Why do corporations genuflect to the left wing screaming porkers? Many of them have experienced a significant amount of lost business after their announcements of this new policy. No reasonable director would vote to reduce his sales by 50%. The answer is the Wall Street set again. Many of these firms want to borrow significant amounts of money for various reasons during the year. The banks have begun requiring the ESG formula to be a ruling factor regarding their loan portfolios. If the corporations wish to receive a loan, they have to accept these conditions. This is the latest attempt for total domination of the society.
It is good for the economy, in general, when more people work. It is bad, however, for the quality of life and for society, in general, when our senior citizens become WalMart greeters, and our mothers leave their children to their own devices because they must work to feed the family, fill the gas tank, heat or cool their home, and pay for health, car, and homeowner insurance.
What Do The Facts Show? The Data Behind Manchin and Schumer’s “Inflation Reduction Act” Contradict The Name
Depending on the level of productivity of the “investments,” which will be poor at best, and the growth of government – instead of subtracting the two numbers (in the table above) from each other, more realistically, they should be added together as more budget-busting economic effects on the American people. Another trillion dollar boondoggle from Congressional politicians.
Biden’s Commerce Secretary Gina Raimondo has been singing a similar tune while playing the semantics game. And President Joe Biden himself joined in the fun on Monday, stating, “We’re not going to be in a recession. My hope is we go from this rapid growth to a steady growth.” Got that? Not only are we not in a recession, we’re in a period of “rapid growth.” Fantasy is much more appealing than facts if you’re a Democrat.
For those of us who bothered to study Macroeconomics 101 in school, you needn’t have bothered. In our first week of the class, we learned that two successive quarters of negative GDP growth meant we were in a recession. But that’s not true, don’t you know. In fact, if you got that question wrong on an exam, we suggest you contact that professor and ask for your grade to be changed. It turns out that, especially in an election year, the definition of a “recession” is whatever the hell Joe Biden and Janet Yellen say it is.
When we look at GDP growth over the past few decades, it has been fairly linear (the black line below). Some falsely believe debt has been growing at the same rate as GDP. However, when looking at debt creation, it has been exponential. In other words, trendline debt growth keeps getting steeper and steeper over time (the red trendlines below), creating the exponential arc pattern from horizontal to vertical.
In many ways, an inflation wage depression that may be coming is worst than a normal recession/depression. A recession has a recovery phase – a wage depression is systemic and can be more permanent. Though you may have a job, your standard of living will change to the point it will force changes in your life. “You will own nothing, and you will be happy.”
Remember, markets are forward-looking to what might happen 6 to 18 months into the future. Most of the Fed’s rate hikes are already priced into the markets. The market is already thinking that the induced recession caused by the rate hikes will force the Fed to only lower them to fight the evident recession they created. More free money is coming – fuel for the markets. This is what the markets are digesting now.
Now Biden has declared a climate emergency. He figures that he can force U.S. manufacturers and oil producers to produce more, which will force prices to drop. He figures he can open our markets to foreign Green Energy products which will drop prices further. Tariffs that protect our domestic producers, forget them in the effort to get more Green energy products here cheaper, and sooner.
America is sitting on more oil reserves than any other nation in the world, and all of what we now endure has been so unnecessary, except for the fact this is what Red Joe and the Democratic Party Communists insisted we must do. They insisted on shutting down fossil fuels for some fantasy Green Utopia that no one will ever see in this lifetime, supposedly to make us “energy independent”, as they have selectively forgotten we were energy independent under President Trump’s administration.
The Federal Reserve Bank Act of 1913 has its’ roots in the blackmail of Woody Wilson. He and members of congress were bribed or blackmailed into the support of the entirely new financial system for our country used to benefit Wall Street. The purported idea was to eliminate large swings or “panics” in the economy. The Fed was actually designed to make sure the banks survived their incompetence and greed.
Everybody was thrilled to get stimulus checks in the mail during the COVID-19 pandemic. “It’s free money!” many exclaimed. But nothing in life is free. This includes “free” things handed out by the government. According to estimates by Bloomberg Economics, US households will spend $5,200 more this year than they did last year on the same consumption basket. That breaks down to $433 extra in expenditures every single month.
What is particularly interesting about this chart is that today, Americans’ personal financial situation is not that bad, though the trend is definitely down. It is the six-month outlook that is most troubling. They see the storm clouds building. This perception will cause purchasing decisions to turn negative and then becomes a self-fulfilling phenomenon. Politically, it also spells trouble for the Democrats in the 2022 midterm elections.
The way financial markets puked this week, they must have started reading the news. Let’s face it, the headlines are a little short of reassuring. The $6.49 price on a gallon of diesel is enough alone to tell you that the nation can’t do business the way it’s set up to do, and there isn’t a new model for running things ready to launch — not even Klaus Schwab’s utopia of robots and eunuchs.
We can see the economic deterioration virtually anywhere we look, and we can feel the economy slipping. We’re watching our economy being driven off a cliff in a blue convertible, and we can see the senile buffoon in the White House behind the wheel with the accelerator floored and a stupid look on his face.
So what is going on here? Perhaps what we are seeing in the US is a real change in the culture and the economic models brought on by the various crises – social justice (e.g., BLM movement), Covid, climate change, and now Ukraine, for example. It is a radical part of Left-wing politics consuming America. Some have attributed it to what is called the Great Reset.
We hear about the shattering impact of gas prices every day, as the administration and the media try to spin the problem as Vladimir Putin’s fault. For months we were lectured about the hardships impacting the health care industry caused by inconsiderate ignoramuses who refused an experimental vaccine. But have we heard anyone in the media talking about this financial obliteration facing thousands of fellow Americans?