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Things Are “Bat-Shit Crazy” Right Now

This article was originally published by Tyler Durden at ZeroHedge. 

*FULL TITLE: Things Are “Bat-Shit Crazy” Right Now – Paul Tudor Jones Likes Bitcoin, Debunks Transitory Inflation Narrative

Paul Tudor Jones, the billionaire investor and founder of Tudor Investment Company, joined the hosts ofCNBC‘s Squawk Box for an early morning interview where he discussed the potential implications of whatever Fed Chairman Jerome Powell decides to tell the market on Wednesday when he speaks after the central bank’s latest 2-day policy meeting.

Jones began by making his position on The Fed’s narrative very clear:

“The idea that inflation is transitory, to me … that one just doesn’t work the way I see the world.”

PTJ isn’t the only big-name investor who is skeptical of the Fed’s inflation narrative (a group that also notably includes Jeff Gundlach). At this point, whenever the Fed does decide to finally taper its stimulus measures, markets are poised to go “bat sh*t crazy”. That’s why this week’s Fed meeting is so important.

“I think this Fed meeting could be the most important Fed meeting in Jay Powell’s career.”

Most expect Powell will once again choose to dismiss signs of intensifying inflationary pressures and ignoring data like last week’s inflation print. If that’s the case, PTJ said he believes investors should keep going all-in on the inflation trade.

“If they treat these numbers – which were material events, that were very material – with nonchalance, I think that’s a green light on the inflation trade,” Jones said in an interview on “Squawk Box”.

“I’d probably buy commodities, buy crypto, buy gold.”

But if the FOMC “course corrects,” something few expect at this week’s meeting, then markets could be in for a pumping ride.

“If they course correct, if they say, ‘We’ve got incoming data, we’ve accomplished our mission or we’re on the way very rapidly to accomplishing our mission on employment,’ then you’re going to get a taper tantrum,” Jones said.

“You’re going to get a sell-off in fixed income. You’re going to get a correction in stocks. That doesn’t necessarily mean it’s over.”

With so much confusion right now, exacerbated by the Fed’s refusal to meaningfully taper its post-COVID-19 stimulus,  PTJ said putting together a portfolio is no easy feat. As of now, he said he’s keeping 5% of his assets in bitcoin, 5% in gold, 5% in commodities, 5% in cash, and, as for the rest, who knows?

Of course, the Fed can’t keep its accommodative measures forever. PTJ said he’s grateful he’s not a pension fund manager because right now between bonds and stocks “they are so overvalued, they are at 100-year highs. I would have as many inflation hedges on as I possibly could.”

At one point in the interview, PTJ reiterated his support for bitcoin, which he previously endorsed on CNBC back in October.

“I like bitcoin. Bitcoin is math. math has been around fro 2 thousand years 2 + 2 will equal four for the next 2k years…bitcoin has appealed to me because bitcoin is a way to invest….do i want to have faith in that same reliability and consistency of human nature…”

As for bitcoin’s environmental impact, PTJ acknowledged that this might be a problem:

“it costs more to mine gold than it does to mine bitcoin. clearly, I’m concerned about the effects of bitcoin mining…if I was king of the world I would ban bitcoin mining until we found a better way.”

“I have a lot of friends heavily invested in crypto. I have a defensive position for myself and for my family, but I don’t even look at it any more.”

Tudor also offered some skepticism about the Fed’s strategy, saying that over-inflated financial assets are making him nervous.

I hope that we mean revert back to financial orthodoxy. I get nervous…

…you could argue that the Nasdaq is going to go up 20% if we stay at this pace in Treasury purchases…

I don’t know if that’s necessarily a good thing. I don’t know if continuing to increase valuations through monetization is the right course.”

Finally, CNBC’s Andrew Ross Sorkin finished off the interview with s simple question about taxing billionaires, which has been heavily in the news over a couple of weeks.

Watch the full interview below:

The post Things Are “Bat-Shit Crazy” Right Now first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Report: Federal Reserve tells workers to avoid using ‘biased terms’ like ‘Founding Fathers,’ ‘manmade’ — and even ‘singular generic pronouns’

The
Federal Reserve told employees to avoid using “biased terms” such as “Founding Fathers,” “manmade” — and even to ditch “singular generic pronouns,” Fox News reported, citing an internal webpage the cable network said it obtained.

What are the details?

A former Fed staffer with knowledge of the matter told Fox News the Federal Reserve’s Board of Governors issued the guidance for all employees nationwide April 29.

“Bias-free language recognizes diversity and avoids stereotyping, demeaning, or excluding people on the basis of gender, race, ethnic group, religion, age, ability/disability, or sexual orientation,” the guidance states, according to the cable network.

“Try to avoid words and phrases that may be considered offensive, pejorative, or prejudiced (whether consciously or unconsciously), as these can distract your audience from the ideas/information you’re trying to convey,” the guidance also says, Fox News noted.

What terms did the guidance reportedly mention?

The cable network said the guidance contains a list of off-limits “biased terms” that includes terms such as “blacklist,” “grandfathered,” and “Founding Fathers.”

Instead, employees should instead use alternate terms such as “denied,” “legacy,” and “Founders,” Fox News said.

Other terms such as “whitelisted, “manpower,” “manmade,” as well as “singular generic pronouns” – “he,” she,” “his,” and “hers” – should be replaced with more “bias-free” alternatives such as “allowed,” “artificial,” the cable network said.

While the Fed stopped short of suggesting alternative pronouns such as “ze” and “zir” — which many readers of TheBlaze are all-too familiar with — Fox News said the Fed indicated “they,” “their,” and “theirs” would be fine alternatives.

What did the Federal Reserve have to say?

A Federal Reserve spokesman issued the following statement on the matter, the cable network reported: “The Federal Reserve has no language directives for employees.”

Anything else?

The Daily Wire reported that the Federal Reserve’s regional banks recently hosted “Racism and the Economy” for the purpose of “understanding the implications of structural racism in America’s economy and advancing actions to improve economic outcomes for all.”

The outlet added that Republican U.S. Sen. Pat Toomey — a ranking member of the Senate Banking Committee — said he’d review the banks’ focus on “politically-charged issues, like global warming and racial justice.”

According to the Daily Wire, a letter from the Pennsylvania GOP senator to the Minneapolis, Boston, and Atlanta reserve banks reads:

Of course, racism is abhorrent and has no place in our society… I recognize the interest in studying economic disparities along demographic lines, such as race and gender. However, this subject matter is fraught with ideological assumptions and interpretations, and the work and analysis of the Fed seems heavily laden with political and value judgments.

Whether or not this is your personal view, I would remind you that only Congress has the authority to reform the Federal Reserve or modify its statutory mission. Moreover, I would caution you on the reputational damage being inflicted on the… Federal Reserve as a whole by pursuing a highly politicized social agenda unrelated to monetary policy.

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Was It the Biggest Political Flip-Flop Ever?

I don’t think anybody is surprised when politicians flip-flop.

George H.W. Bush with his “no new taxes” pledge provides a great modern example. But Alexander Hamilton arguably gave us the most damaging, if not the biggest, flip-flop ever when he did a complete 180 on constitutional interpretation in order to justify his national bank.

Like most supporters of the Constitution, Hamilton promised that the new federal government would only be able to exercise powers explicitly enumerated in the Constitution. But during his push for the First Bank of the United States, he suddenly discovered “implied powers.” Had he mentioned this idea during the ratification debates, the Constitution would never have been adopted.

The debate over the National Bank was about more than chartering a bank. At its core, it was an argument about the extent of federal power.

James Madison called out Hamilton and other supporters of the national bank in a speech on the House floor, highlighting their departure from the constitutional system as it was understood when the document was ratified.

“With all this evidence of the sense in which the Constitution was understood and adopted, will it not be said, if the bill should pass, that its adoption was brought about by one set of arguments and that it is now administered under the influence of another set; and this reproach will have the keener sting, because it is applicable to so many individuals concerned in both the adoption and administration.”

Ultimately, Hamilton got his bank and his arguments supporting it became the basis for loose constitutional construction that flipped the structure of the U.S. government on its head. Instead of a federal government exercising powers “few and defined,” Hamiltonian constitutionalism with its implied powers gave us a general government with powers “numerous and indefinite”

While Hamilton’s arguments may have won the day, they betrayed the Constitution.

And we’re living with the consequences to this day.

Sadly, people follow Hamilton’s example every single day. They chip away at what few limits on federal power remain in order to advance this or that policy agenda. And then they whine and complain when somebody they don’t like is in office and uses those same powers.

Limits only work when they are applied consistently. Hamilton knew this. He always wanted a strong national government. All he had to do to get his wish was tear down the constitutional fence around government power.

We’re wrapping up final edits on an e-book tentatively titled the Federal Reserve vs. the Constitution. It will give you a much deeper analysis of the national bank debate. It will be available later this month for TAC members first, with ebook and print editions for the general public to follow in the coming months. (Members’ site here) | (JOIN TAC here)

The post Was It the Biggest Political Flip-Flop Ever? first appeared on Tenth Amendment Center.

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JBS Meat Plant To Reopen Sometime Today

EDITOR’S NOTE: The plant may be open by the time this article publishes. 

JBS SA, the world’s largest meat producer, released a statement in the overnight session stating “significant progress” has been made to resolve a ransomware attack that they allege caused the shutdown of its US operations and some plants in other countries.

This looks like an excuse to blame the rising prices on anything but the inflation caused by the central banks. They are going to attempt to hide hyperinflation in fuel prices (blamed on the Colonial pipeline attack) and now, to cover the skyrocketing food prices, they are going to blame this cyberattack.

Greg Mannarino called this about a month ago.  These false flags are designed for us to not see who is really behind all of the nefarious actions and inflation (the ruling class and the central banks). He called this “scapegoat economics,” and that’s about the most accurate term for what’s going on right now.

Greg Mannarino: “Scapegoat Economics” & The Dark Secret We Are NOT Supposed To Know

“Our systems are coming back online, and we are not sparing any resources to fight this threat,” JBS USA CEO Andre Nogueira said in a statement.  That means those “resources” are money and that cost will be passed on to the end-user/consumer in the form of higher prices.  Given the progress, our IT professionals and plant teams have made in the last 24 hours, the vast majority of our beef, pork, poultry, and prepared foods plants will be operational Wednesday”, Nogueira said, according to a report by ZeroHedge. 

The cyberattack forced the shutdown of all JBS’ US beef plants, which account for almost a quarter of American supplies.

The White House is blaming Russia, of course, this should surprise no one.

White House Deputy Press Secretary Karine Jean-Pierre said Tuesday that the hacking group behind the attack is “likely” based in Russia.” “The White House is engaging directly with the Russian government on this matter, and delivering the message that responsible states do not harbor ransomware criminals,” she said.

Three weeks ago, another ransomware attack brought down Colonial Pipeline and now we have gasoline prices hiding the inflation of the massive money creation from the central banks.

Do not expect this to end.  What’s the next thing to experience a cyber attack? The power grid? Back in 2017, it was shown that the ruling class can do anything they want with the power grid:

Hacking The Power Grid: They Can Induce Blackouts On American Soil AT WILL

So, as always, stay prepared. Stay vigilant. Do your best with any preps right now that you may have overlooked.  Only time will tell just how far the rulers are willing to go to manufacture our consent to be slaves to them, but we do know that it is far from over.

Use your critical thinking and discernment.  It’s time to break those last mental chains and realize that government is slavery, and no one makes a rightful master and no one makes a rightful slave.

 

The post JBS Meat Plant To Reopen Sometime Today first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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We Just Got Even More Proof Inflation is On the Rise

This article was originally published by Brad Polumbo at The Foundation for Economic Education. 

The money in your bank account or under your mattress is worth less now.

The most widely-used metric for price inflation hit a 12-year high in mid-May, showing that prices had risen 4.2 percent over a year. But some argued this was just a one-off outlier, not indicative of a broader trend or serious problem stemming from runaway government spending and money-printing.

Their case just got a lot weaker. New figures released today by the Commerce Department offer even more corroboration that prices are seriously on the rise.

Another key inflation metric, the core personal consumption expenditures index, exceeded expectations and came in showing a 3.1 percent year-over-year increase in prices. If you factor in energy and food prices, the inflation figure rises to a whopping 3.6 percent.

It’s also worth noting that this index and others like it notoriously underestimate inflation.

Where is this inflation coming from? Well, at least in part, it stems from the Federal Reserve’s money-printing to fund COVID-19 “stimulus” efforts.

“Nearly one-quarter of the money in circulation has been created since January 2020,” FEE economist Peter Jacobsen explains. But printing more money doesn’t mean we actually have more stuff, and “if more dollars chase the exact same goods, prices will rise.”

The problem with these inflation levels, which are still far short of truly catastrophic hyperinflation, is that they erode your savings and purchasing power. The money in your bank account or under your mattress is worth less now. And unless your income has risen more than 3-4 percent this year, you’ve really had a pay cut, because what ultimately matters isn’t the number on your paystub but what it can buy you.

Simply put, public policy is all about trade-offs. And the downsides of government largess include more than just the traditional check you write to the Internal Revenue Service. When mounting price inflation erodes your paycheck, that too is a form of indirect taxation you can trace back to Washington, DC.

The post We Just Got Even More Proof Inflation is On the Rise first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Bidenomics: Inflation rises 4.2%, fastest pace since 2008

Inflation rose more than expected in April, with prices rising at the fastest rate in more than 12 years as the federal government continues to pump trillions of dollars into the economy to spur recovery after the pandemic.

The Labor Department reported Wednesday that the Consumer Price Index, a measure of prices paid for goods and services, including housing and energy costs, rose 4.2% from where it was a year ago. Economists had predicted only a 3.6% increase. Inflation rose by 0.8% in April vs. the expected 0.2% increase.

Because food and energy prices can change quickly with supply or demand shocks, a more stable measure of inflation is core CPI, which excludes those prices. Core CPI increased 3% over the last year and 0.9% in April. The estimated increases were 2.3% and 0.3% respectively.

An inflation increase of 4.2% is the fastest increase in inflation since 2008.

More from CNBC:

Energy prices overall jumped 25% from a year earlier, including a 49.6% increase for gasoline and 37.3% for fuel oil. That came even though most energy categories saw a decline in April.

Prices at the pump, which fell 1.4% in April, have resumed their climb in May, with the national average eclipsing $3 a gallon for the first time since November 2014, according to AAA. Further rises are likely from Friday’s cyberattack that shut down Colonial Pipeline’s main transmission line from Houston to New Jersey.

Used car and truck prices, which are seen as a key inflation indicator, surged 21%, including a 10% increase in April alone. Shelter, another key CPI component, was up 2.1% year over year and 0.4% for the month.

World events have also caused prices to rise, including production issues with semiconductors found in electronics products, the Suez Canal blockage in March, and increased demand for building materials like lumber after severe weather in Texas and elsewhere in the U.S.

The staggering rise in prices comes on the heels of a disappointing jobs report for April, when only 266,000 new jobs were created instead of an expected 1 million jobs and the unemployment rate rose from 6% to 6.1%.

Some economists had warned that President Joe Biden’s $1.9 trillion American Rescue Plan might inject too much money into the economy, leading to depreciating value of the dollar. Lawrence Summers, an economic adviser to President Barack Obama, wrote an op-ed for the Washington Post raising concerns that Biden’s stimulus might cause “inflationary pressures of a kind we have not seen in a generation, with consequences for the value of the dollar and financial stability.”

Olivier Blanchard, former chief economist at the IMF, likewise warned that Biden’s coronavirus relief package could “overheat the economy so badly as to be counterproductive.”

The specter of a stagnant economy with rising inflation haunts these economists’ nightmares. The 1970s and early ’80s were notorious for a phenomena known as “stagflation” — where prices and unemployment were rising together. In 1975, inflation reached a peak of 10.1% before falling to 5.9% the next year. By 1981, inflation had risen again to 9.6%.

A sharp increase in inflation could spur the Federal Reserve to raise interest rates in an attempt to discourage consumer spending and encourage savings, which would lower prices but contract the economy. Rising interest rates increase the cost of credit cards, loans, and mortgages, but also improve the earnings on savings accounts and certificates of deposits (CDs).

Since the 2008 financial crisis, the Federal Reserve has set a target interest rate near zero instead of its traditional target of 2% annual inflation to encourage consumer spending and investments and boost recovery. Federal Reserve officials have gone on the record saying there are no plans to raise interest rates until the inflation rate averages around 2% for an extended period.

For now, policymakers are unconcerned with April’s increase in inflation, claiming the numbers are higher because inflation reached significant lows at the onset of the COVID-19 pandemic and the shutdown of the U.S. economy. They indicate it is possible that inflation will be distorted for a few months because of the pandemic response.

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Yikes! Corn Prices Are Up Roughly 50% In 2021 As Americans Brace For Years Of Horrific Food Inflation

This article was originally published by Michael Snyder at The Economic Collapse Blog. 

PREPPING FOR THE UPCOMING GOVERNMENT-INDUCED FOOD SHORTAGES

It sure didn’t take long for the Joe Biden era to start resembling the Jimmy Carter era.  Prices are going up so fast that even the mainstream media can’t stop talking about it.  This has already become a major national crisis, and it should be exceedingly obvious to everyone that it is only going to get worse.

The Biden administration wants to borrow and spend trillions of more dollars on top of all the absurd spending that has already happened, and the Federal Reserve is going to continue to pump gigantic piles of fresh cash into the financial system.  Collectively, our leaders are literally committing economic malpractice, and if most Americans truly understood what was going on they would be out in the streets protesting against it.

Already, a lot of people out there are becoming extremely alarmed that their food bills are so high.  One of the things that is driving this is the price of corn.  Most Americans don’t eat a lot of canned corn or corn on the cob, but corn has become a key ingredient in literally thousands of other products in our grocery stores.  If you doubt this, just wander through a grocery store sometime and look for products with these ingredients

  • Corn flour, cornmeal. corn gluten, cornflakes, etc.
  • Cornstarch, also listed on labels as starch or vegetable starch
  • Corn oil
  • Corn syrup or high fructose corn syrup
  • Dextrins
  • Maltodextrins
  • Dextrose
  • Fructose or crystalline fructose
  • Hydrol, treacle
  • Ethanol
  • Free fatty acids
  • Maize
  • Zein
  • Sorbitol

When you know what to look for, pretty soon you start realizing that corn is in the majority of our processed foods.  They put it in bread, they put it in soda, they put it in baby formula, and food manufacturers are constantly coming up with new ways to stick it into even more products.

Needless to say, this is absolutely horrible for our health, but that is a topic for another article.

In this article, the point I am trying to make is that the price of corn is going to affect the price of most of the things that the average American buys at the grocery store, and at this point, the price of corn is up “roughly 50%” so far in 2021…

America’s biggest cash crop has rarely been more expensive. Corn prices have risen roughly 50% in 2021 and a bushel costs more than twice what it did a year ago.

Corn has been one of the sharpest risers in the broad rally in raw materials that is prompting companies to boost prices for goods and fueling concern among investors that inflation could hobble the post-pandemic economic recovery.

Here in the United States, most Americans will be able to absorb the price increases that are coming, but in other parts of the globe, a price shift of this magnitude could mean that millions of families will no longer have enough money to buy the food they need.

Of course, it isn’t just the price of corn that is going crazy.  As that same Wall Street Journal article noted, we are seeing wild inflation in many areas of the U.S. economy right now…

Lumber prices have shot to more than four times what is typical, pushing up home prices and obliterating renovation budgets. Copper, a cog of industry found throughout the home and in electronics, hit record prices Friday. Crude oil hasn’t cost so much since 2018 and soybeans are trading at their loftiest level since 2012.

Day after day, inflation is making headlines, and this is going to cause a lot of fear.  As a result, hordes of people will be rushing out to their local retail stores “to stock up”, and this will do a couple of things.

First of all, it will make inflation even worse.  When demand rises relative to supply, that pushes prices in an upward direction, and that is just basic economics.

Secondly, it will intensify our ongoing shortages.  As I detailed the other day, the shortages that we are experiencing now are worse than anything that we went through in 2020, and there will be more shortages in the months ahead.

And as if we weren’t already facing enough problems, one of the most important fuel pipelines in the U.S. was just shut down by a very sophisticated ransomware attack

One of the largest US fuel pipelines remained largely paralyzed Monday after a ransomware cyberattack forced the temporary shutdown of all operations late last week — an incident that laid bare vulnerabilities in the country’s aging energy infrastructure.

The victim of the attack, Colonial Pipeline is a company that transports more than 100 million gallons of gasoline and other fuel daily from Houston to the New York Harbor.

It is very interesting to note that some in the mainstream media are trying to link this attack to Russia.  Whether that is true or not, we all know where all of this is eventually heading.

These are such troubled times, but most Americans still don’t realize what we are facing.

Sending out big government checks made everyone feel good for a little while, but it came at a great cost.  Creating trillions of dollars out of thin air is absolutely destroying the value of our currency, and once the U.S. dollar is dead there will be no going back.

To me, we just hit a milestone that is extremely telling.  If you can believe it, the total value of all cryptocurrencies is now greater than the value of all U.S. currency currently in circulation

Cryptocurrency has hit a significant milestone: It’s now worth more than all US dollars currently in circulation.

Cryptocurrencies hit a valuation of $2 trillion on April 29, according to The Wall Street Journal. That’s about the same valuation as all US dollars in circulation. However, it has since hit as high as $2.25 trillion — and in the process actually exceeding dollars in circulation.

This is utter madness!

But this is what can happen when the Federal Reserve electronically pumps trillions upon trillions of new dollars into the financial system.

An inflationary collapse is in the process of unfolding right in front of our eyes, and I am certainly not the only one loudly warning about this.  Earlier today, I came across a piece that was authored by Dr. Don Boys

I am yelling fire because fire is raging. Mixing metaphors, the storm is not coming; it’s already here. America’s financial house of cards will fall, taking other nations with her. Thoughtful Conservatives must inform people of imminent danger because families will be disrupted, businesses will fail, couples will be divorced, and children will suffer immeasurably.

The economy has faltered, is failing, and will fall.

I see no way out of the coming collapse. Sometimes politicians make such a mess of things that there is no way to correct or solve the mess. It’s almost like being in a small boat on a raging sea, unsure how far you are from the coast you left and the distance to where you hope to dock. You keep going hoping to stay afloat; however, our “boat” is overwhelmed with accelerating debt.

For years we have been marching toward this sort of a disaster, but now that march has evolved into a full-on sprint.

Everything that the “economic alarmists” have been warning about is starting to happen, but this is just the beginning.

Much worse is still to come, and the fall of the U.S. economy is going to absolutely shock the entire globe.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions.  I encourage you to follow me on social media on FacebookTwitter, and Parler, and anyway that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post Yikes! Corn Prices Are Up Roughly 50% In 2021 As Americans Brace For Years Of Horrific Food Inflation first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Greg Mannarino: “Scapegoat Economics” & The Dark Secret We Are NOT Supposed To Know

Market analyst Greg Mannarino has been pretty spot on when discussing the planned destruction of the United States dollar and the takedown of the middle class. He says what is happening right now is “scapegoat economics” as the Federal Reserve creates an “inflation machine.”

Mannarino says that the recent pipeline attack was simply, a false flag.  It was done so the central banks can hide the inflation they have caused by creating a narrative.  They are drawing attention away from themselves and the government. The central banks will race to finish what they have started: to own it all. Their end game is for the banks to own the planet, including all of us.

It would be wise to watch the above video before YouTube removes it.  They don’t like it when people call out those in charge and their agenda.

“They [central banks] are also creating a slave society. This is an amazing set of dynamics that are in play right now,” says Mannarino.  We have repeatedly warned that the end game will be the permanent enslavement of making if we cannot rise up, stand together, and unite against the ruling class who thinks they own us.  We have to realize that centralized banking and the government itself is a slave system.

The New World Order “paradigm” is being rolled out right in front of our faces, and far too many still blame one side or other instead of condemning all oppression, right and left. But that’s because there’s a deep dark secret that is being kept from people, says Mannarino:

“You MUST pay attention to these things now and you really gotta focus on ‘scapegoat economics’. ‘Look here! Don’t look here!’ The Fed CANNOT be pointed out to the people. People out there, the masses, the dumbed-down freaks cannot be allowed to know the root cause of inflation and the fact that the Fed is deliberately creating it…you’re not allowed to know. So [the masses] have to be distracted as they always are.

It’s all being set up. I told you this was going on months ago, and expect MORE of these false flag events to occur to keep energy prices, crude oil, higher. It must be done to continue to brainwash the masses.” –Greg Mannarino

As I continue to say, please stay alert and stay aware.  That means watch the headlines, and use your own critical thinking and discernment. There is a big agenda in play right now and waking up to that fact can be difficult, but unless you want to be condemned and have your children condemned to a life of slavery, it’s necessary.

The post Greg Mannarino: “Scapegoat Economics” & The Dark Secret We Are NOT Supposed To Know first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Bank of America warns of HYPERINFLATION ‘at the very LEAST’

Top officials at the Federal Reserve are doing what they can to sugar coat what’s ahead for our economy, telling Americans we may hit a “transitory” period of inflation that will settle by 2022. But Bank of America is saying something different. The bank’s latest earnings call commentary warned “at the very least” transitory hyperinflation is ahead.

Watch the video clip below to hear Glenn Beck explain what this means for prices and for our economy.

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

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The Central Bank Digital Dollar Is Coming: Prepare For Totalitarian Domination

The United States nonprofit Digital Dollar Project said on Monday it will launch five pilot programs over the next 12 months to test the potential uses of a U.S. central bank digital currency.  This is a huge part of their plan: a fully centralized digital currency where freedom and privacy are nonexistent.

This is the first effort of its kind in the United States. If the ruling classes are successful in convincing the masses they need the CBDC (central bank digital currency) the best you can do is prepare for totalitarian enslavement.  Every transaction you make will be tracked and traced. Any time they decide you have to pay some taxes, they’ll just take it.  Want to speak out against the slavery that is government? Fine, they’ll cut off your digital wallet. It’s coming unless we wake up and quickly.

The private-sector pilots initially will be funded by Accenture Plc (ACN.N) and involve financial firms, retailers and NGOs, among others. The aim is to generate data that could help U.S. policymakers [the ruling class] develop a digital dollar. –Reuters

This beast system is getting a boost and they are going to make this sound utterly delightful. Sadly, some will willingly agree to be slaves to the banking cartel and ruling class.

“There are conferences and papers coming out every week around the world on CBDCs based on data from other countries,” said Christopher Giancarlo, former chair of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation. “What there is not, is any real data and testing from the United States to inform that debate. We’re seeking to generate that real-world data,” Giancarlo added.

David Treat, a senior managing director at Accenture, said CBDCs would exist alongside other forms of physical and electronic money, rather than replace them. But we’ve already seen a push to get rid of cash becasue it’s difficult to track and tax a cash transaction between two people.

Ready for a Cashless Society? WHO Says Contaminated Cash and Spread the Coronavirus

Control Agenda Moves Forward: Federal Reserve Is Pushing HARD For A Digital Dollar

Getting everyone on a digital dollar system would ensure that breaking away from the two tier society they are also fashioning right now would be impossible. Being free would be something that in a few generations, no one will ever talk about. It’s time to wake up to what’s going on.  They want us on this planet only if we agree to be slaves and give up everything including the most important thing: our free will.

Use your critical thinking. Does anyone honestly think central banks were set up for our intrest? Does anyone think that a CBDC fully controlled by the rulers of the planet will be good step for humanity? This is yet another puzzle piece to the overall New World Agenda that’s magically falling right into place. Coincidence?

The post The Central Bank Digital Dollar Is Coming: Prepare For Totalitarian Domination first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Why Your Grocery Bills Are Going Up (And Are Only Expected to Get Bigger)

This article was originally published by Hannah Cox at The Foundation for Economic Education. 

It’s official: food inflation has arrived. Food prices soared 3.9 percent in 2020, the Department of Agriculture recently reported.

Americans spent a lot of money on groceries over the past year—and it isn’t just because they were eating more meals at home. According to the Bureau of Labor Statistics, food prices jumped 3.9 percent in 2020, nearly triple the rate of inflation.

Unfortunately, this trend seems poised to continue. The US Department of Agriculture estimates grocery bills could increase by another 3 percent in 2021, while some experts are betting on even longer-term problems.

“I think food prices are going to continue to increase for probably a good year, year, and a half,” warns Phil Lempert, founder of SupermarketGuru.com.

Shoppers are already feeling the crunch. Long Island resident John Kermaj recently told NBC News, “We used to buy this stuff for $30. Now it’s $60.”

Diet staples like wheat, corn, soybeans, and meat are among the products seeing the sharpest price uptick. Meat shot up 5.5 percent last year, and prices for fruits like apples, strawberries, and citrus went up by 11.3 percent.

This is no small matter.

Before the pandemic, the number of Americans experiencing food insecurity had been steadily falling. That trend was reversed last year. Northwestern University researchers estimate that food insecurity doubled during this time—placing 23 percent of households in danger of going hungry. It is likely this problem will only worsen as the cost of food continues to grow.

So, what’s causing the spike? A perfect storm, really. Bad weatherstockpiling, increased demand from China, global shipping interruptions, and inflation caused by the extreme money printing by central banks all get honorable mentions. But a significant number of the factors to blame can be traced back to the government’s lockdowns and regulatory policies.

Meat processing plants were one of the industries hardest hit by the lockdowns. Many were forced to close for extended periods of time, and others invested in expensive new equipment and technology to reduce their in-person workforce. These costs were of course ultimately borne by the consumer, and the closures led to supply chain disruptions. Both made the price of meat go up.

Northwestern University researchers estimate that food insecurity doubled during this time—placing 23 percent of households in danger of going hungry.

These closures not only affected the meatpacking plants and their employees but those of many related businesses in the food processing industry as well. The lockdowns also impacted farmers, shipment and distribution facilities, companies that produce the containers and plastic needed to store the meat, and grocers. In a market, one government action can have a ripple effect across hundreds of other industries, and that’s certainly what happened here.

The coronavirus and lockdowns didn’t necessarily cause all of the problems in the meat industry, but they did exacerbate existing issues. The industry was already struggling under absurd government regulations that force farmers to waste good livestock and block them from selling directly to consumers. Combined with the lockdowns, these policies began to threaten our supply chain.

Congressman Thomas Massie called attention to this problem more than a year ago and warned it could lead to a meat shortage. The Kentucky Republican urged Congress to support his PRIME Act to repeal these regulations, but his warnings went unheeded.

Other producers in the agriculture sector have struggled to obtain the workers needed to ramp up production. Across the country, small businesses have been unable to attract Americans back to the workplace as many remain on increased unemployment benefits that pay more than work.

Esteemed economist Thomas Sowell famously said, “There are no solutions. There are only trade-offs.” This principle has certainly been put on display during the pandemic, as the government made many trade-offs in its attempts to mitigate the crisis.

There are no solutions. There are only trade-offs.

Ultimately, we know that many of their prescribed solutions—closing outdoor spaces, lockdowns, scrubbing surfaces with alcohol—were abject failures. But the trade-offs made in exchange for promises of increased security won’t be fading away anytime soon.

The current food price spikes, and the resulting food instability issues they have fueled, are only the latest in a long line of consequences Americans have suffered as a result of the government’s attempts at solutions in 2020.

Viruses are scary. But the surge in food insecurity is a reminder that all policies come with trade-offs—and that panic-fueled government interventions often only make a crisis worse.

WATCH: Freedom vs. Fear: Which Side Are YOU On?

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The National Debt Is Worse Than Advertised

Through the first six months of fiscal 2021, the US government ran a record $1.7 trillion budget deficit. And there is no end in sight to the borrowing and spending. Just last month, the national debt eclipsed $28 trillion for the first time. But it’s even worse than that.

A lot worse.

When you include unfunded liabilities such as Social Security and Medicare, that actual US debt stands at $123.11 trillion, according to the Financial State of the Union 2021 published by Truth in Accounting.

In order to pay off all of Uncle Sam’s liabilities, every taxpayer in the US would have to write a check for $796,000.

I don’t know about you, but I don’t have it.

The federal government has $5.95 trillion in assets and $129.06 trillion in liabilities. If it were a private company, the US government would be bankrupt.

Here’s a breakdown of Uncle Sam’s liabilities in broad categories.

  • Medicare benefits – $55.12 trillion
  • Social Security obligations – $41.2 trillion
  • Publicly held debt – $21.08 trillion.
  • Military and civilian retirement benefits $9.41 trillion
  • Other liabilities – $2.25 trillion

According to Truth in Accounting’s analysis, the US government’s financial situation has deteriorated over the last year. Based on the latest available audited financial reports, its financial condition worsened by $9.84 trillion in 2020.

Interestingly, the Treasury Department only includes $175.30 billion of Social Security and Medicare liabilities on the federal balance sheet; according to government documents, recipients do not have the right to benefits beyond the benefits currently being paid and laws to reduce or stop future benefits can be passed at any time. Truth in Accounting assumes no changes in the current Social Security or Medicare schemes. This is a pretty safe assumption considering these programs are generally considered the “third rail” of politics. In other words, politicians dare not touch them.

Truth in Accounting’s conclusion feels a lot like an understatement.

Because the federal government would need such a vast amount of money from taxpayers to cover this debt, it received an “F” grade for its financial condition.”

Can we go with an F-?

The Federal Reserve backstopping the bond market and monetizing the debt. The central bank buys US Treasuries on the open market with money created out of thin air (debt monetization). This creates artificial demand for bonds and keeps interest rates low. All of this new money gets injected into the economy, driving inflation higher. We see this playing out before our eyes as the Fed continues to expand the money supply by record amounts.

Last week, Jerome Powell acknowledged that the federal budget is on an “unsustainable trajectory.” But he insists that the current debt load is sustainable. “There’s no question of our ability to service and issue that debt for the foreseeable future,” Powell said.

Of course, that’s only true as long as the Fed keeps monetizing. And that could become problematic if inflation runs out of control. The only way to battle inflation is to tighten monetary policy. And the only way to feed the ravenous federal budget monster is to keep monetary policy loose.

What will Powell choose?

Of one thing we can be certain — the US government won’t suddenly stop spending money.

There is always an excuse to borrow and spend more. Today, it’s the economic emergency caused by the coronavirus. And when times are good, the politicians will tell us it’s time to “invest in our future.” There is never a time to “prioritize concern” about the budget deficits and paying down the national debt. It’s always “kick the can down the road,” as Powell is recommending now. That works fine – until you run out of road.

That road is looking mighty short.

The post The National Debt Is Worse Than Advertised first appeared on Tenth Amendment Center.

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Feds Run Biggest Half-Year Budget Deficit Ever

The Biden administration has continued the government spending spree of the Trump administration started and has even managed to speed it up. Never before has the federal government run a budget deficit this big through the first six months of a fiscal year.

The U.S. government ran a budget deficit of $659.59 billion in March, pushing the budget shortfall to a record $1.7 trillion through the first half of fiscal 2021, according to the Treasury Department’s Monthy Treasury Statement. The March budget deficit ranks as the third biggest monthly shortfall in U.S. history, driving Uncle Sam the biggest half-year deficit ever.

Prior to last year’s stimulus-fueled $3.13 trillion deficit, the US government had only run annual deficits over $1 trillion four times, all during the Great Recession. Uncle Sam is already on the fast track to $2 trillion with six months left in the fiscal year. The previous record deficit for the first six months of a fiscal year was $829 billion set back in 2011.

Uncle Sam spent nearly a trillion dollars in March. The $927.21 billion in outlays last month brought total fiscal 2021 spending to a staggering 3.41 trillion.

Meanwhile, Treasury receipts in March came in at just $267.61 billion. That was a 13 percent increase over last year but didn’t come close to covering the massive Trump/Biden spending spree.

On March 1, the U.S. national debt eclipsed $28 trillion for the first time. Currently, that represents $85,255 of debt for every American citizen.

According to the National Debt Clock, the debt to GDP ratio stands at 130.02 percent. Despite the lack of concern in the mainstream, debt has consequences. Studies have shown that a debt to GDP ratio of over 90 percent retards economic growth by about 30 percent. This throws cold water on the conventional “spend now, worry about the debt later” mantra, along with the frequent claim that “we can grow ourselves out of the debt” now popular on both sides of the aisle in D.C.

As financial analyst Peter Schiff put it in a tweet, all of this government comes at a price.

We didn’t get $659 billion worth of government spending for free. The public will pay the balance through the inflation tax. That means consumer prices are headed much higher.”

The inflation tax will hit us as the Federal Reserve monetizes this massive debt.  That means more bond purchases and more money printing.

The Federal Reserve makes all of this borrowing and spending possible by backstopping the bond market and monetizing the debt. It is the engine that powers the biggest, most powerful government in the history of the world. The central bank buys U.S. Treasuries on the open market with money created out of thin air (debt monetization). This creates artificial demand for bonds and keeps interest rates low. All of this new money gets injected into the economy, driving inflation higher. We see this playing out before our eyes as the Fed continues to expand the money supply by record amounts.

The Fed had worked itself between a rock and a hard place. It has to print trillions of dollars to monetize the massive deficits. But that is causing inflation expectations to run hot. That is putting upward pressure on interest rates. But you can’t have rising rates when your entire economy is built on debt. The only way the Fed can hold rates down is to buy more bonds, which means printing more money, which means even more inflation. You can see the vicious cycle. At some point, there is a fork in the road and the Fed will have to choose. Step up and address inflation and let rates rise, which will burst the stock market bubble and collapse the debt-based economy, or just keep printing money and eventually crash the dollar.

The politicians, pundits and central bankers tell us that now is not the time to worry about the massive budget deficits and the growing national debt. The government has to borrow and spend because America faces an economic crisis. But nobody worried about the borrowing and spending back in 2019 when Donald Trump was bragging about the greatest economy in history. The budget deficit in 2019 was just a hair under $1 trillion. So, if we don’t worry about the debt when the economy is bad and we don’t worry about the debt when the economy is “booming,” when exactly do we worry about the debt?

Currently, the average American doesn’t really feel the impact of federal spending. Taxes remain low (relatively speaking). The Treasury simply borrows the money and the central bank monetizes the debt. But borrowed money has to be paid back. You will pay the bill – whether through higher taxes down the road or the inflation tax inherent in the Fed’s debt-monetization scheme. And in reality – both.

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Food Prices Are Rising Aggressively, And Even The Corporate Media Is Admitting That It Is Only Going To Get Worse

This article was originally published by Michael Snyder at The Economic Collapse Blog

Food prices are outrageous now, but they are only going to go higher.  Earlier today, I came across an NBC News article entitled “Get ready for higher grocery bills for the rest of the year.” I thought that it was strange that a piece put out by the corporate media sounded like it could have come straight from my website because I have been sounding the alarm about higher food prices for quite some time.

Surprisingly, the NBC News article was generally right on point.  Thanks to a variety of factors, food prices have been rising aggressively, and that is going to continue for the foreseeable future.

According to the Labor Department, consumer prices overall were up 0.6 percent from February to March…

Consumer prices shot higher in March, given a boost by a strong economic recovery and year-over-year comparisons to a time when the Covid-19 pandemic was about to throttle the U.S. economy, the Labor Department reported Tuesday.

The consumer price index rose 0.6% from the previous month but 2.6% from the same period a year ago. The year-over-year gain is the highest since August 2018 and was well above the 1.7% recorded in February.

0.6 percent may not sound like that much, but if you multiply that figure by 12 months you get an annualized rate of  7.2 percent.

Of course the government has changed the way the inflation rate is calculated dozens of times over the years, and at this point everyone knows that the official number greatly understates what is really happening in the economy.

In fact, John Williams of shadowstats.com says that if the rate of inflation was still calculated the way that it was back in 1980, it would be over 10 percent right now.

In other words, we have now reached Jimmy Carter levels of inflation.

One of the places where we are really starting to see inflation show up is in food prices.  Here are just a few examples

Before the pandemic began, the national average for a pound of bacon in January 2020 was $4.72. By last month, that price had soared to $5.11, according to exclusive supermarket point of sale data from NielsenIQ. Ground beef is up $5.26 a pound from $5.02. Bread is up $2.66 a loaf from $2.44.

So why are food prices increasing like this?

Yahoo News recently posted an article that listed four explanations

1. Plummeting food production
2. Transportation tumult
3. More eating at home
4. Wild weather

Moving forward, the pandemic will continue to suppress global food production, commodity prices will likely keep climbing, and increasingly wild weather patterns will certainly cause even more damage to crops.

All of these factors are making it more expensive for food companies to operate, and as NBC News has noted, food companies are starting to pass along those costs to consumers…

Issues like higher gas prices, increasing transport costs that get passed on to consumers, especially for items like bread, are only going up as driving increases faster than oil production. So grocery prices are likely to remain on the higher end of estimates for at least the rest of the year, Olvera said. Producers may eventually increase their output in order to capture the heightened demand, but that won’t happen until toward the end of this year, Olvera said.

Of course, it isn’t just the United States that is wrestling with these problems.

Food prices are actually rising far more rapidly in much of the rest of the world, and we recently learned that global food prices spiked for a tenth month in a row during March…

Global food commodity prices rose in March, marking their tenth consecutive monthly increase, with quotations for vegetable oils and dairy products leading the rise, the Food and Agriculture Organization of the United Nations (FAO) reported today.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 118.5 points in March, 2.1 percent higher than in February and reaching its highest level since June 2014.

Those at the very bottom of the economic food chain are being hurt the most by rising food prices.

We have already started to see food riots in some areas, and one relief organization is warning that millions of people in East Africa are now on the verge of starvation

Over 7 million people across six East African countries are at the cusp of starvation as communities have faced existential threats from violence, flooding, the pandemic and locust infestation, the evangelical humanitarian organization World Vision has warned.

Needless to say, all of these developments are perfectly consistent with the warnings that I issued in Lost Prophecies Of The Future Of America.

Even during the best of years, we really struggle to feed the entire planet, and 2021 is definitely not going to be a great year for global food production.

The good news is that there is still plenty of food in our supermarkets right now, and that means that we have a window of opportunity.

I know that food prices may seem ridiculous, but they aren’t ever going to be any lower than they are right now.

I would encourage you to use this window of opportunity to stock up at these relatively low prices, because the price increases are only going to become even more painful as our leaders continue to flood the system with more cash.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions.  I encourage you to follow me on social media on FacebookTwitter, and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

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US consumer prices jump by most in nearly 9 years; gas and food costs continue to rise

The U.S. Bureau of Labor Statistics released the consumer price index for March, which surged 0.6% from February. The CPI jumped 2.6% compared to the same period from a year ago, which is the largest monthly gain since August 2012. Last February saw a 1.7% increase.

Fueling the rising costs is the mounting cost of gasoline. Gas prices spiked 9.1% in March, which accounted for nearly half of the seasonally adjusted increase in the all items index. The natural gas index rose to 5% in March. Overall, energy prices have increased 13.2% in the last 12 months, including gas rising sharply at 22%.

Food prices edged up 0.1% last month, and are up 3.5% since last year. The cost of food consumed at and away from home also rose 0.1%.

NBC News highlighted some food items that have increased since the COVID-19 pandemic.

“Before the pandemic began, the national average for a pound of bacon in January 2020 was $4.72. By last month, the price had soared to $5.11, according to exclusive supermarket point of sale data from NielsenIQ,” the report stated. “Ground beef is up to $5.26 a pound, from $5.02. Bread is up to $2.66 a loaf, from $2.44.”

“Supply chains are largely inefficient at this time,” Isaac Olvera, agricultural economist for ArrowStream, a supply chain management software company, told NBC News. “We’re still dealing with fallout from the pandemic.”

World food prices rose for the tenth-consecutive month in March, rising to their highest level since June of 2014.

“The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 118.5 points last month versus a slightly revised 116.1 in February,” Reuters reported.

The index for all items other than food and energy rose 0.3%. Used cars and trucks were up 0.5% in March, and jumped 9.5% since last year at the same time. New cars are up 1.5% since March 2020.

“The largest gain in seven months in the so-called core CPI was driven by a rise in rents as well as hotel and motel accommodation prices, which rebounded 4.4% after falling 2.7% in February,” Reuters reported.

Car and truck rental prices rose 11.7% from the prior month, and the year-over-year increase was the largest on record.

Inflation-adjusted hourly earnings increased 1.5% in March from last year, the smallest gain in more than a year, according to Bloomberg.

While there are concerns about inflation, Federal Reserve policymakers estimate that the increase will be temporary.

“The annual inflation figure surged to 2.6%, a figure that was distorted by a pandemic-related decline in prices in March 2020,” Bloomberg reported. “That effect will begin to fade within several months, helping explain why Federal Reserve policymakers see current price pressures as temporary rather than something more dangerous to the economy.”

“April likely also will show a sharp rise, but then the numbers are supposed to decrease as the worst months of the shutdown fall out of the data comparisons,” according to CNBC.

Federal Reserve Chairman Jerome Powell recently told “60 Minutes” that “it’s highly unlikely” that there would be any interest rate hikes this year.

“So what we’ve said is that we’d consider raising rates when the labor market recovery is essentially complete and we’re back to maximum employment and inflation is back to our 2% goal and is on track to move above 2% for some time,” Powell said on Sunday. “It’ll be a while until we get to that place. But that’s the guidance that we’ve offered to the public of the conditions we’d want to see before we start raising interest rates.”

“We can afford to wait to see actual inflation appear before we raise interest rates,” he added. “Now, we don’t want inflation to go up materially above 2% and go back to, you know, the bad, old inflation days that we had when you and I were in college back a long time ago. But at the same time, we do have the ability to wait to see real inflation. And that’s what we plan on doing.”

“When we get to that place and inflation is expected to run moderately above 2% for some time, then we’ll look at raising interest rates,” Powell said. “And that day will come.”

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What Could Go Awry?

This article was originally published by Charles Hugh Smith at Of Two Minds Blog

All of which sounds very pretty indeed, but it does raise a question: can risk really be destroyed, or can it only be transferred? And if it can only be transferred, then what’s it been transferred to?

What a remarkable moment in time: every asset is lofting higher, with no limits in sight. The path ahead is already well-scouted: the U.S. economy will add a million jobs a month until the cows come home, Covid will continue fading until it basically disappears as an issue, the dollar and volatility will continue their death march toward zero (good for risk assets), oil and commodities are entering a new super-cycle of growth, as are stocks, bonds (now that pesky yields are falling), cryptocurrencies and housing– all are entering super-cycles of high growth and essentially limitless expansion of speculative gains.

It’s dreadful having a skeptical default setting, but there you have it: what could go awry? Seemingly nothing. Everything’s accounted for and for anything out of the blue, we have the trusty Fed Put, the Federal Reserve’s implicit promise to crush any spot of bother with a wall of freshly issued dollars and near-infinite credit.

Look on our works, ye Mighty, and despair, for we are the greatest power in the Universe! Resistance is futile, and so on. Indeed.

Since we’re in an era in which speculators in any asset can’t possibly lose, it’s no surprise that punters are borrowing buckets of cash to increase their stake in the casinos can’t lose gaming tables. The chart of margin debt offers an instructive history of can’t lose speculative borrowing.

Margin debt is money borrowed from brokers against the collateral of stocks, mutual funds, ETFs, etc. The more your portfolio rises, the more money you can borrow on the margin because your collateral is rising.

Let’s start with the sad, pathetic pre-speculative Stone Age of the 1950s, 60s and 70s, dreary decades of rapid economic expansion and higher wages but dismally low levels of margin debt. The poor cave-creatures back then made little use of margin debt because their lives were an unending misery of risk. Back in that Dark Age, stock market participants could actually lose money–oh the horror!

The Black Death of risk roamed the land unhindered until the all-mighty Federal Reserve established its impregnable fortress of the Fed Put: every market decline will be crushed, and speculators will be rewarded.

And so the glorious age of Speculative Mania began. The rules to guaranteed gain were simple:

1. Buy every dip, as the Fed Put would soon reverse any decline.

2. Borrow as much money as possible and throw it onto the gambling tables because the larger your bets, the greater your gains.

With risk vanquished, everyone who embraced speculation became a winner–a big winner. Only chumps didn’t buy GameStop calls and reap a quick $250,000 or more in a few weeks.

And so margin debt soared and speculators prospered. All was right with the world. But then inexplicably, some sort of glitch occurred and the dot-com euphoria popped and stocks actually dropped. Punters received the dreaded margin call for cash or they had to liquidate their positions to reduce their margin debt.

Stocks soon recovered, and easy-to-borrow money flooded into housing and stocks, lifting markets to new euphoric heights. Another inexplicable glitch occurred, however, and that bubble popped, too, with extremely awkward consequences–the Global Financial Meltdown. But after the Fed tossed around a few tens of trillions of dollars in backstops, guarantees, mortgage purchases, bond-buying, lines of credit for any bank that faced losses, and so on, that strange interlude ended and margin debt and speculative gains continued their march to new heights of glory and guaranteed gains.

This brings us to the present unprecedented levels of margin debt and can’t lose speculative mania. Everyone is supremely confident that inexplicable glitches are now impossible, and nothing can possibly go awry on the path to new super-cycles of growth and speculative gains.

All of which sounds very pretty indeed, but it does raise a question: can risk really be destroyed, or can it only be transferred? And if it can only be transferred, then what’s it been transferred to? The only possible answer appears to be the financial system itself. But never mind skeptical questions, the Fed Put is now the greatest power in the Universe and so speculative gains are guaranteed, forever and ever.

“Look on my works, ye Mighty, and despair!”
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.

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WEF Warns Of Cyber Attack Leading To Systemic Collapse Of The Global Financial System

This article was originally published by Whitney Webb at The Last American Vagabond. 

A report published last year by the WEF-Carnegie Cyber Policy Initiative calls for the merging of Wall Street banks, their regulators, and intelligence agencies as necessary to confront an allegedly imminent cyber-attack that will collapse the existing financial system.

In November 2020, the World Economic Forum (WEF) and Carnegie Endowment for International Peace co-produced a report that warned that the global financial system was increasingly vulnerable to cyber-attacks. Advisors to the group that produced the report included representatives from the Federal Reserve, the Bank of England, the International Monetary Fund, Wall Street giants likes JP Morgan Chase, and Silicon Valley behemoths like Amazon.

The ominous report was published just months after the World Economic Forum had conducted a simulation of that very event – a cyberattack that brings the global financial system to its knees – in partnership with Russia’s largest bank, which is due to jumpstart that country’s economic “digital transformation” with the launch of its own central bank-backed cryptocurrency.

More recently, last Tuesday, the largest information sharing organization of the financial industry, whose known members include Bank of America, Wells Fargo, and CitiGroup, have again warned that nation-state hackers and cybercriminals were poised to work together to attack the global financial system in the short term. The CEO of this organization, known as the Financial Services Information Sharing and Analysis Center (FS-ISAC), had previously advised the WEF-Carnegie report that had warned much the same.

Such coordinated simulations and warnings from those who dominate the current, ailing financial system are an obvious causes for concern, particularly given that the World Economic Forum is well-known for its Event 201 simulation about a global coronavirus pandemic that took place just months prior to the COVID-19 crisis.

The COVID-19 crisis has since been cited as the main justification for accelerating the “digital transformation” of the financial and other sectors that the Forum and its partners have promoted for years. Their latest prediction of a doomsday event, a cyber attack that stops the current financial system in its tracks and instigates its systemic collapse, would offer the final yet necessary step for the Forum’s desired outcome of this widespread shift to digital currency and the increased global governance of the international economy.

Given that experts have been warning since the last global financial crisis that the collapse of the entire system was inevitable due to central bank mismanagement and rampant Wall Street corruption, a cyber attack would also provide the perfect scenario for dismantling the current, failing system as it would absolve central banks and corrupt financial institutions of any responsibility. It would also provide a justification for incredibly troubling policies promoted by the WEF-Carnegie report, such as a greater fusion of intelligence agencies and banks in order to better “protect” critical financial infrastructure.

Considering the precedent of the WEF’s past simulations and reports with the COVID-19 crisis, it is well worth examining the simulations, warnings and the policies promoted by these powerful organizations. The remainder of this report will examine the WEF-Carnegie report from November 2020, while a follow-up report will focus on the more recent FS-ISAC report published last week. The WEF simulation of a cyber attack on the global financial system, Cyber Polygon 2020, was covered in detail by Unlimited Hangout in a previous report.

The WEF-Carnegie Cyber Policy Initiative

The Carnegie Endowment for International Peace, is one of the most influential foreign policy think tanks in the United States, with close and persistent ties to the US State Department, former Presidents, corporate America, and American oligarch clans like the Pritzkers of Hyatt hotels. Current trustees of the endowment include executives from Bank of America and CitiGroup as well as other influential financial institutions.

In 2019, the same year as Event 201, the Endowment launched its Cyber Policy Initiative with the goal of producing an “International Strategy for Cybersecurity and the Global Financial System 2021-2024.” That strategy was released just months ago, in November 2020, and, according to the Endowment, was authored by “leading experts in governments, central banks, industry, and the technical community” in order to provide a “longer-term international cybersecurity strategy” specifically for the financial system.

The initiative is an outgrowth of past efforts of the Carnegie Endowment to promote the fusion of financial authorities, the financial industry, law enforcement, and national security agencies, which is both a major recommendation of the November 2020 report and a conclusion of a 2019 “high-level roundtable” between the Endowment, the IMF and central bank governors. The Endowment had also partnered with the IMF, SWIFT, Standard Chartered, and FS-ISAC to create a “cyber resilience capacity-building toolbox” for financial institutions in 2019. That same year, the Endowment also began tracking “the evolution of the cyber threat landscape and incidents involving financial institutions” in collaboration with BAE Systems, the UK’s largest weapons manufacturer. Per the Endowment, this collaboration continues into the present.

In January 2020, representatives of the Carnegie Endowment presented their Cyber Policy Initiative at the annual meeting of the World Economic Forum, after which the Forum officially partnered with the Endowment on the initiative.

Advisors to the now joint WEF-Carnegie project include representatives of central banks like the US Federal Reserve and the European Central Bank; some of Wall Street’s most infamous banks like Bank of America and JP Morgan Chase; law enforcement organizations such as INTERPOL and the US Secret Service; corporate giants like Amazon and Accenture; and global financial institutions like the International Monetary Fund (IMF) and SWIFT. Other notable advisors include the managing director and head of the WEF’s Centre for Cybersecurity, Jeremy Jurgens, who was also a key player in the Cyber Polygon simulation, and Steve Silberstein, the CEO of the Financial Services Information Sharing and Analysis Center (FS-ISAC).

“Not a Question of If but When

The Cyber Policy Initiative’s November 2020 report is officially titled “International Strategy to Better Protect the Financial System.” It begins by noting that the global financial system, like many other systems, are “going through unprecedented digital transformation, which is being accelerated by the coronavirus pandemic.”

It then warns that:

“Malicious actors are taking advantage of this digital transformation and pose a growing threat to the global financial system, financial stability, and confidence in the integrity of the financial system. Malign actors are using cyber capabilities to steal from, disrupt, or otherwise threaten financial institutions, investors and the public. These actors include not only increasingly daring criminals, but also states and state-sponsored attackers.”

Followed by this warning of “malign actors”, the report notes that “increasingly concerned, key voices are sounding the alarm.” It notes that Christine Lagarde of the European Central Bank and formerly of the IMF warned in February 2020 that “a cyber attack could trigger a serious financial crisis.” A year prior, at the WEF’s annual meeting, the head of Japan’s central bank predicted that “cybersecurity could become the financial system’s most serious risk in the near future.” It also notes that in 2019, Jamie Dimon of JP Morgan Chase similarly labeled cyber attacks as possibly “the biggest threat to the US financial system.”

Not long after Lagarde’s warning, in April 2020, the Financial Stability Board asserted that “cyber incidents pose a threat to the stability of the global financial system” and that “a major cyber incident, if not properly contained, could seriously disrupt financial systems, including critical financial infrastructure, leading to broader financial stability implications.”

The WEF-Carnegie report authors add to these concerns that “the exploitation of cyber vulnerabilities could cause losses to investors and the general public” and lead to significant damage to public trust and confidence in the current financial system. It also notes, aside from affecting the general public in a significant way, this threat would impact both high-income countries and low to lower-middle-income countries, meaning its impact on the masses will be global in scope.

The report then ominously concludes that “one thing is clear: it is not a question of if a major incident will happen, but when.

Ensuring control of the narrative

Another section of the report details recommendations for controlling the narrative in the event such a crippling cyberattack takes place. The report specifically recommends that “financial authorities and industry should ensure they are properly prepared for influence operations and hybrid attacks that combine influence operations with malicious hacking activity” and that they “apply lessons learned from influence operations targeting electoral processes to potential attacks on financial institutions.”

It goes on to recommend that “major financial services firms, central banks, and other financial supervisory authorities”, representatives of which advised the WEF-Carnegie report, “identify a single point of contact within each organization to engage social media platforms for crisis management.”

The report’s authors argue that “in the event of a crisis,” such as a devastating cyberattack on the global banking system, “social media companies should swiftly amplify communications by central banks” so that central banks may “debunk fake information” and “calm the markets.” It also states that “financial authorities, financial services firms and tech companies [presumably including social media companies] should develop clear communication and response plan focused on being able to react swiftly.” Notably, both Facebook and Twitter are listed in the report’s appendix as “industry stakeholders” that have “engaged” with the WEF-Carnegie initiative.

The report also asserts that premeditated coordination for such a crisis between banks and social media companies needs to take place so that both parties may “determine what severity of crisis would necessitate amplified communication.” The report also calls for social media companies to work with central banks to “develop escalation paths similar to those developed in the wake of the past election interference, as seen in the United States and Europe.”

Of course, those “escalation paths” involved wide-ranging social media censorship. The report seems to acknowledge this when it adds that “quick coordination with social media platforms is necessary to organize content takedowns.” Thus, the report is calling for central banks to collude with social media platforms to plan out censorship efforts that would be enacted if a sufficiently severe crisis occurs in financial markets.

As far as “influence operations” go, the report divides these into two categories; those that target individual firms and those that target markets overall. Regarding the first category, the report states that “organized actors will spread fraudulent rumors to manipulate stock prices and generate profit based on how much the price of the stock was artificially moved.” It then adds that, in these influence operations, “firms and lobbyists use astroturfing campaigns, which create a false appearance of grassroots support, to tarnish the value of a competing brand or attempt to sway policymaking decisions by abusing calls for online public comments.” The similarities between this latter statement and the Wall Street Bets phenomenon of January 2021 are obvious.

Regarding the second category of “influence operations,” the report defines these operations as “likely to be carried out by a politically motivated actor like a terrorist group or even a nation-state.” It adds that “this type of influence operation may directly target the financial system to manipulate markets, for example, by spreading rumors about market-moving decisions by central banks” as well as spreading “false information that does not directly reference financial markets but that causes financial markets to react.”

Given that the report states that the first category of influence operation poses little systemic risk while the second “may pose a systemic risk”, it seems more likely that the event being predicted by the WEF-Carnegie report would involve claims of the latter by a “terrorist group” or potentially a nation-state. Notably, the report mentions North Korea as a likely nation-state offender on several occasions. It also dwells on the likelihood that synthetic media or “deep fakes” would be part of this system-devastating event in emerging economies and/or in high-income countries experiencing a financial crisis.

A separate June 2020 report from the WEF-Carnegie initiative was published specifically on deep fakes and the financial system, noting that such attacks would likely transpire during a larger financial crisis to “amplify” damaging narratives or “simulate grassroots consumer backlash against a targeted brand.” It adds that “companies, financial institutions and government regulators facing public relations crises are especially vulnerable to deep fakes and synthetic media.”

In light of these statements, it is worth pointing out that bad actors within the current system could exploit these scenarios and theories to paint actual grassroots backlash against a bank or corporation as being a synthetic “influence operation” perpetrated by “cybercriminals” or a nation-state. Considering that the WEF-Carnegie report references a scenario analogous to the Wall Street Bets situation in January 2021, a banker-led effort to falsely label a future grassroots backlash as instead being synthetic and the fault of a “terrorist group” or nation-state should not be ruled out.

“Reducing Fragmentation”: Merging Banks with their Regulators and Intelligence Agencies

Given the inevitability of this destructive event predicted by the report’s authors, it is important to focus in on the solutions proposed in the WEF-Carnegie report as they will become immediately relevant if this event, as predicted by the WEF and Carnegie Endowment, does come to pass.

Some of the solutions proposed are to be expected from a WEF-linked policy document, such as the calls for increased public-private partnerships and greater coordination among regional and international organizations as well as increased coordination between national governments.

However, the main “solution” at the heart of this report, and also at the heart of the WEF-Carnegie initiative’s other endeavors, is a call to fuse corporate banks, the financial authorities that essentially oversee them, tech companies, and the national security state.

The report’s authors first argue that the main vulnerability of the global financial system at present is “the current fragmentation among stakeholders and initiatives” and that mitigating this threat to the global system lies in reducing that “fragmentation.” The report argues that the way to resolve the issue requires massive re-organization of all “stakeholders” via increased global coordination. The report notes that the “disconnect between the finance, the national security, and the diplomatic communities is particularly pronounced” and calls for much closer interaction between the three.

It then states that:

“This requires countries not only to better organize themselves domestically but also to strengthen international cooperation to defend against, investigate, prosecute and ideally prevent future attacks. This implies that the financial sector and financial authorities must regularly interact with law enforcement and other national security agencies in unprecedented ways, both domestically and internationally.”

Some examples of these “unprecedented interactions” between banks and the national security state are included in the report’s recommendations. For instance, it argues that “governments should use the unique capabilities of their national security communities to help protect FMIs [financial market infrastructures] and critical trading systems.” It also calls for “national security agencies [to] consult critical cloud service providers [like WEF-Carnegie initiative partner Amazon Web Services] to determine how intelligence collection could be used to help identify and monitor potential significant threat actors and develop a mechanism to share information about imminent threats” with tech companies.

The report also states that “the financial industry should throw its weight behind efforts to tackle cybercrime more effectively, for example by increasing its participation in law enforcement efforts.”

On that last point, there are indications this has already begun. For instance, Bank of America, the second-largest bank in the US and part of the WEF-Carnegie Initiative and FS-ISAC, was reported to have “actively but secretly engaged” with US law enforcement agencies in the hunt for “political extremists” following the January 6th events at Capitol Hill. In doing so, Bank of America shared private information with the federal government without the knowledge or consent of its customers, leading critics to accuse the bank of “effectively acting as an intelligence agency.”

Yet, arguably the most troublingly part of the report is its call to unite the national security apparatus and the finance industry first, and then use that as a model to do the same with other sectors of the economy. It states that “protecting the international financial system can be a model for other sectors,” adding that “focusing on the financial sector provides a starting point and could pave the way to better protect other sectors in the future.”

Were all the sectors of the economy to also fuse with the national security state, it would inevitably create a reality where there is no part of daily human life that is not ultimately controlled by these two already very powerful entities. This is a clear recipe for techno-fascism on a global scale. As this WEF-Carnegie report makes clear, the roadmap regarding how to cook up such a nightmare has already been charted out in coordination with the very institutions, banks, and governments that currently control the global financial system.

Not only that but – as pointed out in Unlimited Hangout‘s article on Cyber Polygon – the World Economic Forum and many of its partners have a vested interest in the systemic collapse of the current financial system. In addition, many central banks have recently backed new digital currency systems that can only achieve rapid, mass adoption if the existing system collapses.

Given that these systems are set to be integrated with biometric IDs and so-called “vaccine passports” through the WEF and Big Tech-backed Vaccine Credential initiative, it is worth considering the timing of the expected launch of such systems in determining when this predicted and the allegedly inevitable event is likely to occur.

With this new financial system so deeply inter-connected to these “credential” efforts, this cyberattack on the financial sector would likely take place at a time when it would best facilitate the adoption of the new economic system and its integration into credential systems currently being promoted as a “way out” of COVID-19-related restrictions.

The post WEF Warns Of Cyber Attack Leading To Systemic Collapse Of The Global Financial System first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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U.S. Money Supply Continues to Increase at Record Pace as Federal Reserve Backstops Government Spending

The federal government continues to borrow and spend at a staggering rate. On March 1, the national debt pushed above $28 trillion for the first time. This rate of borrowing wouldn’t be possible without the Federal Reserve monetizing the debt through quantitative easing. In practice, the central bank buys U.S. Treasuries on the open market, creating artificial demand for U.S. bonds. The Fed pays for these Treasuries with money created out of thin air that then gets injected into the economy.

Quantitative easing has continued over the last year at a record pace, and this is reflected in the growth of the U.S. money supply.  Money supply growth hit another all-time high in February as the Federal Reserve continues to churn out dollars and inject them into the economy.

As measured by the True Money Supply Measure (TMS), the money supply grew by 39.1 percent year-on-year. That was up slightly from January’s record growth of 38.7 percent.

To put the growth in money supply into some historic perspective, the rate in February 2020 was a mere 7.3 percent, which was a healthy increase from the under 2 percent growth we were seeing in 2019.

February marked the eleventh month of remarkably high money supply growth in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.

Money supply growth also broke a record as measured by M2. By the more traditional measure, the money supply grew 27.0 percent. That compares to January’s growth rate of 25.9 percent. M2 grew 6.8 percent during February of last year.

The “true” or Rothbard-Salerno money supply measure (TMS)—is the metric developed by economists Murray Rothbard and Joseph Salerno, and is designed to provide a better measure of money supply fluctuations than M2. This measure of the money supply differs from M2 in that it includes Treasury Department deposits at the Fed (and excludes short-time deposits, traveler’s checks, and retail money funds).

Historically, the growth in the money supply has never been higher with the 1970s being the only period that comes close.

Ryan McMaken at the Mises Institute says the growth in the money supply won’t likely slow anytime soon.

It appears that now the United States is nearly a year into an extended economic crisis, with around 1 million new jobless claims each week from March until mid-September. Claims have remained above 600,000 every week since. Moreover, more than 3.8 million unemployed workers are currently collecting standard unemployment benefits, and total unemployment claims have failed to fall back to non-recessionary levels, even a year after lockdowns began. More than seven million additional unemployed are collecting “Pandemic Emergency Unemployment Compensation” as of February 27.

“The central bank continues to engage in a wide variety of unprecedented efforts to ‘stimulate’ the economy and provide income to unemployed workers and to provide liquidity to financial institutions. Moreover, as government revenues have fallen, Congress has turned to unprecedented amounts of borrowing. But in order to keep interest rates low, the Fed has been buying up trillions of dollars in assets—including government debt. This has fueled new money creation.”

You might be tempted to say, “So what?” This is just government number-crunching. It really has no effect on me.

But it does.

By definition, an increase in the money supply is inflation. And inflation is a hidden tax on every American.

As the Fed creates more and more dollars, the dollars that you have in your wallet and in your bank account become worth less and less. Inflation particularly impacts the poor, those on fixed incomes, and people trying to save. We see the effects of inflation in rising prices. While the powers that be insist inflation isn’t a problem, it relentlessly chips away at your purchasing power. You know this if you’ve been to the grocery store or gas station recently.

The level of inflation we’re seeing today (remember, money creation is by definition inflation) poses a grave danger to the economy. It could ultimately result in hyperinflation. The U.S. has escaped the fate of Zimbabwe and Venezuela so far, but just because price inflation hasn’t gotten out of control yet doesn’t mean it won’t.

Financial analyst Peter Schiff warned months ago that all of the people who think this can go on forever are in for a rude awakening. Things that can’t go on forever don’t.

Just because we’ve gotten away with it for this long doesn’t mean we’re going to get away with it forever. … I think we’re very, very close to a major collapse of the dollar, a major breakout in the price of gold, to a breakdown in the bond market. And it isn’t going to happen overnight. It’s going to sneak up on people when they least expect it. … It’s not a crisis until it becomes a crisis. And then it becomes a crisis very, very quickly.

The Federal Reserve is the engine that runs the biggest most powerful government in the history of the world. Without the central bank monetizing the debt, the federal government would find it impossible to continue its massive warfare and welfare state.

Money is power and the Federal Reserve serves as an unlimited spigot pumping dollars into the system, enabling the biggest government in the history of the world to keep on truckin’. Without the Fed, there would be no foreign wars. There would be no massive, unsustainable social programs. There would be no police state. There would be no corporate welfare programs. The federal government would truly be limited.

If you want to end unconstitutional, overreaching federal power — end the Fed.

The post U.S. Money Supply Continues to Increase at Record Pace as Federal Reserve Backstops Government Spending first appeared on Tenth Amendment Center.

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POWELL IS EITHER DEAD WRONG OR A GENIUS!

This article was contributed by Portfolio Wealth Global. 

For months now, the theme has been that the economy is heating up.

If you free-search the term “Overheated Economy,” tons of articles, showing packed malls and fully-booked resorts appear.

The notion that bond yields are going to keep rising and that the FED must tighten soon is flawed in the eyes of FED Chair Powell.

If he’s wrong, the gloom-and-doom crowd believes inflation will get out of hand.

I want to show you Powell’s arguments that inflation will not rise above the 2.2%-2.4%, where the FED wants it to be for the next few years, and then I’ll show you where Powell could be wrong.

WHY DISINFLATION IS LIKELY

Disinflation doesn’t mean deflation. It means that inflationary expectations aren’t met.

It means that deficit spending and unsecured government debts are not going to cause a worst-case scenario, despite the in-your-face emotional rants of people who despise them.

Here’s why Powell believes disinflation (2.2%-2.4% long term) is more likely:

  1. Supply Chain Congestion: This is a big one. His reply is that any supply chain matters are fleeting and will be resolved. I agree. The capacity to manufacture in today’s world is nearly inexhaustible.
  2. Technological Boom: A crucial point is that breakthroughs in technology are making our lives much more affordable.

If I think about twenty years ago when people wanted to chat with a friend of theirs, while riding the bus, the SMS technology was expensive!

A text message used to cost a fortune. If I tried to live the same life I did twenty years ago, my life would be 50% cheaper than it is right now, so technology is driving prices down.

  1. Mature Economy: No robust economy with a long-standing currency system has ever suffered from crazy inflation.

It is true that all fiat currencies in history have gone to zero, but it’s also misleading since the population had ample time to exchange the old currency for the new one before the old expired into nothingness.

  1. Competitive Global Economy: In the 1970s, America was the clear dominator and no one else was even close. Today, the ability to produce and manufacture is uncanny and before companies raise prices, there better be a very good reason for it.
  2. Phillips Curve Theory Failed: In the last few years, we saw unemployment levels in the U.S. go down so much, yet inflation never became an issue. The jobs market was so tight that people were quitting left and right and companies still didn’t raise wages by that much, since they looked outside the U.S. for talent.

Courtesy: Zerohedge.com

Bonds have clearly been a horrible asset to hold in 2021, but with the 10-year bond dishing out 1.714%, as I write this, get inside the head of a pension fund manager, with billions to deploy and a mandate that he must hold government bonds.

He looks at the available supply of bonds and sees that in Europe, every government will borrow from you, but none of them will pay anywhere near what Washington will and some might even charge you interest!

Inflation might not become a pressing issue, so don’t bank your livelihood on hyperinflation.

Instead, take baby steps and do what’s right for you today, with the available information at your disposal, not with some theory that 51 years after we’ve gone on the fiat currency system, suddenly everyone will treat it like a house of cards.

It might not happen…

The post POWELL IS EITHER DEAD WRONG OR A GENIUS! first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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NO RATE HIKES. GOT IT?

This article was contributed by Future Money Trends. 

One of Future Money Trends’ proudest moments in our newsletter’s history is covering the bullish case of Bitcoin when its price was $13/coin!

It’s been nearly nine years since, and Bitcoin is more relevant and important today than it ever was before.

Its technological adoption by the international community is now a thing of art.

Hype or not and government regulation or not, by this time in 2023, you’ll be seeing Bitcoin ATMs all around you and thousands of businesses accepting the cryptocurrency.

If anything can ever hope to materially change the currency ballgame and the dollar hegemony, it looks like Bitcoin would be it. Having said that, for Bitcoin to reach its reserve role will probably take 15-20 years to develop.

For now, the dollar is what we’re stuck with, unless you prefer one of the other fiat currencies…

 

Courtesy: Zerohedge.com

The global economy had plenty of chances to reinstitute gold as some sort of foundational part of its currency strategy. It has chosen not to do so, and there does not seem to be any strong political, academic, economic, financial, or regulatory will to advance any failsafe that includes it.

If you think about it, letting gold trade freely is actually in our best interest!

I like it when gold trades on the open market since I have an exact system for when to accumulate more ounces:

  1. When gold comprises less than 5% of my net worth. That’s the most important rule of thumb (asset allocation balancing)
  2. When its price falls by 15% or more (buying the dip).
  3. When real interest rates are negative (a hedge against the cost of holding cash)
  4. When my allocation towards stocks is excessive (a hedge against expensive markets)

Courtesy: Zerohedge.com

American consumerism is just not what it used to be!

The millennials saw the unfortunate problems endured by their parents in the 2008 Great Financial Crisis and they’re much more conservative in general.

They are even minimalists.

This fear of an overheated economy is really laughable.

The FED is not going to raise rates with unemployment rates for Asians at 6%, Hispanics at 7.9%, blacks at 9.6%, and whites at 5.4%!

Secondly, there are an estimated 1.6M job seekers who are actively looking and aren’t counted in the official numbers because of the way they are reported.

As you can see from the survey above, most Americans plan on saving their stimulus checks or paying down debt (80% of participants).

Courtesy: Zerohedge

Now, with the euphoria stage out of the way and options traders vanishing from the scene, if the CPI data doesn’t confirm a real threat of inflation (data comes out mid-April), we expect tech to continue leading for years to come.

Don’t be surprised to see rates continue to climb, but as we see it, the 85% rally in yields since the beginning of 2021 is overdone.

Gold has greatly suffered from this bond bear market in 2021. We believe that April might be the best time since June 2019 and March 2020 to own mining equities!

We’ll update on our highest-conviction ideas imminently!

The post NO RATE HIKES. GOT IT? first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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BIDEN FULLY DELETES TRUMP!

This article was originally published by The Wealth Research Group.

Source: USNews

I just heard Joe Biden speak twice over this past week, but have not seen any commentary on the significance of his words in both the mainstream and the alternative media, so it is imperative that we study it ourselves. In my opinion, the gravity and weight his message will have on Americans and probably the world are grossly misunderstood and underappreciated.

I’m not an American, but most of my material interests (businesses, income, investments, and assets) are concentrated in the United States, where the world’s most appreciated classic value investor, Mr. Warren Buffett, says the mother of all opportunity exists.

We keep hearing, day in and day out, week after week, every single year, for decades on end, that America is where anyone can live the dream.

That’s false, and it’s a dangerous mantra to repeat. America’s system isn’t built to create rags-to-riches stories anymore, as it was in the Industrial Revolution of the 1890s (Edison, Ford, Carnegie, Rockefeller, Bridgestone, and others) or in the 1950s, after the generation of the Great Depression came back from Europe and began America’s baby boom. Today, it’s a complicated place to escape physical poverty.

Since the global economy is re-opening, after the worst shock to it in modern history, Biden’s speeches have caused us to think long and hard about which America the world is waking up to.

Here are some of the questions I’m thinking deeply about:

  1. How is Biden’s administration going to pivot away from previous presidencies and policies?
  2. What were the damages that the 2020 healthcare crisis inflicted upon the general population and how will the government address it?
  3. How should I personally change my action planhttps://www.wealthresearchgroup.com/me, my strategies, and my execution?

Each of these holds within it many (probably dozens) small questions, which my partners and mastermind allies are talking through.

Courtesy: U.S. Global Investors

 

The largest item on this massive American Rescue Plan is you, the individual. In 2008, you got nothing. In 2020 and in 2021, you got direct payments.

Biden’s speech deleted the legacy of many former presidents, perhaps going back fifty or sixty years. He canceled the notion of the trickle-down effect, which maintains that by lowering taxes and freeing up capital, entrepreneurs and wealthy institutions will automatically elect to deploy those disposable funds in the domestic real economy, helping the backbone of the country, its middle class, and lower echelons to come up in the world.

He basically said that the trickle-down effect theory has failed and that, and this is a direct quote, “This time, it’s time that we build an economy that grows from the bottom up and the middle out — (applause) — the middle out. And this bill shows that when you do that, everybody does better. The wealthy do better. Everybody does better across the board.”

One of my core principles in life is to try to understand people and where they’re coming from. I think of what makes people do what they do and when I think about Biden’s administration, I contend that they have picked up on the fact that Americans want two things more than anything else, and you’ll hear Biden’s team repeat these two things over and over again:

  1. Americans want the truth/accountability.
  2. Americans want inclusiveness in the bounties of the system.

Biden is capitalizing upon the deep distrust in Washington, in order to prove that the government can function.

You may be a die-hard Trump supporter, simply a Republican, a Democrat, or a political atheist; it doesn’t matter to me. My value is in showing you what you can learn from what’s going on.

In his speech, Biden canceled several sacred cows and I will be publishing specific information on how this impacts us. These will focus upon (1) the ability to go from rags-to-riches now, (2) states that are worth considering moving to, (3) professions that are worth looking into, (4) books that you should {must} read, (5) investment opportunities and (6) additional insights.

 

The post BIDEN FULLY DELETES TRUMP! first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Stimulus 3.0: Who’s Getting Paid and Who’s Paying Up?

On Wednesday, the  U.S. House gave final approval to coronavirus stimulus bill 3.0. For those keeping score at home, that brings total stimulus spending approved during the pandemic to $5 trillion.

So, what exactly is all of this money going to be spent on? And who is going to pay for it?

The House passed the so-called American Rescue Plan by a 220-to-211 vote pretty much along party lines. In fact, not one Republican voted for the bill. They said it was too porky. Keep in mind, Mitch McConnell helped push stimulus 2.0 across the finish line with plenty of Republican support. Apparently, only Republican pork is acceptable to the GOP. But I digress.

I should pause to note that virtually none of this spending is authorized by the Constitution. I realize nobody cares about this anymore, but I still feel compelled to point it out. Whenever politicians start screaming about the “rule of law,” you can remind them of this.

Who’s Getting Paid?

The stimulus was sold on the direct payment to Americans. Yes. You’re going to get a check. (Or more likely a direct deposit.) Individuals making less than $75,000 per year and married couples making less than $150,000 per year will get the full $1,400 per person benefit. But the amount phases out between $75,000 and $80,000 per year. ($150K and $160K for couples.) If you make more than that – sorry about your luck.

The direct payments account for about $400 billion of the $1.9 trillion spending deal.

So, who gets the other $1.5 trillion?

There is a child tax credit of $3,000 per kid between the ages of 6 and 17. The amount increases to $3,600 for children under 6. A tax credit is a fancy term for a check. It will be sent to families via direct deposit on a “periodic basis” over the next year.

The bill extends the $300 weekly unemployment benefit through Sept. 6. It also provides a $10,000 tax break on said benefits. (Yes, the IRS gets a cut of unemployment payments.) In other words, many people will continue to make more money sitting at home than they would if they went back to work. This is a fantastic way to boost employment – not.

Of course, there is more money for so-called pandemic relief. This is, after all, supposed to rescue America from the pandemic. There are billions of dollars slated for coronavirus testing and contact tracing, expanding the public health workforce, and for vaccine distribution.

State and local governments will get another nice payday from Uncle Sam — $350 billion is allotted for state, local and tribal governments, along with US territories. States and D.C. will get about $195 billion. Counties and cities will split $130 billion in aid.

School systems will also get some money. The bill sets aside nearly $130 billion to “help K-12 schools reopen.” That seems like a lot of money to spend to open the doors, but according to the Washington Post, the money will be spent on “improving ventilation systems, reducing class sizes, buying personal protective equipment and implementing social distancing.” About $40 billion is earmarked for colleges and universities.  There is also money in the bill for Head Start and other children’s programs, along with $1.25 billion for summer enrichment, $1.25 billion for after-school programs, and $3 billion for education technology.

Some folks will get housing assistance. The bill allots more than $20 billion for rental assistance and homeless relief. There is $10 billion in the plan for mortgage assistance.

The stimulus plan also includes money to prop up failing pension plans. I have no clue what this has to do with the pandemic. Public pensions have been spiraling down the tubes for years. But there ya go.

Amtrak gets $200 million.

The FEMA Emergency Food and Shelter Program gets $510 million.

A federal infrastructure program to help local governments continue “crucial capital projects” gets an extra $10 billion.

Coronavirus student loan relief is now all tax-free.

There is more money for various small business loan programs. The Paycheck Protection Program gets another $7 billion and non-profits will now be eligible. A cool $175 million is allocated for “outreach and promotion.” The bill will create a Community Navigator Program to help target eligible businesses.

There’s a new $25 billion grant program for bars and restaurants.

I’m sure there’s a lot more buried in the plan. After all, it’s nearly 600 pages long. But you get the idea.

Who’s Going to Pay for All of This?

Nobody. It’s free.

OK. That’s not really true. But that’s how most people are treating it.

Ultimately, the U.S. government will borrow this $1.9 trillion, just like it borrowed the other $3.1 trillion spent to “stimulate” the economy.

One might consider this problematic. After all, borrowed money has to be paid back. But shhhh. We don’t talk about that.

On March 1, the national debt pushed above $28 trillion for the first time. We’re told now is not the time to worry about debt because we have an emergency. Of course, we didn’t worry about it when there wasn’t an emergency either. During the “greatest economy in the history of the world” prior to the pandemic, the Trump administration ran a $1 trillion budget deficit. So, I’m not quite clear as to when we actually start to worry about it.

But you should probably enjoy your $1,400 checks while you can because at some point Uncle Sam is going to come with his hand out and the chatter about raising taxes will commence.

Of course, there is no way to tax away this debt. So spend that $1,400 now because it’s not going to be worth a whole lot once the inflation tax hits.

Ultimately, the Federal Reserve will monetize a big chunk of this debt. There is not enough demand for all of the Treasury bonds the U.S. government is going to have to sell to finance this spending boondoggle.  So, the central bank will step in and prop up the bond market by purchasing U.S. Treasuries on the open market with money created out of thin air. This creates artificial demand for bonds and keeps interest rates low. Meanwhile, all of this new money gets injected into the economy, driving inflation higher. The Fed already expanded the money supply by record amounts in 2020.

As financial analyst Peter Schiff said in a podcast, the dollar’s loss is not America’s gain. You will pay for your $1,400 stimulus check, and your enhanced unemployment, and your tax credits. And you will pay dearly in a loss of purchasing power.

The U.S. government has already gone beyond the limits of “sustainable” deficits. The question is whether or not the Fed can keep doing this indefinitely. And the answer is no.

This article was adapted from an article originally published at SchiffGold. 

The post Stimulus 3.0: Who’s Getting Paid and Who’s Paying Up? first appeared on Tenth Amendment Center.

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MY NEXT MOVES: TECHMAGEDDON/GOLD HORRORS!

This article was contributed by Portfolio Wealth Global.

By now, it’s clear that the world is aware of the changing dynamics in growth prospects for the global economy. After twelve years (2009-2021), where the world’s largest economy was growing very slowly, the millennials and Gen Z demographics are now generating organic growth in the economy. Lowering rates artificially isn’t needed anymore to overcome the demographics cliff.

These age groups, now comprising over one-third of the country’s inhabitants, are searching for better jobs, newer homes, a wife/husband, having children, and moving into adulthood.

They’re going to be responsible for generating higher income tax receipts, servicing the interest payments on the national debt, creating real jobs and incorporating new businesses, and shaping the future of America.

TECH WRECK: THE TRUTH

  1. Dominance: Despite calls for the end of the tech sector, as the leading one, before all others, we don’t think that big tech is going to struggle or languish.

We do think emerging tech (the hype bubble that was rampant and prevalent for years) is over!

Investors are waking up to the fact that real growth is happening, so there’s no need to grasp for straws and pay earnings multiples that make no real-world sense for the few businesses that are “going to change the world.”

  1. Interest Rates: Don’t kid yourself that something like the 1970s is coming.

Rates might continue to go up, but nothing like what the inflationists keep harping on.

As opposed to that period, when America was the creditor for the rest of the world, today it’s the empire of debt. Any rise in Treasury yields is a severe drag on Washington’s ability to balance the books.

The CBO (Congressional Budget Office) calculated a record-breaking $9.7tn to the deficit until 2030, if rates just creep up by 1.00%.

The bonds bull market, which began in 1982 and lasted nearly 40 years, is over.

Courtesy: Zerohedge.com

I’ve been active this past week, adding to existing positions, entering new ones, and planning my entrance into a number of core positions!

The first part of the “buy low, sell higher” sentence mandates, by definition, that one acts when the panic spreads.

PORTFOLIO UPDATES: MARCH 2021

A. Adding cash – I literally built a cash position, equivalent to 30% of the overall portfolio.

In two to three years, you’ll look back at March 2021 and ask yourself why you didn’t buy more.

B. Solar Energy – My two favorite companies, SolarEdge (SEDG) and Enphase (ENPH) have finally come down a lot.

They’ve been on our Watch Lists for years and I’ve been buying.

C. Expensive Tech – I want to take advantage of the balloon deflating and enter into positions, which were so illogically priced thus far that it made no sense.

Therefore, in accordance with our Watch Lists, I entered into positions in BigEcommerce (BIGC), Collective Growth (CGRO), Corsair Gaming (CRSR) and Protalix (PLX).

Each holding represents 1% to 1.5% of the portfolio.

D. Major New Positions – In the next four weeks, we will be revealing two of the highest-conviction speculative holdings in our company’s history.

In order to sell higher, one is forced, by mandate, to buy cheap.

Remember this is the Bible of real investors.

With gold, the bottom is probably within reach. The panic that tightening is coming has been fully discussed by the FED; it’s not planned!

The post MY NEXT MOVES: TECHMAGEDDON/GOLD HORRORS! first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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The Fed Enabling Biden and Congress’ Destructive Agenda

According to the Congressional Budget Office (CBO), 2021 will be the second year in a row in which the federal debt exceeds Gross Domestic Product (GDP). CBO also projected that this year’s federal deficit will be 2.3 trillion dollars, which is 900 billion dollars less than last year. However, CBO’s projections do not include the 1.9 trillion dollars “stimulus” bill Congress is likely to pass.

The CBO’s report was largely ignored by Congress and the media. One reason the report did not get the attention it deserves is Federal Reserve Chairman Jerome Powell’s continued commitment to making sure Fed policies enable Congress to spend as much as Congress deems necessary to address the economic fallout from the coronavirus panic.

As financial analyst Peter Schiff points out, the Fed’s commitment to ensuring the government can run up massive debt means the Fed will not allow interest rates to increase to anywhere near what they would be in a free market. This is because increasing interest rates would cause the federal government’s debt payments to rise to unsustainable levels. Yet, the Fed cannot admit it is going to keep rates near, or even below, zero indefinitely without unsettling the markets. So, the Fed continues to promise interest rate hikes in the future and the markets pretend to believe the Fed. When (or if) the lockdowns end, the Fed will find a new crisis justifying “temporarily” keeping interest rates low.

The Federal Reserve has not just endorsed massive federal spending, Fed Chairman Powell has also endorsed masks, vaccines, and social distancing to defeat the coronavirus and restore the economy. It is disappointing, but not surprising, to see the Fed go full Fauci.

The overreaction to coronavirus is a cause of the explosion in federal spending and debt we have witnessed over the last year. However, federal spending already greatly increased from January 2017 until the lockdowns. This spending growth occurred under a Republican president, a Republican Senate, and, from 2017 to 2019, a Republican House. One bright spot in Democratic control of the presidency and both houses of Congress is more Republicans will fight excessive spending and claim to be “deficit hawks.”

Republican hypocrisy in claiming to care about spending and debt only when a Democrat sits in the Oval Office is one reason why Democrats can so easily disregard debt. Another reason is the left’s embrace of Modern Monetary Theory. Modern Monetary Theory is the latest version of the fairy tale that politicians need not worry about debt and deficits as long as the central bank can monetize the federal debt.

Unless the government changes course, America will experience a crisis greater than the Great Depression. The crisis will include a final rejection of the dollar’s world reserve currency status. There will also be much increased price inflation. At that point Congress will have no choice but to limit spending, although it will try to hide cuts in popular entitlement programs by “adjusting” government measures of inflation. Congress could then blame the Fed for the reduction in value of government benefits.

Those who know the truth have two responsibilities. First, ensure they and their families are protected when the crash comes. Second, redouble efforts to spread the ideas of liberty and grow the liberty movement so politicians are pressured to cut spending and debt and to end the Fed.

Copyright © 2021 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.

The post The Fed Enabling Biden and Congress’ Destructive Agenda first appeared on Tenth Amendment Center.

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