Historians of the future, if there are any intelligent ones among them, will surely be aghast at our astounding blindness & ignorance. Congress enacted decades worth of spending in just two years and figured everything would be fine. The printing presses at the FED ran at full tilt. No one cared to do anything about the trade snarls or supply-chain breakages. And here we are.
Our elites had two years to fix this unfolding disaster and they did nothing except make it all worse. Now we face terrible, grim, grueling, exploitative inflation, at the same time we are plunging into recession again, and people sit around wondering what the heck happened.
I’ll tell you what happened: the Ruling Class destroyed the world we knew; and it happened right before our eyes. And here we are.
Last week, the stock market reeled on the news that the European Central Bank will attempt to do something about the inflation wrecking markets. Of course, this sent the financial markets panicking like an addict who can’t find his next hit of heroin. This week already began with more of the same, for fear the FED will be forced to rein in its easy-money policy event further by raising interest rates. Maybe or maybe not; but a recession now seems inevitable regardless.
Bad news seems to be everywhere. Even in the midst of very tight labor markets and very low unemployment (mostly mythical when you consider labor force participation), companies have once again started laying off workers. Why? To prepare for recession and the prospect of even more economic chaos ahead.
High-flying tech giants are curbing their enthusiasm too. Facebook apparently got tricked into paying big time news outlets to let FB users have free access to articles — no doubt to those that reinforced government propaganda, since Mark Zuckerberg volunteered his entire company to be messengers for the regime back in 2020.
This might as well be the new theme of American life. No more charity. No more kindness. No more something for nothing. In inflationary times, everyone only grasps at more for less. Morality takes the back seat and generosity dries up. It’s every man for himself as this only gets more brutal as it unfolds.
There was somewhat of a psychological break last Friday on the CPI news. It was not better than last month. It was not even the same as last month. It was worse: 8.6% inflation year-to-year; the highest it has been in 40 years. Honestly, everyone sort of knew this already in their heart of hearts but there is something about the official announcement that codified it.
However, let’s stack the data at two years rather than one year. What does it look like? It comes in at 13.6% and we haven’t ever really seen anything like that before. It is truly starting to bite as never before. Gas is now above $5 and average monthly rents across the country have skyrocketed. Wages in the job market have also stopped rising. On the contrary, employers now expect more productivity from their workers for even less money in real terms.
Prices still have a very long way to go to wash out all of the paper sloshing around the world economy. Here is the wave of printing compared with current price trends. No way this gets better before it gets much worse.
Putting it all together, especially along with declining financials, supply-chain breakages and other economic dislocations, this could be why lately it feels like the walls are closing in. Because they are and there are truly no safe ways out of this mess for anyone at this point.
However, we shouldn’t be too shocked by any of this. After all, it was all in the cards, an outcome guaranteed by the ghastly policies over the last two years & all enacted by a government which doesn’t have a clue about economics. A government which cares nothing for basic commercial and human rights.
And this is how you get the worst consumer confidence rating ever recorded:
What’s different today than from the 1970s is the astounding pace at which all of this is unfolding. Even only less than a year ago, administration officials were telling us everything would be just fine; and most people wanted to believe them, despite every bit of economic data pointing to the exact opposite. Truly it feels like our lords and masters must believe their power & fantasies to be more real than reality itself.
Only last month, the Biden Administration also proposed an incredibly bad idea of establishing a “Disinformation Governance Board” specifically designed to script the truth to all social media and mainstream media outlets while censoring all dissent. That plan blew up only because it was so obviously overtly Orwellian for public consumption. What matters most here is the intent, which is nothing short of totalitarian.
Politics become a very serious business once everyone’s personal finances begin to be negatively impacted & affected. Many searching for someone or something to fix this mess have hit on the old guy in the White House, who they somehow believe should do something about all these problems despite his lifelong government career of knowing nothing and doing nothing about anything.
While the “malaise” of 1979 was a long time in the making, many people have been caught off guard by the developing “Meltdown of 2022.”
Starting in 2020 and afterwards, money began to appear like magic in bank accounts all over the country. A third of the workforce grew accustomed to languishing at home while having the government pay them to pretend to work. Students began Zooming instead of learning. Adults who had always spent a lifetime embracing the normal utilities of labor for the first time experienced the vision of a life of luxury without having to work for it.
The result was a huge boom in personal savings, if only temporary. Much of this free government money was spent on Amazon, streaming services, and food delivery but much of it also stayed in bank accounts as people started saving money as they never had before; most likely because most of their opportunities to spend it on entertainment and travel had all dried up. Personal savings soared to over a record 30 percent.
However, that dynamic was not sustainable and could never last. Once the economy finally opened up again, a strange new reality presented itself. They discovered the money they had saved was now worth far less than before. Also, there were strange shortages in common goods they once took for granted. The purchasing power of their savings deteriorated with each passing month.
As a result, many people eventually depleted their savings and turned to debt finance just to keep up with the decline in purchasing power as their income in real terms continued to go south. In other words, the government took away everything it gave:
Our long period of national denial is now ending. People of all political persuasions are fuming in anger at the mismanagement of the economy and a reckoning of sorts is coming: something has to give and will give at some point. The Ruling Class and their friends in this country & around the world have done tremendous damage to common people.
For example, here’s the purchasing power of the dollar since 2018. Behold what our leaders & rulers have done!
And yet, what do they have to say to us? They tell us we are “transitioning” and need to to rely more on wind and sun instead of being energy independent on oil and natural gas. Consequences be damned!
The most frustrating aspect of all of this is the rampant failure of those with power to connect causes with their effects. The causes are perfectly clear: this was all kicked off by the most egregious, arrogant, irresponsible, foolhardy, and brutal policies ever perpetrated, all in the name of “public health” and disease control. So far, the people and agencies who created all this have been completely unwilling to reassess their failed action or take any responsibility for their decisions. Quite the contrary, they seem to be just as arrogant and clueless as ever.
None of these destructive policy decisions were an act of Nature nor were they ever even voted into law by any legislatures. Instead, they were imposed by corrupt & ignorant men and women with unchecked administrative powers under the mistaken belief they had it all under control. Regardless of what they claim, they didn’t then and they don’t now. ✪