of taxpayers subsidizing the food sector (EBT, SNAP etc.), the corporations can charge U.S. consumers more. Ex. more beef is exported, red meat prices remain high at the grocery store, but subsidized U.S. consumers can better afford the high prices.

Of course, if you are not receiving food payment assistance (middle-class) you can’t eat the steaks because you can’t afford them. (Not accidentally, it’s the same scheme in the ObamaCare healthcare system.)

Agriculturally, multinational corporate Monsanto says: ‘all your harvests are belong to us‘. Contract with us, or you lose because we can control the market price of your end product. Downside is that once you sign that contract, you agree to terms that are entirely created by the financial interests of the larger corporation; not your farm.

The multinational agriculture lobby is massive. We willingly feed the world as part of the system; but you as a grocery customer pay more per unit at the grocery store because domestic supply no longer determines domestic price.

Within the agriculture community, the (feed-the-world) production export factor also drives the need for labor. Labor is a cost. The multinational corps have a vested interest in low labor costs. Ergo, open border policies. (ie. willingly purchased Republicans not supporting border wall etc.).

This corrupt economic manipulation/exploitation applies over multiple sectors, and even in the sub-sector of an industry like steel. China/India purchases the raw material, coking coal, then sells the finished good (rolled steel) back to the global market at a discount. Or it could be rubber, or concrete, or plastic, or frozen chicken parts etc.

The ‘America First’ Trump-Trade Doctrine upset the entire construct of this multinational export/control dynamic. Team Trump focused exclusively on bilateral trade deals, with specific trade agreements targeted toward individual nations (not national corporations).

‘America-First’ is also specific policy at a granular product level looking out for the national interests of the United States, U.S. workers, U.S. companies and U.S. consumers.

Under President Trump’s Trade positions, balanced and fair trade with strong regulatory control over national assets, exfiltration of U.S. national wealth is essentially stopped.

This puts many current multinational corporations, globalists who previously took a stake-hold in the U.S. economy with intention to export the wealth, in a position of holding contracted interest of an asset they can no longer exploit.

Perhaps now we understand better how massive multi-billion multinational corporations, and the political institutions they pay for, were/are aligned against President Trump; and they will never relent in their need to see the risk he/we represents destroyed.

I will never relent in my support for anyone who fights this enemy.

I will align with and encourage anyone who joins this fight.

If you are looking for criticism against the only person I have ever witnessed who actually fought our correct enemy, look elsewhere.

I am thankful for President Trump.

CTH will never stop the fight….

.

Wells Fargo – Banking Crisis?


Armstrong Economics Blog/Banking Crisis Re-Posted Jul 12, 2021 by Martin Armstrong

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.

Soros is NOT Targeting the Dollar


Armstrong Economics Blog/Corruption Re-Posted Jul 9, 2021 by Martin Armstrong

QUESTION: I believe there is a guy on YouTube ripping you off and claiming Soros is now targeting the dollar which he will destroy just as he did to the pound. Is Soros even capable of that? You said he was just the lead guy on that for the club. Care to comment?

DH

ANSWER: Anyone claiming Soros is now targeting the dollar is absolute garbage. The entire pound issue was that it was a FIXED rate in the European Rate Mechanism. It was a cheap play. If you were wrong, you lost nothing because it was a fixed exchange rate. Soros would NEVER go against a floating currency. He would be wiped off the face of the Earth. This is total nonsense. If this is their sales pitch to buy Bitcoin or something, they could face 20 years in jail. It is totally FALSE advertising — PERIOD!