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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.

 

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Go To The Stores And Stock Up Now Because Things Are About To Get Really Crazy

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

If there are things that you need to stock up on, you should do it right away.  For weeks, I have been writing articles about the rampant inflation that we are witnessing right now.  We haven’t seen anything like this since the Jimmy Carter era of the 1970s, and many are warning that it is going to get even worse in the months ahead.

Get Ready For The Most Painful Inflation Since The Jimmy Carter Years Of The 1970s

So that means that prices are never going to be lower than they are at this moment.  Even more importantly, we are also being warned that the widespread shortages in our economy are about to get even worse.  In fact, the largest meatpacker in the entire world was just hit by a cyberattack, and this has forced it to stop activity “at its plants in several U.S. states”

The White House said on Tuesday that Brazil’s JBS SA has informed the U.S. government that a ransomware attack against the company that has disrupted meat production in North America and Australia originated from a criminal organization likely based in Russia.

JBS is the world’s largest meatpacker and the incident caused its Australian operations to shut down on Monday and has stopped livestock slaughter at its plants in several U.S. states.

PREPPING FOR THE UPCOMING GOVERNMENT-INDUCED FOOD SHORTAGES

Many of you may not be familiar with JBS, but this is a very big deal.

According to Bloomberg, “a fifth of America’s production” will be wiped out while these plants are down…

JBS’s five biggest beef plants in the U.S. — which altogether handle 22,500 cattle a day — have halted processing following a weekend attack on the company’s computer networks, according to JBS posts on Facebook, labor unions and employees. Those outages alone have wiped out nearly a fifth of America’s production. Slaughter operations across Australia were also down, according to a trade group. One of Canada’s largest beef plants was idled for a second day.

Until this crisis passes, and hopefully that will be as soon as possible, meat will be harder to get and prices will be higher.

The Biden administration is once again blaming Russia for this latest cyberattack.  Whether that is true or not, relations between the U.S. and Russia will continue to rapidly deteriorate, and many are deeply concerned about where all of this hostility will eventually take us.

Sadly, this new meat shortage is just the tip of the iceberg.  Earlier today, the Drudge Report linked to an article with this stunning headline: “How the World Ran Out of Everything”.  The following is a short excerpt from that article…

In Conshohocken, Pa., Mr. Romano is literally waiting for his ship to come in.

He is vice president of sales at Van Horn, Metz & Company, which buys chemicals from suppliers around the world and sells them to factories that make paint, ink and other industrial products.

In normal times, the company is behind in filling perhaps 1 percent of its customers’ orders. On a recent morning, it could not complete a tenth of its orders because it was waiting for supplies to arrive.

You may have noticed that products are increasingly going “out of stock”, and this trend isn’t going away for the foreseeable future.

Meanwhile, inflation threatens to spiral wildly out of control.  At this point, even Costco executives are publicly warning that inflation has become a major problem

Don’t tell Costco executives that inflation is low.

The big-box club chain said it’s been seeing accelerating prices across a range of products, including shipping containers, aluminum foil and a 20% spike in meat prices over the past month.

“Inflationary factors abound,” CFO Richard Galanti said on the company’s fiscal third-quarter earnings call Thursday.

If you know that you are going to need something in the months ahead, buy it now, because with the way things are going there is a very good chance that you will be paying much more if you wait.

Have you noticed that some companies are trying to hide inflation by shrinking package sizes?  This is a phenomenon that is known as “shrinkflation”

Consumers are paying more for a growing range of household staples in ways that don’t show up on receipts – thinner rolls, lighter bags, smaller cans – as companies look to offset rising labor and materials costs without scaring off customers.

It’s a form of retail camouflage known as “shrinkflation,” and economists and consumer advocates who track packaging expect it to become more pronounced as inflation ratchets up, taking hold of such everyday items such as paper towels, potato chips and diapers.

For example, I absolutely love Tillamook ice cream.  It is the best ice cream that I have ever had in my entire life, and if you have tasted it then you know what I am talking about.

Unfortunately, they recently felt forced to shrink the size of their packaging from 56 ounces to 48 ounces, but they kept the price the same.

Lots of companies are now doing this because the cost of raw materials is going through the roof.  Even Elon Musk is complaining about rising prices for raw materials

Perhaps finally realizing it can’t turn a profit selling vehicles or perhaps truly between a rock and a semiconductor hard place, Tesla is raising prices (and ditching features) from its vehicles.

CEO Elon Musk took to Twitter late on Memorial Day to explain the hikes, blaming them on the convenient scapegoat of supply chain issues.

“Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially,” Musk wrote in a Tweet late on Memorial Day.

Sadly, this is just the beginning.

Governments around the world continue to borrow and spend money as if tomorrow will never come, and global central banks continue to pump gigantic mountains of new money into their respective financial systems.

In this sort of environment, an “invisible sculpture” that is nothing but air can literally be sold for $18,000

An Italian artist was able to sell his invisible “immaterial” sculpture – which technically does not exist (in this plane at least) – for thousands of euros.

Salvatore Garau, 67, challenged the boundaries of contemporary art even further after cashing in ¢15,000 (around $18,000 or P875,000) for his work titled “Io sono” (I am) at a recent auction, as per Il Giorno on May 21.

The inflationary nightmare that so many of us have been relentlessly warning about is here, and it is going to continue to get worse.

In addition, I have a feeling that quite a few major “surprises” are coming our way during the second half of this year.

So go to the stores and stock up now, because things will soon get really crazy.

***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 Go To The Stores And Stock Up Now Because Things Are About To Get Really Crazy 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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The U.S. Government Is Here To Help: Tariffs On Lumber Could DOUBLE

The United States government is looking at increasing the theft and costs of lumber to the public as prices are skyrocketing. In fact, the “authorities” want to double the tariffs on lumber coming from Canada.

According to reports, the masters will be making it much harder for the slaves to afford lumber after they steal half their income in taxes then apply tariffs and hyperinflation to transfer wealth to themselves. Remember, we warned when former president Donald Trump decided to play the tariff game that those costs would be placed firmly on the backs of the American consumer, and we were right. There is too much evidence to ignore that tariffs are not put in place to “hurt” other countries but to destroy the purchasing power of an American consumer’s dollar.

This situation is no different under Biden than it was under Trump. Americans who purchase lumber will be footing the bill for these taxes. Wake up and start to realize what the system is doing. It’s going to be too late at some point.

The United States commerce department recommended a more than doubling of the tariffs on Canadian lumber last Friday despite a meteoric rise in prices and demand for the commodity. Specifically, the department recommended the “all others” preliminary countervailing and anti-dumping rate move to 18.32% from 8.99%. The proposed rates are subject to further review over the next six months before final duties are set sometime in November.

The move to increase tariffs on Canadian lumber suppliers comes as lumber prices have taken the brunt of the inflation and risen over 275% since last April alone. Canada’s share of the US lumber market sits at around 25% as well, according to the Wall Street Journal.

On May 22, National Association of Home Builders chairman Chuck Fowke released a statement criticizing the move to increase tariffs. “The administration should be ashamed for casting its lot with special interest groups and abandoning the interests of the American people,” he said.

It’s always the same and it won’t end until we decide it’s over.  No administration will save us or give us the freedom that was our birthright. It’s up to us to take the first step and realize the illusion they have created in order to control, impoverish, and own us all.

Stay alert, use your critical thinking. I know I frequently remind readers to do this, but it’s imperative at this point in history.  Use discernment and continue to prepare for anything you can. Once enough people awaken to the reality that government is slavery, they will not go down without a few last-ditch attempts to rule and control us all.

 

 

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Biden’s Plan For Hyperinflation: You Haven’t Seen Anything Yet

Joe Biden has released a budget/spending plan for the fiscal year 2022, and it is going to result in the destruction of what’s left of the United States dollar and hyperinflation that could rival Venezuela’s. The $6 trillion plan caused stocks to soar upon the announcement.

Does anyone still think the government works for them? I’ll be the bearer of bad news. They don’t. They have never, and they never will. They are in it for power and money and use the monetary system to control the slaves. If that isn’t obvious to you yet, you’re living under a rock or choose to not wake up to reality. For those who do care about their freedom, this plan is simply sinister.

“We are in economic freefall”, as Greg Mannarino says, and it will get worse.

According to a report by ZeroHedge, stocks initially knee-jerked higher, then retreated on the headlines reporting the proposed budget, which Biden can pass through the Senate using budget rules that allow Dems to circumvent the filibuster. According to the New York Times, it calls for the highest sustained levels of federal spending since World War II.

The mainstream media thinks this is just a fantastic idea, while the rest of us should know by now that inflation is the worst tax and hyperinflation is a quick and massive wealth transfer from the bottom straight to the top. Calls for spending at this level will have an effect on the already almost dead U.S. dollar. It will also impoverish those living on the edge. It appears that since they couldn’t completely take down the U.S. with a lockdown, they’ll try via the slaves’ monetary system they set up to keep us in line.

According to the NYT, the increase in federal spending, which follows both the COVID stimulus and Biden’s “Build Back Better” infrastructure plans, will be driven by “Biden’s two-part agenda to upgrade the nation’s infrastructure and substantially expand the social safety net, contained in his American Jobs Plan and American Families Plan, along with other planned increases in discretionary spending.”

Don’t worry, slaves. Biden plans to steal more of the fruits of your labor. He is expected to raise taxes and increase spending on tax enforcement, the annual deficits in Biden’s budget projections wouldn’t start to wane until the 2030s. Meanwhile, Biden’s “ambitions to wield government power to help more Americans attain the comforts of a middle-class life and to lift U.S. industry to better compete globally in an economy the administration believes will be dominated by a race to reduce energy emissions and combat climate change.”

They see us as slaves. It’s time to wake up. We had better take a stand or we will subject your children to the worst dystopian life anyone could fathom. Government is slavery. It can be nothing else and it doesn’t matter which side you are on.  “Less” slavery is still slavery. You are either free or you are not.  We need to break the brainwashing and the invisible chains around our necks before it’s too late.

 

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If Everything Is Going To Be Just Fine, Why Do The Shortages Just Keep Getting Worse?

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

They keep telling us that economic conditions are improving, but if that is true why are the shortages worse than ever?  For a moment, I would like to take you all the way back to 2019.  Before the pandemic came along, we didn’t have any shortages.

If you wanted something, you just went to the store and got it or you ordered it online.  Prices were low, global supply chains were functioning smoothly, and to most people, it seemed like it would stay that way for the foreseeable future.  But then the pandemic hit, and “panic buying” caused short-term shortages of certain items such as toilet paper and hand sanitizer.  It was understandable that people would want to hoard those things because there was a lot of fear in the air.  But we also knew that those shortages were only going to be temporary.

Now here we are in 2021, and we were told that things would be getting back to normal by now.

But instead, there are severe shortages everywhere around us.

In fact, the shortages are far worse than anything that we experienced in 2020.

For example, did you know that dozens of important drugs are in short supply?  According to the official FDA website, there are shortages of more than 100 drugs in the United States right now

If you found yourself in a situation like this, you can check the FDA’s drug shortage tracking system.

Right now there are currently about 120 drugs listed as having a shortage.

On the website, if you type in a drug name in the database search field you can see if and why it’s in short supply. You can also see whether it is scheduled to be discontinued, and when the supply may start flowing again.

This wasn’t supposed to happen.

Shortages just continue to get worse for the home building industry as well

“Builders are delaying starting new construction because of the marked increase in costs for lumber and other inputs,” said Mike Fratantoni, senior vice president and chief economist with the Mortgage Bankers Association, in a report Tuesday.

He added that supply shortages for appliances are also putting a damper on new home building activity.

Just over our northern border, the shortages have gotten really severe.  In some cases, the construction of homes “is months behind schedule” because the shortages have gotten so bad…

Home builders across Canada are getting hit by a string of supply-chain disruptions, resulting in widespread product shortages and explosive costs for the industry.

In some cases, home construction is months behind schedule as developers struggle to source everything from lumber to PVC pipes, insulation to windows. Builders are also holding back on presales, unable to accurately price their homes too far in advance, given that material costs can fluctuate wildly on a daily basis.

When asked about these shortages, one home building executive said that “it’s getting worse and worse every day”

“The whole supply chain is out of whack,” said Matt McCurrach, president of Homex Development Corp. in Kamloops, B.C.

“It’s getting worse and worse every day,” added Sue Wastell, president of Wastell Homes in London, Ont. “Literally every day, we’re finding out something else is not arriving when it was scheduled to. … We’ve never seen anything like this.”

Of even greater concern is the global shortage of computer chips.  This is something that I discussed extensively in my recent article entitled “A Severe Computer Chip Shortage Will Last ‘A Few Years’, And This Could Plunge The Global Economy Into Utter Chaos”.  Just about every industry that you can name is extremely dependent on equipment that uses computer chips, and CNN is telling us that this shortage “is going from bad to worse”

The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through 2021.

According to Goldman Sachs, 169 US industries embed semiconductors in their products. The bank is forecasting a 20% average shortfall of computer chips among affected industries, with some of the components used to make chips in short supply until at least this fall and possibly into 2022.

Actually, as I pointed out the other day, many executives now expect the computer chip shortage to extend into 2023.

For automakers, this is rapidly becoming a complete and total nightmare.  During the first quarter, global auto production was down by about 10 percent due to the chip shortage, but Ford has announced that production in the second quarter will be down by about 50 percent

Investors have heard plenty about the current state of capacity problems for months. Roughly 2 million cars—or about 10% of quarterly global automotive production—weren’t built in the first quarter because of no chips. Ford Motor (ticker: F), one of the auto makers feeling the shortage most acutely, said in late April that it expects to lose about 50% of planned second-quarter production.

A 50 percent decline in production?

That is nuts!

If automakers can’t make vehicles, then they will have to start laying off workers.

Unfortunately, that is precisely what just happened at one factory in northern Illinois

Some 1,600 jobs are being cut at a Jeep Cherokee factory in northern Illinois as automakers continue being plagued by the global shortage of semiconductors.

The U.S. arm of Stellantis, formerly known as Fiat Chrysler, said Friday it was cutting one of the two work shifts at its Belvidere Assembly Plant as of July 26. That could result in the layoffs of 1,641 workers, company spokeswoman Jodi Tinson said.

The economic optimists keep telling us that better days are right around the corner, but those better days never seem to materialize.

Instead, employment is still way below pre-pandemic levels, global supply chains are in a state of complete and utter chaos, and we are facing severe shortages of just about everything

Copper, iron ore and steel. Corn, coffee, wheat and soybeans. Lumber, semiconductors, plastic and cardboard for packaging. The world is seemingly low on all of it. “You name it, and we have a shortage on it,” Tom Linebarger, chairman and chief executive of engine and generator manufacturer Cummins Inc., said on a call this month. Clients are “trying to get everything they can because they see high demand,” Jennifer Rumsey, the Columbus, Indiana-based company’s president, said. “They think it’s going to extend into next year.”

The difference between the big crunch of 2021 and past supply disruptions is the sheer magnitude of it, and the fact that there is — as far as anyone can tell — no clear end in sight. Big or small, few businesses are spared. Europe’s largest fleet of trucks, Girteka Logistics, says there’s been a struggle to find enough capacity. Monster Beverage Corp. of Corona, California, is dealing with an aluminum can scarcity. Hong Kong’s MOMAX Technology Ltd. is delaying production of a new product because of a dearth of semiconductors.

If this is the “recovery”, what will things look like when the next severe economic downturn hits us?

In my entire lifetime, I have never seen such widespread shortages.

Those that are running things keep insisting that they have everything totally under control and that things will eventually get back to normal.

You can believe them if you want, but millions of others are preparing for a future in which their optimistic assessments of the future turn out to be very, very wrong.

***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 If Everything Is Going To Be Just Fine, Why Do The Shortages Just Keep Getting Worse? first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Peter Schiff: The Major Problem is “The Inflation Tax”

Gold bug Peter Schiff has said that the upcoming economic collapse will be much worse than the scamdemic. Coupled with the “inflation tax” and potential for food shortage, we could see a disastrous end to this year.

The Consumer Price Index (CPI) data for April came in much hotter than expected. Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.”

Schiff said this hot CPI print is a cause for concern and ultimately it is a tax.

It is the inflation tax. And if you look at how much the cost of living went up, measured by the CPI in the first four months of this year, it’s 2%. So, if you triple that to annualized it, we have consumer prices rising at 6% annually. But if you look at the monthly numbers, every month it accelerates. So, if you extrapolate the trend of the first four months of this year for the entire year, you’re going to get a 20% increase in consumer prices in 2021.” -SchiffGold

Inflation is going to massively impact the poor and middle class (which has been the target since the beginning of this scamdemic as the agenda rolls out).

Tucker Carlson asked if the value of the US dollar is falling as quickly as the CPI suggests, why would any country want to invest in US bonds? Doesn’t this threaten to cause a shake-up?

Schiff said they won’t want to invest. They’ll be selling US Treasuries.

Anybody that can connect these dots is going to be selling US Treasuries. And the problem is there’s a lot of US Treasuries to be sold.”

Peter noted that a lot of people are talking about a shortage of goods.

The real problem is the surplus of money. Whenever you print a lot of money, it’s always a goods shortage because the Federal Reserve can print all the money they want, but they don’t print products to buy with the money. So, we have all this money being printed. We’re not producing a lot. People are sitting at home cashing unemployment checks. This is a tax. It’s an inflation tax, a Biden tax, whatever you want to call it. But when Joe Biden says ‘don’t worry! Only people that make over $400,000 a year are going to have to pay higher taxes to fund all these programs,’ he’s lying. Because every American is going to pay the inflation tax. And it’s going to hit the middle class and the poor the hardest.

But the mainstream media and ruling class are telling people not to worry or panic. What isn’t said, is that this is all by design. The dollar will crash as a new central bank digital currency (total slavery) is introduced as the solution.

Alert: Programmable Central Bank Digital Currencies Will End All False Sense of Freedom

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

Stay prepared.  No one knows how soon this will begin to roll out, but it is in the works and they will do anything they can to get people locked into the system of total control. The only solution is to be self-reliant and break free.

The post Peter Schiff: The Major Problem is “The Inflation Tax” first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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No Relief In Sight: Food Prices Will Continue To Go Up

Anyone who has been to the grocery store lately has likely noticed the spike in food prices. But most are warning that because this is a hyperinflation situation, we should be expecting the prices of food and other necessities to continue to go up.

According to a report by Yahoo News, food price inflation, on a 12-month unadjusted basis, is running at 2.4% and was up 0.4% in April, the largest increase since October 2020. Overall inflation is running at 4.2% the largest 12-month increase since a 4.9% increase for the period ending September 2008. Even that’s likely a dramatic understatement based on the fact that most report an over 20% rise in food costs.

The mainstream media is now warning that we should expect the prices to continue to rise in the face of hyperinflation caused by money creation and fewer products thanks to the ruling class’s desire to destroy the food supply chain, which COVID gave them the perfect excuse to do.

“Any animal that you eat is eating grains, and it’s eating corn, soybeans, or soybean meal, and perhaps even some wheat,” said Sal Gilbertie the CEO and president of Teucrium Funds, the company’s ETFs track prices for corn, soybeans, and wheat.   “We see the prices of these grains go as high as they’ve been literally since 2012, 2013,” Gilbertie told Yahoo Finance Live.

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

Food industry manufacturers blame increasing chicken prices on the national labor shortage (but we all know it’s the fault of the central banks and their money creation) as well as an increase in demand. But, the Bloomberg Agriculture Spot Index, which tracks key farm products, saw prices spike at the end of April hitting their highest level in nine years. That surge is also driving up prices for bread and meat.

Everyone should be prepared.  Grab a few extra things now each time you shop if you haven’t been. It sure looks like before too long, we will be faced with a dystopia future in which prices are so high, the middle class has been priced out of eating.

Stay alert and aware. Take notice on your own that prices are going up and use your critical thinking. We are lied to constantly and consistently and the only way to beat the rulers and elitists hellbent on the enslavement of humanity is to wake up and start to question things while thinking for ourselves.

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The ‘Take This Job and Shove It’ Recession

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

So hey there Corporate America, the Fed, and your neo-feudal cronies: take this job and shove it. This time it really is different, but not in the way the Wall Street shucksters are claiming.

Conventional economists, politicos, and pundits are completely clueless about the unraveling that’s gathering momentum beneath the superficial surface of “reflation” because they don’t yet grasp we’re entering an unprecedented new type of recession: a ‘Take This Job and Shove It’ recession which is unlike any previous downturn.

Long-time readers know I’ve addressed the emergent class structure and systemic decay of the socio-economic order for many years. Just as a quick refresher, here are a few of the dozens of essays I’ve written on these topics:

America’s Nine Classes: The New Class Hierarchy 4/29/14

The Managerial/ Professional Class Is Burning Out 3/28/16

America’s Metastasizing Class Wars 8/27/20

This Is How It Ends: All That Is Solid Melts Into Air 9/10/20

This Is Why Inflation Will Rip Everyone’s Face-Off 9/17/20

What the chattering class of apologists, toadies, lackeys, factotums, and apparatchiks missed about the pandemic lockdown was the tidal change in perceptions of work and life enabled by a withdrawal from the deranging frenzy of work: once people had time to reflect on their lives, mortality, goals, identity, and the soaring costs and dwindling rewards of their efforts to “get ahead” via slaving away in a dead-end job/career, the tune that began to haunt their subconscious ruminations was Johnny Paycheck’s timeless classic, Take This Job And Shove It (2:31).

Whether anyone in the halls of power cares to notice or not, a mass withdrawal from the workforce is underway. What’s remarkable about this swelling exodus is that it isn’t confined to one class of workers: low-wage workers are jumping ship en masse, but so are mid-level white-collar workers and well-paid but overworked technocrats in the top 10%.

As the professional apologists frantically spew rah-rah PR about the “recovery” (you mean we’re all addicts and are now “recovering”?), the workforce is finally awakening to the emptiness of the PR: the rewards of the economy have flowed to two classes: the Financial Aristocracy (a.k.a. the New Nobility in our neo-feudal economy), the top 0.1% who now own more wealth than the bottom 80% of American households, and speculators, from the scammers on Wall Street to the daytraders gambling their stimmy payments.

The reality that wages have stagnated for the past 50 years is finally sinking in, and people are responding accordingly. By any realistic measure, most workers have lost ground when the purchasing power of their wages in the 1980s is compared to what their earnings buy now in healthcare, childcare, rent, higher education, property taxes, etc.

The erosion of labor’s value has been catastrophic for the bottom 60%. As I recently noted, I was making $12 an hour in 1985, an OK wage but nothing special, and after 36 years of inflation, many workers are still earning $12 an hour–or less. Measured in purchasing power, wages have declined since the early 1970s.

Take a glance at the chart below of wage’s share of the economy and observe it’s been in a downtrend since the early 1970s.

Meanwhile, the cost of big-ticket expenses such as healthcare, childcare, rent/housing, and higher education have tripled. Even high-earners such as physicians have lost ground, as their salaries in 1985 bought far more goods and services than their salaries do today.

Young high-earners have been flocking to the FIRE movement for years: financial independence, retire early is the upper-middle-class way of saying Take This Job And Shove It, as the goal is to save enough earnings by scrimping and saving to exit the workforce for good while still in your early 30s.

Lower-wage workers are finding other workarounds. Much to the consternation of employers, many are milking the extended unemployment payments. But beneath the radar, others have carved out informal-economy niches or found ways to slash their living costs–for example, constructing a micro-home on a cheap plot of rural land and saying goodbye to McMansion dreams and $2,000 a month rents for tiny apartments in decaying urban cores.

Even highly paid people are realizing that the meager rewards of slaving away to make Corporate America another couple trillion in profits isn’t worth their life. As desperate employers offer overworked technocrats bonuses to keep them slaving away, the workers are plowing the bonuses into bets they hope will pay off and fund their escape from neo-feudal serfdom sooner than planned.

While the apologists, toadies, lackeys, factotums, and apparatchiks serve their neo-feudal lords for pennies tossed in the sawdust, the most productive workers are melting away. Nobody dares mention the number of physicians and nurses who are leaving America’s sick-care system; once again, the pandemic served as a catalyst for action to be taken on long-simmering frustrations.

YOLO (you only live once) isn’t just about making risky bets in bubblicious markets–it’s about deciding to do something else with your life other than make Corporate America another couple trillion in profits or keep your small business afloat as taxes, fees, penalties, surcharges, rent, and every other expense soars.

The pandemic posed a question few had time to ponder: what’s the point? What no financial analyst dares confess is the corporate profits they cheer every quarter have come at a cost that many Americans will soon be unable to bear. Millions of highly experienced, essential employees are either planning to quit, retire, cut their hours or switch to lower-stress jobs.

It isn’t easy to escape the clutches of the Corporate-State neo-feudal system; the costs (tangible and intangible) of self-employment have been rising steadily for decades:

The Troubling Decline of Financial Independence in America (August 28, 2015)

The Fading American Dream of Working for Yourself (October 2015)

Social Mobility between classes has decayed, and people are finally beginning to grasp this. After you do all the right things–borrow a fortune to get a college degree, build your resume with low-paying jobs working ridiculous hours, etc., you eventually realize you’re a precariat just like everyone else. Maybe a better-paid precariat, or maybe a poorly-paid precariat, but this is all the Financial Mobility you’re ever going to get.

The Top 0.1% winners in this system are protected by the Federal Reserve, while the losers are strip-mined by crushing taxes. Even if they don’t understand the exact mechanisms of the Federal Reserve’s bag of tricks, they now understand the rich get richer and the state protects them from the precariats and serfs doing all the work.

The Federal Reserve can conjure up trillions of dollars out of thin air to further enrich the nation’s parasitic elite, but they can’t print experienced, motivated workers or people with entrepreneurial skills.

The danger to the state is not who rebels but who opts out. Outright rebellion suits the state, as it can turn its monopoly on force on the citizenry. But when those keeping everything glued together have had enough and find a way to quit, the entire system starts unraveling in ways the state is powerless to stop.

If the Technocrat Caste opts out, the private sector loses its tax donkeys and managerial expertise. If what remains of the middle class opts out, what’s left of America’s civic glue disappears.

If the working poor opt-out, the scut work required to provide the upper classes with their comforts will not get done. (Hey, Mr. State Bureaucrat and Mr. Financier, here’s a saw and a knife. Butcher your own meat.)

There’s only so much inequality and unfairness a workforce can bear, and America is well past that point. To those who claim “people can’t afford to quit,” just watch. Those who’ve had enough are finding ways to opt-out. There’s plenty of woodwork to disappear into.

So hey there Corporate America, the Fed, and your neo-feudal cronies: take this job and shove it. This time it really is different, but not in the way the Wall Street shucksters are claiming.

So take this job and shove it, I ain’t working here no more. I’m stepping off the rat-race merry-go-round, thank you very much. You can find some other sucker to do your dirty work and BS work, all for the greater glory and wealth of your New Nobility shareholders. I’m outta here. So I won’t get rich, that dream died a long time ago. What I’m interested in now is getting my life back and getting the heck out of Dodge as things unravel.

Of related interest:

My book Get a Job, Build a Real Career and Defy a Bewildering Economy is a primer for those seeking sustainable self-employment in the nooks and crannies of the economy.

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

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Colonial Pipeline Back Up, But It Will Take SEVERAL DAYS To Resupply

The Colonial Pipeline is back up and running. It’ll take several days to resupply those empty gas stations. But what’s here to stay are the higher prices in fuel.

The Federal Reserve has been hiding the inflation in the energy sector and this was either a planned event or very convenient for the ruling class. This agenda is in full force, and Greg Mannarino calls it “scapegoat economics” because we are not allowed to know that this is by design and done by the government to grab control and exhibit power over people.

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

The gasoline shortages, due to this convenient cyber attack on the pipeline, have hit the American south the hardest. States such as North Carolina, Virginia, and Florida have each issued emergency declarations this week as more than 1,000 gas stations in several states ran dry. As of Wednesday afternoon, 65% of gas stations in North Carolina were without fuel, as well as a staggering 78% in the state’s Greenville/Spartanburg/Asheville/Anderson metro area, according to GasBuddy, an app that helps motorists find good deals at the pump. The same was true for 44% of stations in Virginia, and 43% in South Carolina, while the national average for a gallon of gasoline exceeded $3 for the first time since 2014, according to a report by RT. 

Many people are figuring out that all of this is part of the overall agenda. As PayDro V, a YouTube creator says, “there are no coincidences.” Unless you take the vaccine and die, of course…

This pipeline shutdown could be just the beginning.  We warned that this was convenient and ticked off several boxes for the agenda.  Is it a false flag? That’s up to you to decide, because we know the rulers and their puppets in the media will not be telling us.  We have to figure this stuff out for ourselves.

Who’s To Blame For The Pipeline Being Down? Russia, Of Course

On that note, it does look like some people are figuring it out, but still, many more are fast asleep to what their future entails.

As always, stay alert and remain prepared. It is difficult to say what will happen next and just how bad things will get. Those who desire ultimate control and the permanent enslavement of humanity have not given up and we should not expect them to. It seems like it has only just begun.

The post Colonial Pipeline Back Up, But It Will Take SEVERAL DAYS To Resupply first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Colonial Pipeline Back Up, But It Will Take SEVERAL DAYS To Resupply

The Colonial Pipeline is back up and running. It’ll take several days to resupply those empty gas stations. But what’s here to stay are the higher prices in fuel.

The Federal Reserve has been hiding the inflation in the energy sector and this was either a planned event or very convenient for the ruling class. This agenda is in full force, and Greg Mannarino calls it “scapegoat economics” because we are not allowed to know that this is by design and done by the government to grab control and exhibit power over people.

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

The gasoline shortages, due to this convenient cyber attack on the pipeline, have hit the American south the hardest. States such as North Carolina, Virginia, and Florida have each issued emergency declarations this week as more than 1,000 gas stations in several states ran dry. As of Wednesday afternoon, 65% of gas stations in North Carolina were without fuel, as well as a staggering 78% in the state’s Greenville/Spartanburg/Asheville/Anderson metro area, according to GasBuddy, an app that helps motorists find good deals at the pump. The same was true for 44% of stations in Virginia, and 43% in South Carolina, while the national average for a gallon of gasoline exceeded $3 for the first time since 2014, according to a report by RT. 

Many people are figuring out that all of this is part of the overall agenda. As PayDro V, a YouTube creator says, “there are no coincidences.” Unless you take the vaccine and die, of course…

This pipeline shutdown could be just the beginning.  We warned that this was convenient and ticked off several boxes for the agenda.  Is it a false flag? That’s up to you to decide, because we know the rulers and their puppets in the media will not be telling us.  We have to figure this stuff out for ourselves.

Who’s To Blame For The Pipeline Being Down? Russia, Of Course

On that note, it does look like some people are figuring it out, but still, many more are fast asleep to what their future entails.

As always, stay alert and remain prepared. It is difficult to say what will happen next and just how bad things will get. Those who desire ultimate control and the permanent enslavement of humanity have not given up and we should not expect them to. It seems like it has only just begun.

The post Colonial Pipeline Back Up, But It Will Take SEVERAL DAYS To Resupply first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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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.

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“The Costs Are Up, Up, Up. We’re Seeing Substantial Inflation” Admits A Surprised Warren Buffett As Powell, Yellen See Nothing

This article was originally published by Tyler Durden at ZeroHedge. 

We already touched on two of the more colorful exchanges from Saturday’s Berkshire annual videoconference, both of which incidentally starred the traditionally far more outspoken Charlie Munger, who first crushed a generation’s monetary dreams saying that today’s Millennials will have “a hell of a time getting rich compared to our generation”, and then infuriated tens of millions of crypto fans and diamond hands (such as Dan Loeb) when he said that “the whole damn development” of cryptocurrencies “is disgusting and contrary to the interests of civilization.”

Yet while those two incidents may prompt the most Monday morning watercooler talk, what was most relevant from a macro and markets standpoint was Buffett’s observation of something the Fed and Treasury are terrified to admit: that a tidal wave of inflation has been unleashed upon the US and it’s only getting worse.

Speaking to Berkshire’s millions of shareholders on Saturday, Buffett said that he was surprised by the “red hot” US economic rebound and warned the company was being hit by inflationary pressures.

“We’re seeing very substantial inflation,” the 90-year-old billionaire who apparently does not have a Fed charge card, said in his nearly 6-hour long address to investors. But it’s what he said that was especially ominous:  “It’s very interesting. We’re raising prices. People are raising prices to us and it’s being accepted.”

Why does this matter? Because the ability to pass on price increases and have them stick, means the surge in prices will not be transitory, no matter how many times the Biden admin, the Fed, or the Treasury lie and vow the opposite.

Buffett’s comments came one day after the US revealed that household incomes rose by the most in recorded history in March as the latest round of Biden stimmies hit bank accounts.

This has also pushed the total amount of government transfer payments to a record 34%. That’s right: a third of all US household income is now from the state. Marx would be proud.

The surge in income which for now has resulted in record excess savings of roughly $2 trillion, has sent reverberations throughout financial markets, with investors’ inflation expectations over the next decade rising to an eight-year high.

“It just won’t stop,” Buffett added. “People have money in their pocket and they’ll pay the higher prices… There’s more inflation going on that people would have anticipated six months ago or thereabouts” he added.

We urge readers to go over the full exchange because the world Buffett lives in and the one populated by the clueless career economists of the Fed are apparently totally different:

BECKY QUICK: I will ask this question from Chris Freed from Philadelphia. And whoever wants to take this on stage, “From raw material purchases by Berkshire subsidiaries, are you seeing signs of inflation beginning to increase?”

WARREN BUFFETT: Let me answer that, then Greg can get more into that. We’re seeing very substantial inflation – it’s very interesting. I mean, we’re raising prices. People are raising prices to us. And it’s being accepted. Take home-building. I mean, you know, the cost of– we’ve got nine home builders in addition to our manufactured housing operation, which is the largest in the country.

So we really do a lot of housing. The costs are just up, up, up. Steel costs, you know, just every day, they’re going up. And there hasn’t yet been because the wage– the wage stuff follows. I mean, the– the UAW writes a three-year contract, we got a three-year contract.

But if you’re buying steel at General Motors or someplace, you’re paying more every day. So it’s an economy, really– it’s red hot. I mean, and we weren’t expecting it. I mean, all our companies, when they thought when they were allowed to go back to work at, well, various operations, we closed the furniture stores, I mentioned.

You know, they were closed for six weeks or so on average. And they didn’t know what was going to happen when they opened. And they can’t stop people from buying things. And we can’t deliver them. They say, well, that’s OK because nobody else can deliver them either, and we’ll wait for three months or something of the sort.

The backlog grows, and then we thought it would end when the $600– the payments ended, and I think around August of last year, it just kept going. And it keeps going and it keeps going and it keeps going. And I get the figures. Every week, we go over, day by day, what happened at the three different stores in Chicago and Kansas City and Dallas.

And it just won’t stop. People have money in their pocket, and they pay the higher prices. And when corporate prices go up in a month or two– and that was the price increase for April 1– our costs are going up, supply chain’s all screwed up for all kinds of people. But it’s a buy– it’s almost a buying frenzy, except certain areas, you can’t buy at.

You know, you really can’t buy international air travel. And so the money is being diverted from a little– some piece of the economy into the rest. And everybody’s got more cash in their pocket than– except for, meanwhile, it’s a terrible situation for a percentage of the people.

I haven’t worn a suit for a year, practically. And that means that the dry cleaners just went out of business. I mean, nobody’s bringing in suits to get dry cleaned, and nobody’s bringing in white shirts the place where my wife goes.

The small business person, if you didn’t have takeout and delivery services for restaurants, you got killed. On the other hand, if you’ve got takeout facilities, then, same-store sales at Dairy Queen are up a whole lot, and they adapted. But it is not a price-sensitive economy right now in the least. And I don’t know exactly how– what shows up in different price indices. But there’s more inflation going on than– quite a bit more inflation going on than people would have anticipated just six months ago or thereabouts.

CHARLIE MUNGER: Yeah, and there’s one very intelligent man who thinks it’s dangerous. And that’s just the start.

WARREN BUFFETT: Greg, you probably are in a good position to comment.

GREG ABEL: Yeah, well, Warren, I think you touched on it. When we look at steel prices, timber prices, any petroleum input, you know, fundamentally there’s pressure on those raw materials. I do think something you’ve touched someone, Warren, and it goes really back to the raw materials.

There’s a scarcity of product right now, of certain raw materials. It’s impacting price and the ability to deliver the end product but, you know, that scarcity factor is also real out there right now, as our businesses address that challenge. And it may be the sum of that’s contribute– or arisen from the storm we previously discussed in Texas. When you take down that many petrochemical plants in one state that the rest of the country is very dependent upon it, we’re seeing it flow through both on price, but overall in scarcity of product, which obviously go together. But there’s challenges, that’s for sure.

Buffett’s admission was also remarkable because it was in opposition to all the official manure spoon-fed to the gullible peasants by the President and his economic henchmen (or is that sexist: perhaps henchpeople is more apt?). Case in point, today former Fed chair and current Treasury Secretary Janet Yellen said that Biden’s multi-trillion economic plan is unlikely to create inflation pressure in the U.S. because the boost to demand will be spread over a decade.

“I don’t believe that inflation will be an issue. But if it becomes an issue, we have tools to address it,” Yellen said Sunday on NBC’s leftist Meet the Press show. “It’s spread out quite evenly over eight to 10 years. So, the boost to demand is moderate,” she said of the proposed spending.

Yellen also said the U.S. has the “fiscal space” to make investments in its economy, with interest rates low and likely to remain so, but over the long haul, budget deficits need to be “contained.”

In other words, all those soaring prices, including the Costco shrinkflation seeking to mask a 14% price increase with small offerings… well, just ignore that for a few more years until the “transitory” period ends. Assuming it ends, of course. It didn’t quite end in the 1970s when inflation was also supposed to be transitory.

Yellen said that while the administration needs “fiscal space to be able to address” emergencies like the pandemic, it needs to do so with a long-term plan in mind. “We don’t want to use up all of that fiscal space, and over the long-run deficits need to be contained to keep our federal finances on a sustainable basis,” she said.

Asked about the proposed tax increases that would come with Biden’s spending plan, Yellen focused on the U.S. proposal for a global minimum corporate tax, and efforts to clamp down on tax loopholes in the U.S. “An important way of paying for this is increasing tax compliance,” she said. “It’s estimated that underpayment of taxes that are really due is costing us, the federal government, about $7 trillion over a decade.”

While Yellen touched on rising taxes, there were several other items she refused to touch upon:

It wasn’t just Yellen lying to the people: another top Biden administration economic adviser said inflation now apparent in certain pockets of the economy is “transitory” as the nation exits the pandemic. Cecilia Rouse, chair of the White House Council of Economic Advisers, said supply chain issues and labor market shortages are “bumps along the way” to recovery.

There’s no sense for now that these price increases are becoming “de-anchored,” she said on “Fox News Sunday,” while promising to remain vigilant on inflation pressures.

“For the time being we expect at most transitory inflation, that is what we expect coming out of a big recession,” she said. It wasn’t clear what would happen when her expectation was proven to be wrong.

Yellen and Rouse spoke following last week’s unveiling of the latest economic plan from the Biden administration, which is proposing a combination of $1.8 trillion in spending and tax credits for areas such as education, child care, and paid family and medical leave. This comes on top of almost $2.25 trillion in infrastructure, home health care and other outlays that the administration proposed at the end of March, not to mention the $5 trillion that the government has injected into the economy through the three pandemic relief packages passed by Congress during the past 14 months.

In short, we are looking at $10 trillion in new government handouts in the coming years, give or take a few trillion.

None of this matters to the “big man” himself – and no, not the nearly 80-year-old Biden, of course, who is merely a puppet for whoever writes the lines into his teleprompter – but Fed Chair Jerome Powell, who shrugged off such concerns last week, telling reporters that the reopening of the economy may lead to a single episode of price increases, but not a long-running bout of inflation.

Which, of course, is a lie and for what is really coming please re-read “We Are At The Early Stage Of The Biggest Cobra Effect In The History Of Economics.

* * *

Finally, for those who missed it, here are the main highlights from Berkshire’s nearly 6 hour Saturday tour de force annual meeting, (courtesy of Bloomberg):

  • SPACs, Robinhood, and day trading. We got plenty of opinions from Buffett and Munger on these trends that have gripped the markets over the past year. Buffett called the SPAC boom a “killer” when it comes to creating more competition for Berkshire’s dealmaking desires. But he acknowledged that the stock market has become more of a casino with all the day trading and it creates its own reality for a while until it all blows up. On Robinhood, Buffett acknowledged that gambling isn’t bad but taking advantage of that instinct isn’t the most admirable part of society.
  • Buffett made some big moves last year, dumping airline stocks and paring back bank bets. He acknowledged today that airlines could have had a different outcome on federal relief if they had a super-rich company as a top shareholder, but even then, he wouldn’t buy airlines given the slump in international travel.
  • Buffett admitted to a few missteps over the past year. Haven, the health care venture, failed eventually and Buffett said that they couldn’t really tackle the “tapeworm” of health care. He added that last year, amid the airline sales, wasn’t Berkshire’s greatest moment. Plus, it was a mistake to sell some Apple stock last year, he added.
  • We only got a potential new clue about succession. At one point, Charlie Munger mentioned that Greg Abel would maintain the culture at Berkshire. Abel has been seen as the most likely successor — he’s younger and controls a lot of Berkshire businesses. But no successor has been publicly announced, so that little comment might be picked up by a few investors eager to know who will take over.
  • Two shareholder proposals — one on climate change and one on diversity — got a lot of attention ahead of the meeting with proxy advisers Glass Lewis and ISS pushing back against some of Berkshire’s views. But both of those ended up being voted down at the end of the meeting.

And here is a detailed breakdown courtesy of @TheRationalWalk

Starting a thread for the Berkshire Hathaway 2021 annual meeting which has just started. $BRKA $BRKB

Abel and Jain are present on stage, although off to the side from Buffett and Munger.

Buffett is spending a few minutes talking about Jain and Abel to introduce them to the shareholders.

Very good to have all of them available for Q&A on the same stage.

Buffett is pointing out how the accounting rule change a few years ago distorted quarterly (and annual) earnings by including unrealized gains and losses from investments in net income.

This makes periodic earnings swing dramatically and misleads many investors.

Buffett has a slide of the top 20 companies in the world by market cap, 5 of the top 6 U.S. based which led into a pep talk on the United States, which he does so well.

“The system has worked unbelievably well.”

Now Buffett puts up a slide of the top 20 companies in the world from 1989. None of the 20 from 30 years ago are on the present list. Zero. And 13 of the 20 were from Japan!

The top company in 1989 had a market cap of $104 billion – Industrial Bank of Japan.

Buffett is directing this very good history lesson at new investors, but most will just see an old man talking about Henry Ford and disregard his statements. Too bad for them.

Buffett has a list of auto companies from the early 20th century that eventually went bust. Dozens of auto companies just starting with the letters “Ma”. Thousands of entrants. Incredible future. Most failed.

“It’s not as easy at it sounds.”

Referring to entering new and exciting markets that will change the world.

First question asks why Buffett was defensive early in the pandemic. A lot of hindsight bias in that question. Of course it wasn’t the right call … given the history that played out.

Buffett talks about his role controlling risk at Berkshire.

Buffett implies that if Berkshire was still in the airlines, they might not have received the aid that they did. That’s very interesting. He’s implying that Berkshire’s exit from the airlines in some way facilitated the fact that government bailed them out.

Next question is why Berkshire didn’t deploy more cash at the lows in March 2020. More hindsight bias in that question …

Interestingly, Buffett notes that the $20 billion minimum cash balance is going to be increased given Berkshire’s current size.

The day before the Fed acted, Buffett thinks that even Berkshire could not have issued debt. Markets were closed. He’s praising Powell for acting, praising Congress for acting. “It did the job.”

Buffett did not think that it was a “sure thing” that government would act as they did. He was unwilling to COUNT on government acting as they did in March 2020. He won’t rely on the kindness of anyone. And that’s how I like it, and I suspect most shareholders agree.

Munger says that the questioner is “out of their mind” to think that Berkshire could bottom tick the market in March 2020.

Q: Should long term Berkshire shareholders diversify into an index fund?

A: Munger prefers holding Berkshire to holding an index fund. Buffett recommends the S&P 500 index fund, has never recommended Berkshire to anyone.

Buffett “likes Berkshire” but suggests that people who don’t know anything about stocks or no “special feelings” about Berkshire should buy the S&P 500 index.

Buffett is going out of his way to not talk up Berkshire, which is fine, but I question the idea of suggesting the S&P 500 index at current valuations. I don’t think that does anyone any favors.

In the context of dollar cost averaging into index over a long lifetime, S&P 500 is OK, but the question was from a longtime shareholder asking if he should diversify into an index. It would seem nuts to sell BRK to buy the S&P 500, in my opinion. Munger seems to agree.

BREAKING: Munger would prefer to have a son-in-law who works at Chevron rather than as an English professor at Swarthmore.

Buffett doesn’t use the word “asinine” often, but tears into the ESG proposals which I assume will be discussed more fully during the formal shareholder meeting when the matter comes up for a vote.

“We don’t do things just because we have a department of this or a department of that … what’s important is what we are doing at BHE and the railroad…”

Buffett is really fired up talking about renewables and how you can’t turn off the coal plant until you have transmission from wind power to where it is actually used.

I can tell he’s pissed about Berkshire getting a bum rap on the environment.

Buffett turns over the question to Abel who has slides prepared regarding Berkshire’s environmental record at the energy group. Goes back to a 2007 conference where he discussed climate change, policy, innovation, etc… These guys are prepared for the ESG proposals…

Buffett asks “How many other energy companies were there” when Abel talks about a group of companies that made commitments regarding the Paris climate agreement. Abel says “none”.

Buffett: “We’d spend $100 billion on infrastructure” referencing Biden’s speech on Wednesday stating that we need more infrastructure spending.

If we get a 10% return, I’m all for it as well.

Good question on prospects for insurance when Buffett and Jain are no longer involved. Should Berkshire then focus on short-tail lines?

Jain talks about pricing for the unknowns unknowns – a good answer, but not really addressing succession.

Buffett: “We are willing to lose $10 billion in a single event” if paid appropriately for taking on a risk.

Sounds like a big number but not relative to Berkshire’s current size.

“Warren and I don’t have to agree on every damn thing we do.”

Charlie’s answer when asked about differences of opinion between him and Buffett on Costco and Wells Fargo.

Having Jain and Abel on stage interacting with each other is quite valuable for shareholders.

“In three more years, Charlie will be aging at 1% per year. No one is aging less than Charlie.”

Very funny, Warren …

Jain talking about GEICO and Progressive – very candid about Progressive as a formidable competitor and the relative advantages of GEICO and Progressive.

I can tell Jain doesn’t engage in BS. At all.

Buffett talking about $AAPL. Munger thought that Buffett selling a little was a mistake.

Charlie: “Yes”

Buffett is talking about how Apple products are indispensable to customers.

He’s right about some people picking their phone over a car if they had to choose between the two.

People are addicted to their damn phones.

Buffett talking about how interest rates are like financial gravity when asked about stock valuations.

Buffett looking for a clipping from a … paper WSJ … noting that the government sold 4 week t-bills at an average price of 100.000000. Free money for Uncle Sam.

Buffett notes that there has been an incredible change in anything that produces money because the risk free rate is now zero.

And of course he’s right. But for how long will this last? Is it “safe” to price stocks as if the risk free rate will be zero forever?

“The most interesting movie we have ever seen.”

Buffett characterizing the current economic environment.

Buffett: Low interest rates reduce the value of float substantially but Berkshire has options for investing that others don’t have.

As noted earlier today, Buffett shuns fixed income securities for this very reason.

Buffett notes that most SPACs have a two year limit for deploying cash. If you have a gun to your head, then you’ll buy something.

The meeting is half over and no Bitcoin, Dogecoin, Elon, or Crypto questions yet, unless I missed it.

Buffett says that he has roughly $70-80 billion that he would love to put to work.

$20 billion is not the minimum cash level anymore, as he alluded to earlier. It is probably double of that or more, but he has not specified.

Charlie: “Bernie Sanders has won.” Referring to the millennials having trouble rising as far as earlier generations. Um….

Buffett defends the logic of repurchases vs. dividends as a way of cashing out shareholders who want cash, leaving the rest of us alone to continue compounding.

Tax efficiently, I might add.

Munger: Critics are bonkers.

Amen.

I feel very good about not receiving a surprise dividend from Berkshire anytime soon.

Which I suspect will remain the case as long as Buffett and Munger are around since they don’t want to pay the taxes any more than I do.

Buffett stresses that he doesn’t speak for Berkshire when providing his personal views on taxes.

He punts on tax questions. Although he certainly has spoken in the past on taxes at prior meetings.

I like the new policy.

Munger: “I wouldn’t move across the street to save my children $500 million in taxes.”

But … “Who in the hell would drive out the rich people?”

The government owns “Berkshire Class AA stock”. They can take a percentage of earnings without owning any of the company. Indeed.

Buffett thinks that his wealth will accomplish more utility in private philanthropy run by smart people. It won’t make a “damn bit of difference” if it goes to the Federal government. I agree.

I suspect (or at least hope) that Buffett has spoken to the President about tax policy, especially the folly of even thinking about thinking about taxing *unrealized* gains annually, one of the more bonkers ideas to ever be proposed in Washington. Truly nuts.

Buffett: Valuation for Kansas City Southern deal would not be happening without interest rates at current levels. A combination would have a small impact on BNSF and Union Pacific.

Buffett: Biggest single “risk factor” never appearing in a company filing is a CEO who is personable and everyone likes but doesn’t know what he or she is doing.

CRYPTO/BITCOIN QUESTION!!!

Buffett dodges the question. He doesn’t want 400,000 people mad at him and 2 people happy.

Charlie: “You’re waving a red flag at a bull.” Rant follows on bitcoin and other things invented out of thin air … Disgusting, contrary to the interests of civilization…

Q: Why is BRK’s proposal for TX grid better than Musk’s proposal?

Abel: BRK’s proposal is the best they could come up with. If Elon’s proposal is better, then Texas should pursue it. Notes that battery solution isn’t as robust in terms of duration of power supplied.

Buffett: We know what we can do for TX grid. If someone can provide a solution cheaper and faster, they should do it.

Notes that Berkshire is backing proposal with $4 billion penalty if they fail to deliver.

Q for Ajit: Would you underwrite an insurance policy for Elon Musk’s mission to Mars?

“No thank you, I will pass.”

Buffett: Depends on the premium. And on whether Elon is on the mission or not. Skin in the game.

Ajit: “I would be very concerned about writing an insurance policy with Elon Musk on the other side.”

Q: Why aren’t Ted and Todd available to answer questions?

Buffett: Why would we make Ted and Todd available to talk stocks and share ideas with competitors?

Munger is convinced that China will allow companies to flourish. They “changed communism” because they didn’t want to stay poor. A remarkable change coming from such a place. And it has worked like gangbusters. Munger very complimentary.

This will trigger many people.

Q:What happened to the joint health care initiative with Amazon and J.P. Morgan?

Buffett: We learned more about health care in decentralized Berkshire subsidiaries and is one place where centralization could save some real money.

Very hard to change the overall system.

Buffett notes that when companies pay healthcare costs for employees, its an abstraction to employees. They don’t realize that they are really paying in the form of lower wages. And they like that.

Munger: “No kidding”

Buffett notes that U.S. pays 17% of GDP for healthcare while no other major country pays more than 11% yet we get poorer results.

Rational Walk: “No kidding”

Buffett on the failure of the joint healthcare initiative with J.P. Morgan and Amazon:

“We were fighting a tapeworm, and the tapeworm won.”

Question: What do Jain and Abel read on a daily basis?

90% of Ajit’s reading is related to insurance. Abel focuses on the operating businesses he’s in charge of.

Blocking and tackling.

Buffett: Nothing illegal or immoral about gambling on Robinhood but you can’t build a society around it. Not admirable. Will read prospectus.

Munger: “Waving a red flag at a bull.” Godawful. Deeply wrong. State lotteries: States pushed aside mafia in numbers game.

Q: Signs of inflation in subsidiaries?

Buffett: Very substantial. We are raising prices. People are raising prices to us. It’s being accepted. Take homebuilding. Cost up up up. Every day. cc @federalreserve

Buffett is clearly seeing inflation pressure. Doesn’t sound like he thinks it is “transitory”.

Who do you believe? Warren Buffett or Jay Powell and his army of phd economists?

I am paraphrasing, but the transcript will be posted soon, the video will be available, and I’d encourage everyone to read his statements on cost pressures verbatim.

“There’s more inflation going on that people would have anticipated six months ago or thereabouts.”

Listening to that exchange just now makes me want to take out a large thirty year fixed rate mortgage as soon as possible even if I might be paying a high price for a property.

Buffett notes that while rich people can change states relatively easily, a business with plants cannot change so quickly and must be very careful about the pension deficits in various jurisdictions.

Q: Biggest lesson over the past year?

Buffett: “Listen more to Charlie.”

Munger: “We are in uncharted territory.”

Buffett talks about the long term prospects for Berkshire over the next many decades, etc.

No break between the 3 1/2 hour Q&A session and formal meeting. Buffett is 90. Munger is 97.

The formal meeting is a foregone conclusion in terms of the outcome of the two shareholder proposals so I’ll conclude this thread here.

The full annual meeting is here.

The post “The Costs Are Up, Up, Up. We’re Seeing Substantial Inflation” Admits A Surprised Warren Buffett As Powell, Yellen See Nothing first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Get Ready For The Most Painful Inflation Since The Jimmy Carter Years Of The 1970s

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

If you are too young to have been alive during the 1970s, you might want to read up on that decade, because current economic conditions are starting to become eerily similar to what we experienced back then.  In the 1970s, an energy crisis caused tremendously long lines at gas stations all over the country.

In 2021, we don’t have a shortage of gasoline, but shortages of other key products are starting to cause very serious problems.  In fact, as you will see below, even the Biden administration is publicly admitting that there will be “supply chain disruptions” in the months ahead.  The 1970s also featured extremely painful inflation, and I certainly don’t need to tell you that prices have been rising very aggressively lately.  In fact, Bloomberg is using the term “skyrocketing” to describe the “upward trajectory” of commodity prices…

The prices of raw materials used to make almost everything are skyrocketing, and the upward trajectory looks set to continue as the world economy roars back to life.

From steel and copper to corn and lumber, commodities started 2021 with a bang, surging to levels not seen for years. The rally threatens to raise the cost of goods from the lunchtime sandwich to gleaming skyscrapers. It’s also lit the fuse on the massive reflation trade that’s gripped markets this year and pushed up inflation expectations. With the U.S. economy pumped up on fiscal stimulus, and Europe’s economy starting to reopen as its vaccination rollout gets into gear, there’s little reason to expect a change in direction.

Over the past year, the Federal Reserve has pumped more money into the financial system than ever before, and the U.S. government has been on a wild spending spree that makes Zimbabwe look fiscally conservative.

It was inevitable that this was going to cause rampant inflation, but the numbers that we are starting to see are so crazy they are difficult to believe.  A couple of weeks ago, Charlie Bilello posted a summary of how commodity prices have changed over the past year…

Lumber: +265%
WTI Crude: +210%
Gasoline: +182%
Brent Crude +163%
Heating Oil: +107%
Corn: +84%
Copper: +83%
Soybeans: +72%
Silver: +65%
Sugar: +59%
Cotton: +54%
Platinum: +52%
Natural Gas: +43%
Palladium: +32%
Wheat: +19%
Coffee: +13%

At this point, nobody can deny what is happening, and even the Biden administration is admitting that there will be “supply chain disruptions” and “transitory increases in prices”…

Council of Economic Advisers chair Cecilia Rouse said on this week’s broadcast of “Fox News Sunday” that they expect to see some “transitory inflation” as America is coming out of the coronavirus pandemic.

Anchor Chris Wallace said, “Can you guarantee with all this spending that we are not going to have a new round of overheating the economy and serious inflation?

Rouse said, “These are very serious concerns, and we know that coming out of an extremely deep recession that there are going to be bumps along the way. We expect that there is going to be supply chain disruptions. That will cause some transitory increases in prices.”

Biden administration officials would like for us to believe that this inflationary period will just be “temporary”, but exactly how do they plan to achieve that?

Do they have a plan to somehow pull trillions of dollars out of the system?

No, they are planning to borrow and spend trillions more.

In the 1970s, double-digit inflation made headlines for years on end.  Many people believe that we are well on the way to a return to such levels, but according to John Williams of shadowstats.com, we are already there.  In fact, if inflation was still calculated the way that it was back in 1980, we would already be in double-digit territory.

And for certain items, we are already seeing inflation that is off the charts.

For example, the price of corn is up more than 30 percent so far in 2021…

From tortillas to cornbread, some of your favorite corn-based dishes may go up in price late this summer.

Corn has been leading the rally among grain commodities, rising more than 30% in 2021, according to MarketWatch.

Corn is used in hundreds of different products at the grocery store, and so this is going to dramatically affect the food budgets of millions upon millions of American families.

Meanwhile, we continue to see more shortages start to emerge.  Last week, the mainstream media was freaking out over our new nationwide chicken shortage

A chicken shortage is taking place across the country, much of it fueled by the chicken sandwich craze at fast food chains such as KFC and Bojangles, which are having a hard time keeping up with soaring demand. Experts say February’s massive winter storm in Texas also contributed to gaps in the supply chain.

That shortage is supposed to be “temporary”, but analysts are warning that the current computer chip shortage could last until 2022.

But despite all of the problems that I just detailed, Americans are increasingly optimistic about the future.

In fact, one recent poll found that a whopping 64 percent of all Americans “are optimistic about the direction of the country”

Nearly two-thirds of Americans (64%) are optimistic about the direction of the country in the poll, which was conducted by Ipsos in partnership with ABC News using Ipsos’ KnowledgePanel.

And Americans are also extremely optimistic about the stock market.  If you can believe it, Americans now have more of their assets invested in the stock market than ever before

Individual investors are holding more stocks than ever before as major indexes climb to fresh highs. They are also upping the ante by borrowing to magnify their bets or increasingly buying on small dips in the market.

Stockholdings among U.S. households increased to 41% of their total financial assets in April, the highest level on record. That is according to JPMorgan Chase & Co. and Federal Reserve data going back to 1952 that includes 401(k) retirement accounts.

Most Americans seem to believe that happy days are here again, and the stage is set for an immense nationwide emotional meltdown once this “bubble of hope” inevitably bursts.

Anyone that believes that things are going to get better has a fundamental misunderstanding of the times in which we live.

We have just been through the most painful year for the U.S. economy since the Great Depression of the 1930s, and I know that most people would like to see things turn around, but that simply is not going to happen.

Very dark days are ahead, and those that are trusting Joe Biden to save America are going to be bitterly, bitterly disappointed.

***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 Get Ready For The Most Painful Inflation Since The Jimmy Carter Years Of The 1970s first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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Stimulus Addiction Disorder: The Debt-Disposable Earnings Pyramid

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

One glance at this chart explains why the status quo is locked on “run to fail” and will implode in a spectacular collapse of the unsustainable debt super-nova.

For those who suspect the status quo is unsustainable but aren’t quite sure why I’ve prepared a simple chart that explains the financial precariousness many sense. The chart depicts the two core elements of a debt-based, consumerist economy: disposable earnings, defined as the earnings left after paying for essentials which can then be used to service debt and debt.

In other words, if all the household earnings are spent on non-discretionary expenses (rent or mortgage, taxes, food, utilities, healthcare, etc.) then there is no money left to pay the interest and principal on a loan. Lenders consider this household uncreditworthy for the simple reason that their earnings cannot support the monthly nut of debt service (interest and principal).

Note the word earnings as opposed to income. Social entitlements such as Social Security are income but they are funded by taxes paid by those with earnings. (All of America’s social entitlements are pay as you go–the trust funds are PR fiction.) The investment income (interest) paid to owners of Treasury bonds is also paid by taxes on earnings.

All the interest and principal of the debt is ultimately paid out of earnings, either private-sector debt paid directly out of wages or public-sector debt paid out of taxes which are paid out of earnings.

The problem with servicing debt out of income is two-fold: one, earnings of the bottom 95% have been stagnant for decades, which means earnings aren’t actually rising in terms of the goods and services they can buy, and two, the cost of non-discretionary expenses (essentials) has been rising, especially the big-ticket costs such as housing, healthcare and higher education.

You see the problem: since earnings are flat and the cost of essentials is steadily rising, there are fewer disposable earnings left every month to service debt. This is a problem in an economy like America’s that depends on debt-funded consumption to fuel “growth.” No increase in debt means no increase in consumption which means no “growth.”

In response, the status quo–the Federal Reserve and the federal government–have played two financial tricks to maintain the illusion that earnings can support more debt: one, the Fed has lowered interest rates to near-zero, reducing the costs of mortgages (but not the sky-high interest rates charged on student loans or credit cards, of course) so the same stagnant earnings can support a much larger mortgage, and two, the federal government has increased its own borrowing to fund various stimulus programs, most of which are corporate welfare to monopolies and cartels in the form of subsidies, tax breaks, government contracts, etc. But as the consumerist economy weakens, the government is increasing its stimulus to households as well–all with borrowed money that is theoretically serviced by taxes on earnings.

Alas, these tricks are not sustainable. Interest rates can’t go lower than zero without bankrupting the banking sector, and federal spending is completely untethered from tax revenues.

The “solution” is obvious: borrow the money needed to service new and existing debt. This is the definition of a zombie economy comprised of zombie companies and zombie consumers that need to borrow more to sustain the illusion of solvency, i.e. that their disposable earnings are sufficient to service all their debts.

Notice that the debt-disposable pyramid is inverted: an ever-larger amount of debt is being piled on an ever-shrinking amount of disposable earnings. The trick of borrowing more to make the payments on the existing debt and fund new consumption results in a compounding of debt, not an arithmetic (linear) increase in debt: debt grows geometrically while the disposable earnings needed to service the debt remain stagnant.

The only “solution” left is Stimulus Addiction Disorder (SAD): the Fed must create trillions of dollars out of thin air to buy the Treasury bonds that are sold to fund trillions of dollars in stimulus–not once or twice, but from now on until the entire travesty of a mockery of a sham collapses under its own weight of flimflammery and fraud.

Artifice, illusion and simulacra are not real, and what’s not real vanishes back into the air whence it came. One glance at this chart explains why the status quo is locked on run to fail and will implode in a spectacular collapse of the unsustainable debt super-nova. SAD, to be sure.

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Violence In Lebanon Over Hyperinflation: The U.S. Could Be Next

While the United States has staved off the worst of hyperinflation, for now, Lebanon is not so fortunate.  Violence has erupted in the streets as people’s currency is worthless and they can no longer afford to buy food.

This is all a part of a larger agenda. The central banks and the ruling class want a digital dollar in order to permanently control people.  By intentionally collapsing the currency, they think people will line up to get their digital wallets and pittance from the state in exchange for total slavery, and sadly, some will.

If you want a glimpse into the future, however, let’s take a look at what’s happening in Lebanon…

Lebanon’s currency collapse has accelerated and with it the economy and people’s living standards, according to a report by ZeroHedge.  It appears the Lebanese people have had enough, and the widespread protests pose the biggest threat to the nation’s stability since the 1975-1990 civil war.

Lebanon is heavily reliant on imports, particularly of commodities and consumer goods, and recent price surges have worsened the situation for an already beleaguered population, now living under the specter of potential widespread hunger. This has all been exacerbated by their government and we will not be shielded from this here in the United States. Once the central banks cease to manipulate the monetary system they set up to enrich themselves, the facade falls and we could very well see similar situations in most corners of the U.S.

As if that’s not bad enough, the Lebanese Energy Minister Raymond Ghajar said that cash to fund power generation was running out, warning that the country may be plunged into darkness by April, according to a report by RT.

Prepare now, because this kind of currency meltdown may hit fast and without warning.  Banks won’t be able to supply you with currency and what you do have will be worth less than toilet paper.

Make sure you have barterable goods.  Those could be gold or silver, but could also be soaps, canned foods, water, and other necessities. Know how to barter and what will be of value if the current monetary system does crash because the solution that will be proposed will be further enslavement you will never be able to escape from.

Once this happens, it’s up to us to live outside their system and make it work or be destined to be a cog in the machine of control forever.

 

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Price of Food & Gasoline Goes Higher: The Trend Will Continue

The price of food and gasoline will continue to creep higher as inflation has an effect on the costs of necessities. Those who are already living paycheck to paycheck will not be able to escape the effects of the government’s response to the scamdemic.

Since the goal is impoverishment, the government knew exactly what they were doing when they shut down small businesses and allowed the big box stores to stay open as “essential.”

The reasons behind the increases are myriad but generally can be traced back to one or more consequences of the pandemic: Logjams in the world’s supply chain are one culprit. The United Nations Conference on Trade and Development found that global shipping dropped last year, the first decrease since 2009. “The short-term outlook for maritime trade is grim. Predicting the pandemic’s longer-term impact as well as the timing and scale of the industry’s recovery is fraught with uncertainty,” the organization warned. –NBC News

Phil Lempert, the founder of SupermarketGuru.com, warned that shoppers shouldn’t expect any relief on their wallets any time soon. “I think food prices are going to continue to increase for probably a good year, year and a half,” he predicted. “Our costs are going to go up for food production,” he said.

Another contributor to escalating food costs is the rising price of oil and gasoline. In order to supply grocery stores with food, suppliers must truck it in. That means there’s a higher demand for the current supply of gasoline. Once the scamdemic restrictions began to ease, the demand for gasoline bounced back more quickly than oil producers could increase production, leading to an upward march for prices, even with millions of people still not taking business trips or commuting to work.

TX Governor Now “Allowing” Texans To Be “Free”

Await the preplanned solution. It will be a digital dollar linked to a universal basic income in exchange for your total enslavement to the state. Does anyone still wonder why people all over the globe are realizing government is slavery?

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Bankers Warn: Weimar Hyperinflation Is Coming To The U.S.

We should all understand that inflation is coming after the economic destruction at the hands of the ruling class.  Now with the help of the central bank, the United States could very well end up looking eerily similar to the Weimar Republic soon.

One week ago, the Bank of America hinted at the unthinkable: the tsunami of monetary and fiscal stimulus, coupled with the upcoming surge in monetary velocity as the world’s economy emerges from lockdowns, would lead to unprecedented economic overheating, according to ZeroHedge.  But this was actually rather precedented considering history. BofA’s CIO Michael Hartnett reflected back on the post-WWI Germany and he said it was the “most epic, extreme analog of surging velocity and inflation following the end of war psychology, pent-up savings, lost confidence in currency & authorities” and specifically the Reichsbank’s monetization of debt, and extrapolated that this is similar to what is going on now.

There is, of course, another name for that period: Weimar Germany, and because we all know what happened in response and the result was massive genocide after Adolf Hitler came on the scene.

Of course, others have been less shy – in 1974, Jens Parsson wrote a fascinating, in-depth historical analysis of the hyperinflationary collapse of Weimar Germany under the original money printer, Rudy von Havenstein, “Dying of Money: Lessons of the Great German and American Inflations” one which we periodically remind readers is absolutely critical reading in preparation for what comes next. ZeroHedge

Who is responsible for hyperinflation? It’s always the ruling class (and the central banks, but I repeat myself).  ZeroHedge called it in a tweet from 2010:

If anyone has gone to the grocery store lately and not noticed that their bill is higher, it’s curious what delusion they are painting for themselves. Below is an easily digestible repost of Burry’s lengthy Saturday tweetstorm, which shows just how similar our world is to that prevalent in the years just before Weimar Germany saw the most explosive hyperinflation in history.

We are there now. The only question is when do we enter the exponential currency collapse phase. When we do, a universal basic income tied to your social credit score and your ability to be ruled and controlled will be instituted by the ruling class to fix the problems literally caused by the ruling class.  Wake up, people.  The time to figure this out was 6 months ago.

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Biden’s Presidency Will Be A Catalyst For Secession – And Perhaps Civil War

This article was originally published by Brandon Smith at Alt-Market.us. 

Over the past few months, I have written a handful of articles that discussed what would probably happen if Joe Biden actually entered the White House and launched his administration. My initial belief was that Trump would refuse to concede and that this would be a trigger for national chaos blamed on conservatives, but I have also noted that Biden’s entry is almost just as disruptive, as it sends a signal to the political left that it is “open season” on anyone that disagrees with their ideology.

Of course, conservatives are not going to simply sit still and be purged and abused, they are going to strike back, and this sets the stage for a number of events and outcomes, some of which are completely unpredictable, even for establishment globalists.

First, though, we need to address how Biden and the globalists are going to create chaos so that they can then demand their own brand of “order”.

In my article ‘A Biden Presidency Will Mean A Faster US Collapse’, published in October, I outlined why the ongoing economic crisis will accelerate in the wake of a Biden takeover. More specifically, I predicted that Biden would implement a federal covid lockdown, probably within the first year of his presidency, similar to the Level 4 lockdowns implemented in Europe and Australia. Biden may lure Americans into complacency with promises of “relief” and fewer restrictions in his first couple of months, but he will then use the rather convenient news of “covid mutations” to bring in even harsher mandates.

Such a lockdown, if Americans submit, would mean an even larger spike in unemployment, a loss of hundreds of thousands of small businesses as well as a huge loss in tax revenues for some states (mostly blue states).

Another scenario is that Biden leaves the lockdowns in the hands of state governments, but pursues a nationwide program for medical passports. The passport, of course, would require people to take the vaccine and accept contact tracing apps on their phones; meaning 24/7 surveillance on the public. At least 30% of Americans have said in polling that they will refuse the vaccines outright. Another 60% have said they are wary of the vaccines and need proof of their effectiveness. So, the medical passports will lead to millions of people being denied participation in the mainstream economy and collapse happens anyway.

In other words, the elites are going to try to hold the economy hostage while telling the public that if we don’t accept medical tyranny it will be OUR FAULT if the system breaks down.

The economic crisis, however, started long before the pandemic, long before Biden, and long before Trump. It has been building since the credit crash of 2008, and in the 12 years since, the Federal Reserve and other central banks have been pumping out trillions in stimulus while encouraging non-stop debt accumulation. Right before the beginning of the pandemic, the US was suffering from the highest corporate debt in history, the highest consumer debt in history as well as the highest national debt in history.

What we are witnessing right now is the final phase of a collapse scenario that was more than a decade in the making, and Biden is about to help finish the job.

Biden will no doubt seek to hyperinflate the dollar in the name of offsetting the losses and keep things afloat for a short time, but the real agenda will be to trigger price spikes in goods as well as eventually killing the dollar altogether. No amount of stimulus will stop the crash that has already been set in motion; the bailout measures from this point on are Kabuki theater, a show put on for the masses to make us believe that the government and the banks “did everything they could” to save us. The elites have no intention of stalling or stopping the collapse; their “great reset” demands it.

One’s initial assumption would be that Biden would then take the blame for the economic crisis, but it appears that the establishment is going to set up a Herbert Hoover narrative and lay all the blame squarely on Trump and conservatives. In the past I have noted that Trump’s trajectory was very similar to Herbert Hoover’s, in that he was a business mogul and Republican that pushed for corporate tax cut policies and also extensive tariffs.

Hoover also served only one term, taking the blame for the crash of 1929 and the advent of the Great Depression, even though the crash was primarily caused by the Federal Reserve’s ultra-low interest rates and easy money, followed by a series of rate hikes (a fact which former Fed chairman Ben Bernanke would later openly admit to in 2002). This launched the three-term dominion of Franklin D. Roosevelt, one of the most communistic presidents in our history and the initiator of socialist programs which have since buried the American public in Quadrillions of dollars in unfunded liabilities.

Biden’s latest statements indicate he will be introducing numerous executive orders to “correct the mistakes of the Trump administration”, thereby implanting the idea that whatever happens next is Trump’s fault. The “Reset” globalists and their central banking partners will have to bring down the US economy very quickly under a Biden White House. Why? Because if they wait, or if they try to drag out the collapse and the worst happens a few years down the road, Biden and the globalists will get the blame. They MUST crash the old world order now so that Trump and conservatives can be saddled with the consequences.

The strategy seems to be this: Demonize conservatives as much as possible as quickly as possible so that our purge from social platforms can be rationalized. When we are incapable of defending ourselves in the public sphere because we have been removed from the internet, the establishment and leftists can blame us for everything going wrong. The public would have no access to any other points of view or contradictory facts and evidence because the alternative media will be gone. We become the monsters, the bogeymen, and the source of all American suffering.

We didn’t fall into the trap of supporting martial law measures during the BLM riots, so this must be Plan B.

Will their plan work? I doubt it. Just as the globalist rollout of the pandemic lockdowns and medical tyranny is failing to gain traction in the US as huge numbers of people refuse to take the questionable vaccines, I suspect millions upon millions of Americans are already savvy to the propaganda schemes of the establishment and will not buy-in. But, that doesn’t mean the elites won’t try it anyway.

In early November in Issue #47 of my newsletter, The Wild Bunch Dispatch, I war-gamed the Biden scenario extensively and concluded that if he was to enter the White House it would have to be followed by a massive erasure of conservative media platforms from the internet. I stated that:

If Biden does indeed enter the White House and take control of the presidency, expect certain consequences right away: A complete full spectrum censorship campaign of conservative news sources will be undertaken by tech companies and government. There is no way Biden and the democrats could keep control of the situation while conservatives are able to share information in real-time. Do not be surprised if web providers suddenly start kicking conservative sites off their servers, just as Bitchute (a YouTube alternative) was kicked off their server for 24 hours on election night.”

This is already happening, and Biden hasn’t even stepped foot into the role of “commander and chief” yet. The coordinated effort by Big Tech to remove Parler, a Twitter alternative, from the web completely was not all that surprising. Luckily, Parler will be back up and running by the end of the month, but the censorship campaign is only going to get worse from here on. Biden WILL support and defend the censorship efforts by Big Tech and the fascist marriage between government and the corporate world will be complete.

To summarize, the globalists have to silence us before they can effectively demonize us. The truth is on our side; facts and logic are on our side. They can’t win the war of ideas if we are allowed to speak; this is why they are so desperate to silence us.

Sweeping gun control measures will be issued by Biden, but only after the conservative purge from the internet is close to finished. If conservatives are isolated from one another in terms of communication, this makes it harder to organize a defense against aggressive gun confiscation. Biden will most likely try to exploit Red Flag gun laws first, this would allow federal agencies to declare anyone to be “a threat to public safety” without due process, and have their guns taken away preemptively.

There is an obvious outcome to all of these actions and I don’t think it’s far fetched to suggest that conservative counties and states will demand secession. At the very least, conservatives are going to continue to relocate to red states and red counties, just so they can continue to do business and make a living without government interference. There’s no way that most conservatives controlled states or counties are going to submit to federal lockdown mandates or medical passports, and economies in conservative regions are going to remain stable because of this while blue states are going to crumble.

Biden will seek to retaliate against conservative controlled areas of the country in response.

There comes a point when it is impossible for those that value freedom, logic, and reason to live side-by-side with those that are irrationally obsessed with control. The American constitutional framework in particular was designed to prevent collectivism from overriding individual liberties, but if the system is sabotaged through subversion and the Bill of Rights is violated, then maintaining the system is no longer plausible.

The best option for a number of reasons is to separate. Secession is often referred to as “running away” from a cultural problem, but this is an ignorant way of looking at it.

We are reaching a stage right now in the US where it will be virtually impossible to voice political concerns without risking retribution. If you are a conservative, you will be targeted.

If conservatives and moderates migrate away from leftist controlled areas and congregate in red states or red counties, then it will be difficult for leftists to attack them for voicing their views. If your employer is a conservative, then he’s not going to care if a leftist mob demands you be fired. If you own a business in a conservative community, then the people that live there will continue as your customers regardless of what leftists say about you.

Conservatives and moderates MUST start to physically separate from the political left. We must remove ourselves from the blood-sucking parasites that have attached themselves to us. This allows us to remain free to think and speak as we like, and it takes all power away from leftists to hurt us by disrupting our means of making a living.

Secession is a more extreme measure, but it WILL become necessary if leftists refuse to accept that we are no longer participating in their games of fear and subterfuge. Leftists are collectivist by nature, and collectivists see people as property. Walking away is not an option in their minds. So, though we might successfully separate, this would only be the beginning of the battle.

The important thing is to first make sure that conservatives KNOW that there are places they can go where their civil rights are valued and defended. If conservatives feel completely isolated and alone, many will give up, go dark, and pray they are not discovered. This is unacceptable.

The advantage of secession is clear; by separating, conservatives force the enemy to come to them, on the ground they have prepared. The leftists will be the aggressors by default. They will try to present the situation otherwise, but it won’t matter. We will have the moral high ground as well as the superior strategic position.

There are multiple narratives that will be used to demonize the secession movement beyond the terrorism angle. In particular, I think the government and the media will try to tie secession to “foreign entities”. In other words, they will claim the secession movement is being funded or supported by Russia, or some other foreign power. This is what almost every government in history has done when faced with a viable secession or rebellion that could threaten their control – They accuse the people that want to separate of being agents for evil outsiders.

It doesn’t matter.

Conservatives cannot live with leftists, their cultism and zealotry have made it impossible. And, we will not live under a globalist tyranny built around their reset agenda. Separation allows us to consolidate for defense and protects us economically. It is the only way to ensure that we remain free.

The globalists and the leftists will try to stop us; they can’t help themselves. They are insane, after all. This will lead to a war many of us have been expecting for quite some time. At the very least, with separation and secession, we will be in the best possible position to stop them. If we remain isolated from each other, the fight will be over before it even begins.

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“655 people have $4 trillion in wealth. 200 million can’t cover a $1000 expense.”

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

The COVID pandemic has caused the gap between the ultra-wealthy and the rest of us to grow larger than it ever has been before.  Thanks to the hyperinflationary policies of the Federal Reserve and our politicians in Washington, stock prices have soared to unprecedented heights in recent months.  This pushed the wealth of the uber-rich to dizzying heights, but for the rest of the country, 2020 was an unmitigated nightmare.

As I have discussed previously, one survey found that 2020 was a “personal financial disaster” for 55 percent of all Americans.  More than 110,000 restaurants shut down permanently last year, Americans filed more than 70 million claims for unemployment benefits, and tens of millions are potentially facing eviction in 2021.  But even though we are mired in the worst economic downturn since the Great Depression of the 1930s, those at the very top of the economic pyramid are laughing all the way to the bank.

Earlier today, I came across a tweet from Sven Heinrich that really struck an emotional chord with me…

655 people have $4 trillion in wealth.

200 million can’t cover a $1000 expense.

I certainly don’t have any problem with people gaining wealth by working extremely hard and making society a better place in the process.

But most of the people at the very top of the economic pyramid only increased their wealth in 2020 because the powers that be decided to open up the firehoses and rain obscene amounts of money on them.

That isn’t right.

As a result of the deeply flawed policies that were implemented because of the COVID pandemic, the gap between “gains in financial assets and the health of the economy” was the largest ever recorded last year…

But as stock market indexes staged a huge rebound from the lows seen in March when the pandemic first hit, the gap between the wealthy and the poor extended an already widening trend to historic proportions.

A report via BofA Global Research published on Friday notes that a measure of the differential between gains in financial assets and the health of the economy hit a record at 6.3X in 2020.

My regular readers are probably sick and tired of hearing me say that the stock market has become completely divorced from economic reality, and now we have a hard number which backs up what I have been saying all along.

As I write this article, the Dow is sitting just above 31,000, and that is utterly absurd.

If the Dow were to fall to 15,000 it would still be overvalued.

Meanwhile, a brand new survey has discovered that only 39 percent of all Americans “would be able to cover an unexpected $1,000 expense”

Just 39% of Americans would be able to cover an unexpected $1,000 expense, according to a new report from Bankrate.com.

That’s down from 2020, when 41% of people said they could cover a $1,000 cost with their savings.

If only 39 percent of Americans currently have enough money for such an unexpected expense, that means that 61 percent of Americans do not.

According to Google, the current population of the U.S. is 328 million, and 61 percent of 328 million is just over 200 million.

So that is where Sven Heinrich got that figure from.

200 million of us have so little money that we are just barely scraping by from month to month.

And according to one of Walmart’s top executives, many of their customers do not expect “any kind of speedy recovery”

Walmart Chief Customer Officer Janey Whiteside said Tuesday that many of its shoppers don’t expect the economy to quickly bounce back from the coronavirus pandemic.

Almost half of customers surveyed in November told Walmart that they were worried about the current health of the economy, she said when speaking at the virtual National Retail Federation conference. She said 40% said they didn’t expect “any kind of speedy recovery.”

Unfortunately, those that are pessimistic about how the U.S. economy will perform in 2021 are right on target.

It is going to be a very painful year.

Of course, it isn’t just consumers that are concerned about the year ahead.  Small business optimism is falling as well

A popular gauge of small-business confidence in the US sank to a seven-month low in December as stricter lockdown measures and climbing daily case counts cut into economic activity.

The National Federation of Independent Businesses’ index of small-business optimism fell 5.5 points last month to 95.9, according to a Tuesday release. The reading lands below the average index value since 1978 of 98 and marks the lowest level since May. Economists surveyed by Bloomberg expected the gauge to dip slightly to 100.2.

Americans generally tend to be quite optimistic about the future, but looking ahead there just aren’t any reasons to be optimistic about the U.S. economy in 2021.

The COVID pandemic continues to get even worse, new lockdowns have been instituted all over the country, our federal government is in a state of chaos, and there will inevitably be more rioting, looting, and civil unrest in the months ahead.

Plus, there will undoubtedly be some additional unexpected surprises that most people are not anticipating.

Before I wrap up this article, there is just one more thing that I wanted to mention.  A programmer in San Francisco named Stefan Thomas is the proud owner of 7,002 Bitcoin, but he can’t access his fortune because he forgot the password, and he only has two more tries before he is locked out permanently…

Take Stefan Thomas, a programmer in San Francisco, who told The New York Times that he has 7,002 Bitcoin tucked away — currently worth about $236 million, nearly a quarter billion dollars — but that he has no idea how to access it and can only guess two more passwords before being locked out forever.

Even setting aside the long term prospects for crypto, the key message of these horror stories is that taking digital finances into your own hands is a huge risk if you can’t manage your passwords.

Can you imagine how you would feel if that happened to you?

Sadly, it could be argued that essentially the same thing is happening to the nation as a whole.

America has “forgotten the password” to what once made us so great, and we are running out of chances.

Let us hope that we wake up before it is too late because time is not on our side at this point.

***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.

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The United States Has Become A Banana Republic

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

If we continue destroying the U.S. dollar at our current pace, toilet paper will eventually be more valuable than U.S. dollars.  I know that sounds absolutely crazy, but it is true.  Once the COVID pandemic hit the United States, those that control the levers of power in this country decided to go “full Weimar” and they never looked back.

As a result, the size of our money supply is rising at a rate that would have been unimaginable just a few short years ago.  To illustrate what I am talking about, I would like for you to check out this chart that was posted on Twitter by James Turk.  As you can see, M1 was up by more than 50 percent in 2020.

We’ve never had a year like that in all of U.S. history.  What we are doing is literally insane, but most Americans aren’t even aware of what is happening because the mainstream media isn’t talking about it.

If you are not familiar with “M1”, here is a definition that comes from Investopedia

M1 is the money supply that is composed of physical currency and coin, demand deposits, travelers’ checks, other checkable deposits, and negotiable order of withdrawal (NOW) accounts. M1 includes the most liquid portions of the money supply because it contains currency and assets that either are or can be quickly converted to cash. However, “near money” and “near, near money,” which fall under M2 and M3, cannot be converted to currency as quickly.

When new money enters the system, every dollar that you are currently holding becomes less valuable.

And if your paycheck does not rise at the same rate that the money supply is rising, that means that your paycheck becomes less valuable as well.

It is helpful to think of our money system as a pie.  When more dollars are added to the pie, your share of the pie steadily becomes smaller.

So who does benefit when the pie is expanded?

The ultra-wealthy do, and I will discuss that more below.

But first, I wanted to share another chart with you.  The first chart from James Turk showed how M1 has been rising on a percentage basis, and this next chart which comes directly from the Federal Reserve shows how M1 has been rising on an absolute basis…

Just look at that for a moment.

It truly is breathtaking.  M1 has literally been rising at almost a vertical rate, and it makes all of the inflation that has come before look almost meaningless.

This is why the stock market keeps hitting record high after record high.  Stocks started to crash when COVID first started to spread in the United States, and the Federal Reserve decided to do whatever was necessary to rescue the markets.  The “unprecedented” response that we witnessed ended up being “a key driver of billionaire wealth” in 2020…

A key driver of billionaire wealth concentration was the unprecedented monetary policy response to stabilize financial markets in the early days of the pandemic, which spurred the stock market’s gravity-defying rise. When Wall Street was on the verge of panic in March, the Federal Reserve intervened with the promise of low rates and an open-ended liquidity spigot.

In addition, Congress just kept passing “stimulus package” after “stimulus package” in a desperate attempt to “rescue” the economy.

But in the process, they borrowed and spent trillions of dollars that we did not have, and that also helped to fuel our transition into hyperinflation.

The good news is that hyperinflation is not showing up at the grocery store or at Walmart yet.  Eventually, it will happen, but so far consumer prices are just rising at a pace that is quite a bit brisker than usual.  Where we are seeing hyperinflation is in stock prices, high-end real estate in rural and suburban areas, and in other areas of the economy that the ultra-wealthy have been pouring their money into.

Despite the fact that we just endured one of the worst economic years in U.S. history, 2020 was actually a banner year for billionaires

Between roughly mid-March and Dec. 22, the United States gained 56 new billionaires, according to the Institute for Policy Studies, bringing the total to 659. The wealth held by that small cadre of Americans has jumped by more than $1 trillion in the months since the pandemic began.

According to a December report issued jointly by Americans for Tax Fairness and the Institute for Policy Studies using data compiled by Forbes, America’s billionaires hold roughly $4 trillion in wealth — a figure roughly double what the 165 million poorest Americans are collectively worth. The 10 richest billionaires have a combined net worth of more than $1 trillion.

Last year the rich got a whole lot richer, and the poor got a whole lot poorer.

As I discussed the other day, 2020 was a “personal financial disaster” for 55 percent of all Americans.  The year ended with close to 20 million Americans still receiving government unemployment benefits, and poverty and homelessness have been exploding all around us.

In some cases, people were waiting in lines that were up to 12 hours long just to get a couple of bags of groceries at food banks around the nation.  We haven’t seen anything like this since the Great Depression of the 1930s, and many are expecting things to get even worse in 2021.

And with each passing day, more businesses are closing and more Americans are being laid off.

The retail sector has been hit particularly hard.  The following comes from Axios

Malls are going belly up. Familiar names like J.C. Penney, Neiman Marcus and J. Crew have filed for bankruptcy. Increasingly, Americans’ shopping choices will boil down to a handful of internet Everything Stores and survival-of-the-fittest national chains.

And what we have experienced so far is just the tip of the iceberg.  One recent report projected that “100,000 brick-and-mortar U.S. retail stores will close by 2025”

A research report from UBS predicts that 100,000 brick-and-mortar U.S. retail stores will close by 2025, in a trend that started before the pandemic and has accelerated amid coronavirus-related shutdowns.

Our national landscape is already littered with abandoned stores and restaurants, and they are telling us that it is only going to get worse.

What is our country going to look like as this process plays out?

Of course our authorities will just respond to every new crisis by printing even more money.

That is what they did down in Venezuela, and now just about everyone in Venezuela is a millionaire.

But most of those “millionaires” are living in crushing poverty because the money is absolutely worthless.

Sadly, many other countries are doing the same thing that the U.S. is doing, and so this hyperinflationary spiral is not likely to end any time soon.

But let there be no doubt that we are also in a global economic depression.  Global GDP is about 8 percent lower than it was before the pandemic started, and the outlook for 2021 does not look promising at all.

If you think that there is a way for this economic story to end well, just go back and look at the M1 chart from the Federal Reserve one more time.

Every other time this has been tried in human history, the story has ended badly.

Our story is going to end badly too, and every American needs to get prepared to survive in a very painful hyperinflationary environment.

***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.

 

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For 55 Percent Of Americans, 2020 Has Been “A Personal Financial

This article was originally published by Michael Snyder at The End of the American Dream. 

One of the big reasons why so many Americans are angry about the size of the “stimulus payments” in the COVID relief bill that Congress just passed is because this year has truly been a “financial disaster” for millions upon millions of people.  More Americans than ever before are just barely scraping by from month to month, and $600 is just not going to go very far.

In 2020, small businesses have been getting slaughtered by the thousands, millions of Americans are in imminent danger of being evicted from their homes, and more than 70 million new claims for unemployment benefits have been filed since the COVID pandemic first started.  The U.S. has plunged into a brutal economic depression, and most of the country is desperately hoping that the federal government will do more to bail them out.

Of course, the truth is that we can’t actually afford another 900 billion dollar “stimulus package” on top of all the other “stimulus packages” that were already passed this year.

We are already 27.5 trillion dollars in debt, and all of this reckless spending is putting us on a highway to hyperinflation.

But most Americans don’t really care that we are literally destroying our national finances.  Most people are in desperate need of money, and the vast majority of them want checks from the government as soon as possible.

A OnePoll survey that was just released asked Americans about the current state of their finances, and that survey discovered that a whopping 55 percent of us consider this year to be “a personal financial disaster”

While there is no question 2020 has been an unparalleled health challenge, many are not losing sight of how devastating the year was for their wallets as well. A new survey finds over half of Americans (55%) consider 2020 a personal financial disaster.

That is over half the country!

And for those that are employed, that same survey found that 62 percent are planning to take on a second job in 2021 in an attempt to make ends meet…

Among employed respondents (59% in total), seven in 10 say they need a raise at their job in order to make ends meet. Sixty-two percent plan on taking on a second job in 2021 to meet their financial goals next year.

That number can’t possibly be correct, can it?

Of course there aren’t that many jobs to go around.  Already, there are millions upon millions of Americans that can’t find a “first job”.  As I discussed the other day, we have got unemployed workers sleeping in lawn chairs or sleeping in their own vehicles because that is all they can afford at this point.

We haven’t seen anything like this since the Great Depression of the 1930s, and this latest wave of lockdowns is making things even worse.

With so many Americans financially hurting, it shouldn’t be a surprise that millions of households are getting behind on their rent and mortgage payments

One-in-seven renters with family incomes from $35,000 to $100,000 were not current on their rent in November. The overwhelming majority of these renters – 79.9% — expected to face eviction within two months. Similarly, 9.6% of homeowners with a mortgage were not current on their mortgage in November. And 56.1% of those homeowners expected they will be foreclosed on in the subsequent two months.

Congress keeps extending moratoriums on rent and mortgage payments, and that has been financially devastating for landlords and mortgage holders.

At some point, the moratoriums must end, and when that happens we are going to see a tsunami of evictions that will be absolutely unprecedented in U.S. history.

Meanwhile, many Americans are going very deep into debt in a desperate attempt to keep themselves afloat financially…

More than one-third of households with incomes between $35,000 and $100,000 borrowed from credit cards, other loans as well as from friends and family to pay for their current expenses in November. Soon, debt payments will come due, burdening families that still suffer from long-term unemployment and added health care costs. This could mean rising credit default rates as well as spillovers of economic pain to other households, from who people borrowed to pay their bills.

If economic conditions were to “return to normal” in 2021, most Americans would be able to weather this financial storm just like they did in 2008 and 2009.

But things are not going to return to normal next year.

Instead, this new wave of lockdowns is going to cause thousands of more businesses to close and will force millions more Americans on to the unemployment rolls.

What we are doing to our small businesses is absolutely criminal.  At this point, small business revenues are down more than 32 percent nationwide since the month of January

Small business revenues have also taken a hit nationwide. The national average is a decrease of 32.1 percent in small business revenue since January. Washington D.C. had the worst loss in the nation at 61.6 percent. Oregon small businesses lost 16.3 percent. Illinois small businesses saw 39.2 percent decline in revenue since January.

Every day, more small businesses are closing up shop permanently.

Millions of hopes and dreams have been brutally crushed, and there is nothing that our politicians can say or do that will bring those businesses back to life.

If you have lost a business or a job this year, then that would definitely qualify as one of the “personal financial disasters” of 2020.

And as you have seen in this article, you are far from alone.

Most of the nation is deeply hurting, and the road ahead is only going to get more challenging.

In the short-term, “stimulus payments” from the federal government will definitely help tens of millions of suffering Americans.

But of course every additional dollar that our government borrows and spends just makes our long-term problems even worse.

A national economic meltdown has begun, and our politicians will try lots of things to mitigate the damage, but all of their “solutions” will only help temporarily.

This is going to be an exceedingly dark chapter for America, but most Americans still do not understand the true nature of the crisis that is now unfolding all around us.

***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 For 55 Percent Of Americans, 2020 Has Been “A Personal Financial first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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PAIN COMETH!

This article was contributed by Portfolio Wealth Global.

No, we don’t think hyperinflation is coming!

How can inflation bazooka higher, when half of young adults live with their parents in 2020 and 38% of Americans are consumed with thoughts about how to make ends meet?

This doesn’t mean that gold and silver can’t or won’t rally in 2021 (inflation has been below 2% for over a decade), since gold responds to real yields, which are measured by 10-yr yield, subtracted by CPI. So even with CPI at current levels (disinflation), as long as rates go down, that negative real yield helps gold.

Silver is an even stranger cat since it responds best to dollar weakness and, boy, do we have plenty of that…

Why are we focusing on pain, though, if vaccines are approved and if the beginning of the end for this unique period is ahead of us? Well, the price that most small businesses paid to indirectly help, by supposedly slowing the spread of the virus to the people at risk of dying of Covid-19 has been huge.

One day you woke up and the government told you that your baby – your source of income, your pride and joy, the business you took time, effort, thought, sweat, and sacrifice to bring to the marketplace – had to remain closed.

Small businesses received minimal assistance and we’ll only learn just how horrible the situation is in 2021.

This is because the dust will settle, restrictions will ease and we’ll see who is left standing.

Courtesy: Zerohedge.com

Bond investors, as you can see, bet on technology advancements and on disinflation. No one buys a negative-yielding bond for the income, of course. The only way to profit from this – and there’s a large incentive to capture gains – is to sell the bond for more than you paid for it.

Appreciation occurs when yields fall. The price of the underlying asset (the bond) shoots up.

Obviously, QE does not create inflation, as was previously assumed, since we’ve had over a decade of it and the FED keeps missing its target. The FED has little control over inflation, but we, the people, do.

What are the implications of so many Americans in this poverty-stricken position?

  1. With 36% of voters believing in fraud and with roughly 80% of Republicans believing foul play, any hardship will serve as a catalyst for more division.
  2. Government will play an even bigger role in the lives of most Americans, who stand to become even more dependent upon it.

It’s time to address this issue, once and for all.

Courtesy: Zerohedge.com

We do not see how the unsustainable bullish stance in the stock market, coupled with the genuine distress of most Americans, continues to remain decoupled for another year.

The fundamental problems in the U.S. economy are bigger than what a central bank can address and, frankly, they’re not only more serious than what the government has to offer to “solve” them, but they’re being addressed with all of the wrong tools.

Nanny state capitalism is not a plan; Americans need to be inspired to get up and figure it out!

Pain cometh in 2021.

The post PAIN COMETH! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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Do You Really Think the Empire Will Sacrifice the Dollar to Further Enrich Billionaires?

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

As for stock markets–the devil take the hindmost.

Let’s keep it simple: US dollar up, stocks down. US dollar down stocks up. Stocks up, billionaires get richer. Since that spot of bother in March 2020 when the US dollar (USD) soared and stocks cratered, the USD has been in a free-fall, boosting the wealth of America’s Robber Barons and various other skimmers, scammers, and other undeserving scoundrels.

Chief among the undeserving scoundrels feasting on the decline of the USD are global stock markets which have soared not because revenues and profits are soaring but because the USD has plummeted.

The Federal Reserve is widely worshiped as the Ultimate Power in the Universe, a kind of financial Death Star. The Fed has seen fit to crush the USD to further boost the wealth of billionaires and save global stock markets from their well-deserved ruin. Saving the world, ho-hum, just another day for the god-like Fed.

But something doesn’t quite add up here, for as the all-powerful Fed devalues the US dollar, it destroys the exorbitant privilege of America’s reserve currency. What’s the exorbitant privilege? Simply this: the owner of a reserve currency can create “money” (USD) out of thin air and trade it for autos, oil, semiconductors–real-world goods that were not created out of thin air. Rather, all these real-world goods required tremendous investment and significant costs to be produced and transported.

The exorbitant privilege is something for nothing–a remarkably good deal. And yet the universal expectation is the Fed is going to throw that privilege in the dumpster by pushing the USD into the ground, first by devaluing it relative other currencies and then by letting hyper-inflation destroy what’s left of its purchasing power.

It is not an exaggeration to say that the ability to create “money” out of thin air and trade it for real-world goods is the foundation of America’s global power, what I call the Imperial Project. The same can be said for the other reserve currencies, the euro and the yen. (Since China’s currency is pegged to the US dollar, it is not a true reserve currency; it is only a derivative of the USD.)

So let me get this straight: the Fed is consciously choosing to undermine and then lay waste to the foundation of American power–just to boost Robber Barons and zombie global stock markets? I don’t think so. That the Fed would pursue a suicidal destruction of the purchasing power of the dollar just to boost stock markets and billionaires–that beggars belief.

The Fed is not the Empire, it is the handmaiden of the Empire. The Fed’s dual mandate– for PR purposes, stable employment and prices–is actually balancing the conflicting demands of a global and domestic currency–Triffin’s Paradox writ large.

The inherent problem with a reserve currency is that it must meet global economic needs and domestic needs, and these are intrinsically in conflict. America’s billionaires and pension funds want the US stock market to loft higher on the back of a declining USD, but that diminishes the global purchasing power of the USD–a trend heading for economic ruin.

The Fed has had numerous reasons to weaken the dollar since March: a desperate need to “save” global stock markets from well-deserved collapse, and an equally desperate need to keep the dollar weak so global debtors with loans denominated in dollars can manage to service their trillions in USD-denominated debts.

But drawing a line extending this short-term necessity all the way to hyper-inflationary oblivion is a grave misreading of the Empire’s need for the exorbitant privilege of a strong dollar.

The Fed is about done with its “rescue” of billionaires and global markets and debtors. Against virtually all expectations of seers, pundits, gurus, etc. the USD is about to start serving the Empire in its foundational role. As for stock markets–the devil take the hindmost.

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