Posts Tagged ‘Inflation’

Why Inflation Didn’t Matter Enough In Midterms

Sunday, November 13th, 2022

Most of us who look around at the economic conditions in the country woke up scratching our heads at the outcome of the election.  Under these economic conditions, how could voters fail to reject the party that has created the catastrophe of inflation, skyrocketing energy prices, and mounting food prices?  This question seems vexing at first, but it’s really not so difficult to understand.  Democrats are professionals at stealing elections, but they’re also professionals when it comes to setting a legislative agenda that will later backstop their political aims.  Democrats knew what they were going to do, as far back as the beginning of the pandemic, and what they’ve been doing since was designed to carry it into effect.  They’re diabolical, and with respect to inflation, they knew full well what they were going to do.  Inflation didn’t matter in this election to their voters.  Why?  The reason your red wave became a trickle is because Democrat’s constituencies scarcely feel it, at least to the scale working Americans have been feeling it.  Democrats undertook a plan to drive inflation while insulating the bulk of their own voters from it.

Borrowing new money into existence is how one goes about making inflation.  As Milton Friedman taught us, systemic “inflation is always and everywhere a monetary phenomenon.”  If one wants to create inflation, one need only increase the money supply without a corresponding increase to the value of the whole system.  Democrats knew this.  They printed more money into existence in the period of the so-called “pandemic” than any other period in our history. To add to this, what they did was focus the end-point for much of this cash into the pockets of their voters.  Starting in the Fall of 2020, they increased payments in programs such as SNAP(our modernized food-stamps program) by percentages in no way justified by market conditions at the time. A twenty-five percent increase in SNAP before the onset of significant inflation helped create that inflation, but more than this, what it did was to indemnify Democrats’ key demographics against the policies that Blue States and the Democrat Congress were imposing on the rest of us.

To get a red wave, in this environment of constant Democrat chicanery, you cannot possibly win when all of their key constituencies are being made whole by COLA increases and so on.  Democrats rely on the dependent folks to swell to the polls in election after election, and they’re quick to remind them who got them the loot. Think of it. We know that roughly half of Americans get a government check directly.  Still more are on the government teat somewhat indirectly.  The entire education establishment from college to kindergarten is heavily latched-onto the government teat. This isn’t rocket science.  If you want to know why Democrats could manage to win in this catastrophic economic condition, you need only realize that to a large degree, their voters aren’t feeling it.

Do you see it now?

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The Economic Big Lie

Friday, January 7th, 2022

Inflation from Hell is coming

Ladies and gentlemen, the evidence is everywhere you care to look. We’re sliding off an economic cliff, and today’s jobs report is more evidence. Contrary to what the puppet Obiden Regime is telling you about the performance of the economy, the truth is dramatically worse. Their continued reliance on printing money, and sending out support checks/benefits, is driving us into a ditch, and that ditch looks like the Grand Canyon.  We’re told the pittance of 199,000 new jobs created last month is good news. Folks, at that rate, the workforce size is shrinking, or at best, flat. Hidden beneath all of the nonsense being spewed by the labor department is a contraction in the size of the workforce, or “labor/workforce participation.” This tells the truth, and it’s the thing they can’t hide. Workforce participation is falling off a cliff. If this government wanted to change the dynamic, they’d immediately halt all hand-outs and drive people into the workforce. Instead, they’re supporting people to remain unemployed, and this is leading to the supply chain problems you’re experiencing, but it’s going to get worse.

The simple fact is that the people now running the United States are intentionally driving us further into crisis. Soon, we’re going to see inflation at levels none of us have experienced before. The longer they drive this false COVID crisis, the worse it will be. There’s no way this is accidental, and anybody telling you that in the future is either a dupe or a liar.  It’s now so late in the game, preparations may no longer be possible. I’ve always advocated preparedness here on this site.  Time may be short. While I was writing this up, Sundance over at TheConservativeTreehouse has posted a dire warning.  I’d urge you to heed it.

Our economy stopped recovering the moment Joe Biden stole his way to the Presidency. I can’t say this strongly enough: It’s not accidental. It’s the plan.

 

2016: What’s the Point?

Thursday, October 2nd, 2014

I hear and read endless speculation about this one and that one, and who’s in and who’s out, always superseded by the next day’s news, and always bereft of any measurable facts.  All of this can be both entertaining and frustrating.  All of it may be altogether pointless.  You see, the country is dying now.  By the time a new president is inaugurated in January of 2017, on our present course, it may not make any difference.  The country may be closing in on that tipping point, if we haven’t passed it already, at which nothing will be done to save us, irrespective of party, principles, or propaganda.  Our nation is deathly ill, if not terminal, and yet the politicians continue to chatter on as though there’s no end in sight.  Ignoring the stock market, which is many thousands of points over-valued due to cheap money practices at the Federal Reserve, this economy is a wreck.  As always, I urge my readers exercise care in what they believe or are willing to consider plausible.  In this post, I intend to revisit a topic I haven’t covered in a long while, because I think you ought to consider it.  The subject is the very real possibility of a hyperinflationary great depression that will make the 1930s look like a day at the beach.

As a reference to what hyperinflation looks like, here’s a graph of the infamous hyperinflation in the German Weimar Republic:

German Hyperinflation 1918-1924 (Wikipedia)

Long-time readers will remember I have used John Williams’ ShadowStats website as a reference in the past.  The nature of Mr. Williams’ warning hasn’t change, except to become substantially more strident inasmuch as such a calamity now seems to be possible at any moment.  For those of you who don’t remember, here was his Hyperinflation forecast of 2012:

2012 Hyperinflation Special Report(pdf format)

In 2014, Mr. Williams has updated his report, once in January, with a second installment in April. Here are links to these two in PDF format as well:

Hyperinflation 2014 – The End Game Begins

2014 Hyperinflation Special Report, Second Installment

 In these reports, Mr. Williams goes to extraordinary lengths to describe to you what I’ve told you right along, since the birth of this website:  Any alleged “economic recovery” was a fraud, and the nation is in deepening financial and economic trouble. Naturally, it’s not as though you hadn’t suspected it on your own, the obvious signs being what they are, but with the drumbeat of media, many people are soothed into complacency over a long enough time such that they begin to doubt what their own eyes and wallets are telling them.  In these most recent installments, Williams goes into great detail, putting numbers to the assumptions, providing actual data to support his conclusions.  In this sense, it is time for another reality check, because while the bulk of the people you know may well be ignoring hard reporting, in favor of popular media garbage, somebody ought to be warning them.   Chances are that being the good citizens most readers here tend to be, and being the sort of people who are trying to save their nation from disaster, you’ve been warning them right along.  Now, when they dismiss your warnings, you can dare them to read these reports.

If you’re among that number of people who are desirous of dismissing all of this as “Chicken Little” talk, I’d dare you directly.  Read these reports and if you aren’t at least a bit concerned, concerned enough to learn more, there’s no reaching you anyway.  In 2011, Sarah Palin and others were sounding the alarm.  She was ridiculed and mocked,  but the hard data supported her warnings.  All along, I’ve been warning you of the dangers of the monetary policy of the Federal Reserve, and the grotesque expenditures of the Federal Government.  In the years since 2008, when this latest crisis began, the Fed has borrowed into existence a sum approaching(if not exceeding) fifty trillion dollars.

All of this money-printing or “digitizing” will necessarily lead to a calamity of unprecedented scale.  There can be no escape from the laws of economics, any more than there can be an escape from the law of gravity.  The only question is: When? As Mr. Williams points out in his report, the conditions are already in place.  It’s simply a matter of triggers.  With that in mind, I’d ask my readers to prepare to the extent they are able.

Some will argue that all of this is tantamount to alarmist fear-mongering.  but Williams does offer this, in his second installment for 2014:

“Conceivably, immediate massive and fiscally painful action by the federal government to restore and maintain long-range U.S. government solvency still could avoid the looming dollar collapse, but the related political issues appear now to have been pushed off until after the 2014 midterm election, again, as those controlling the government continue to push politically-difficult choices and actions as far into the future as possible. That has been explicitly demonstrated in actions by both the White House and Congress in the last several years. Nonetheless, despite political efforts to dodge the issues, the U.S. dollar and the deficit do matter, and the looming financial storm likely will break before the election.”

In other words, getting our financial and fiscal house in order could still serve to avoid this calamity, but as he notes, and as we are all too aware, the probability of that being done is low. The question isn’t “Will there be pain?” The real question is whether it will be pain we choose while we maintain the ability to moderate it, or an uncontrolled and apocalyptic pain from which there will be no recovery.  We’re very much like a stage four cancer patient in that only the most radical treatments have any chance of saving us, and the chemotherapy and radiation will be so severe and thorough as to inflict more pain than we might want to endure, but failing to choose this, the results are known and unavoidable.

I have significant doubts as to whether there exists the political will to induce pain via the radical treatments necessary.  The politicians in Washington DC are hoping to stave-off this calamity through the current election cycle.  I believe this is folly, but I also know they’re banking on the notion that they will be able to deal with this after the election, but you and I know the truth: There’s always another election.  The dust will still be settling from the 2014 election when the first real moves for 2016 begin.  They will already begin to make the political calculi about how to survive through the next election, or how to save the next election for their respective parties, but none of them will be thinking about any of this. The truth is that saving the nation will be furthest from their minds.

We have a president who is a functional economic illiterate, driven by dogma of a failed ideology.  We have a Congress driven by short-run notions of self-preservation of their power.  We have a people who possess a low tolerance for bad news in good times, and a complete intolerance for self-imposed discipline particularly where it implies any sort of pain.  It’s time to consider what all of this will combine to create in the coming years, if you haven’t done the math already. People are talking about 2016 like that represents some sort of panacea, but ladies and gentlemen, our nation may not make it until 2016.

 Editor’s note: I realize that the linked reports from John Williams’ site constitute a fair bit of reading, but like most issues, the devils lie in the details. Understanding the roots of our impending calamity, and the historical precedents as well as the actual manipulations of statistics by the current regime are critical in understanding what is afoot. While it’s a lot of reading, it’s entirely worthwhile.

Note 2: There was an error in the links to the two 2014 reports. These have been fixed.