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The impending economic crash

The impending economic crash thumbnail

For as Alexander Hamilton pointed out in the Federalist Papers nearly two centuries ago, A power over a man’s subsistence amounts to a power over his will.” — Henry Hazlitt

This week, Donald Trump’s favorite Latino food supplier, Bob Unanue, CEO of Goya Foods, spoke of an impending food shortage that we should all start to see by this summer. As a byproduct of fertilizer shortages emerging from the Russian/Ukrainian War, food suppliers are tamping down expectations of food availability later this year. It is yet another indicator of a global economy on the retreat.

If you’ve followed my writing for any time, then you are aware of several pieces about a global Great Reset and its billionaire proponents like Klaus Schwab of the World Economic Forum. You’re probably also aware that Joe Biden, or at least his handlers, are fully committed to this Great Reset. To date, every Great Reset critic’s warning of economic concern has come to fruition, and it’s not that people warning against these things are conspiracy theorists with an inside track. Proponents of the Great Reset are telling us what they’re doing, and seemingly few are batting an eye.

The World Economic Forum’s Klaus Schwab, who rubs elbows with the world’s richest titans of commerce each year in Davos, Switzerland, wrote and published an entire book called “COVID-19: The Great Reset” in July of 2020. This was a mere four months into global lockdowns.

Before the vast majority of the world had actually been exposed to COVID-19, Schwab had penned his vision for the new dystopian global society to emerge. This emerging society relies heavily on our existing structure collapsing in order to build back better.

Indicators of a floundering global economy continue to pile up. In the U.S., the Bureau of Labor Statistics’ inflation metric reached 8.5 percent, which is the highest on record since December 1981. The BLS metric takes industry surveys into account and thus is susceptible to partisan inaccuracies not reflected in price data. An alternative price index was built on the Chainlink crypto blockchain which pulls actual price data from different sectors of the economy. This Truflation index has recently placed inflation as high as 13.3 percent. You’re likely feeling it in your gas tanks and grocery bills now.

March saw the U.S. Treasury yield curve invert, whereby a two-year Treasury bond for a time delivered a higher return than a 10-year bond. Historically, this is a near 100 percent predictor of a recession looming within the next two years, with a greater than two-thirds chance it happens within the next year. In April, the U.S. Commerce Department announced that the Gross Domestic Product fell by 1.4 percent in the first quarter of 2022. Two consecutive quarters of losses will officially mark the entrance into a recession.

Wall Street has placed its bets on a 2023 recession, but May 2022 has ended as the worst eight-week stretch of the Dow Jones Industrial Average since 1923. Some investors like former Blackrock executive Edward Dowd have pegged the coming downturn to the third quarter of 2022. Dowd’s assertion is that this one will be different from those downturns we’ve experienced in recent history. Historically, inflation has landed in assets like stocks and real estate. The inflation we are now experiencing is in essential commodities like food and energy, with a deflationary trend in assets like your 401(k) or home value.

In the last two to three years, governments made crucial economic mistakes that we are feeling the impact of now. First, they closed down the global supply chain. Then they tried to make up for a lack of production by flushing economies with the money without the associated production. In the United States, that amounts to more than $8 trillion worth, and it has only served to increase the competition for a dwindling supply of goods. Even the dwindling supply seems contrived.

The greatest piece of the consumer price puzzle is the energy required to produce and deliver goods and services. That is one area where both domestic and foreign policy has served to sharply increase costs. Oil and gas are traded in futures and thus the Biden administration’s move to restrict oil and gas exploration in the first quarter of this year capped the supply at existing production levels. Add in the Biden Administration’s decision to prolong the Russian war in Ukraine by enacting harsh global energy sanctions, and you have a perfect storm of rising energy costs. Even the decision to release strategic oil reserves to cut into rising prices saw the American taxpayer spurned as those reserves were sold to Europe.

I’m not an economist and I don’t pretend to be one, though it’s debatable that the mainstream discipline has shot straight with us to date. If you were attuned to the corporate press, you might be led to believe that the growing hardships we are experiencing were unforeseen. Far from it, much of what we are experiencing we were warned about by some economists from across the political spectrum. Some might say that the Biden administration selling the American economy down the river is a matter of incompetence. I tend to lean toward malice.

So how is Main Street America to respond in order to lessen the effects of the encroaching downturn? It would be prudent that we take a page from hurricane alley and batten down the household hatches, so to speak. On your weekly grocery trips, throw in an extra 10 to 20 percent of non-perishable goods for storage. Have at least a month’s supply of goods on hand to ensure your family can eat. Top off your gas cans now so that you’re not left hanging in the event of a tightening energy spigot. Plant a garden this Spring. Bolster your emergency or rainy day fund and liquidate any variable rate debt that you can while interest rates are manageable.

None of this is financial advice, so speak to your financial advisor and ensure that whatever stage of life you’re in, you’re well-positioned to weather the economic storm. Should the crash not come, we can all benefit from taking small steps to improve the economies underneath our own roofs.


15 Comments on "The impending economic crash"

  1. makati1 on Sat, 28th May 2022 4:07 pm 

    The world is learning how interconnected we all are. When you cannot build a car because a small computer chip from China is not available, because some rare gas needed to make the chip, comes from the country you are trying to destroy, YOU suffer. So be it.

    For want of a nail the shoe was lost,
    for want of a shoe the horse was lost,
    for want of a horse the knight was lost,
    for want of a knight the battle was lost,
    for want of a battle the kingdom was lost.
    So a kingdom was lost—all for want of a nail.

    Never, in my 78 years, have so many stupid people been in positions of power in the West. Senile old men, menopause bitches. and brainwashed, overpaid, WEF drones.

  2. Theedrich on Sun, 29th May 2022 2:59 am 

    Solve the death of the GDP and Ukraine by war. Forget logic, science and facts.  Destroy Russia with a proxy crime and enrich U.S. politicians and the Deep State with money from World Economic Forum (Weltwirtschaftsforum) zillionaires.  Debase the dollar through inflation (now 13.3%/y).  Shut down carbon fuel sources and tell the herd that America’s fossil-fuel-based civilization, which took over a century to build, can be replaced in an instant with wind and solar energy.  The masses will never know the diff.  Import a hundred million criminals, sickos and parasites from exoplanet Outhouse to replace genosuicidal Whitey.

    Prop up a mentally decrepit geezer surrounded by imbeciles sporting gorilla-type noses and indulging in gay anality to tell the unwashed hordes that they must pay for the sins of others long dead, while leading the sheep to the slaughterhouse, and Schwab, Sörös, Gates and the CEOs swallowing the wealth of nations will be tickled pink.

    What, me worry?  Naw;  business as usual will overcome all the conspiracy theories.

  3. Biden's hairplug on Sun, 29th May 2022 4:23 am 

    “The world is learning how interconnected we all are.”

    Make that “were”.

    Nevertheless, I welcome this Ukraine war for its unintended consequences: it kills globalism, and it kills empire. It will probably kill the privately-owned car too for most. So be it.

    The Ukraine war, to the surprise of the “elite”, has shown that war is possible again. Many are taking notice, not in the least in the US.

    And if Russia does indeed prevail in at least Eastern Ukraine against NATO, it will encourage China to finish off the US in East-Asia by finally making its move against Taiwan. The resulting chaos will offer an opportunity for the Yanks to finally get rid of Washington and its anti-white kikes and secede.

    Meanwhile, Argentina and Saudi-Arabia are contemplating becoming members of BRICS. They recognize a winner if they see one.

  4. FamousDrScanlon on Sun, 29th May 2022 3:39 pm 

    Clause Schawb is to conservatives what Putin is to liberals.

    An all powerful, all seeing, all knowing bogyman. Next to god the most powerful being to ever exist.

    Anything bad that has ever happened to you or anything the might happen is the fault of Schwab or Putin depending on which team you support. Bad actors practicing bad management is apparent, but once the low hanging fruit has been picked ain’t no one can put it back on the tree.

    It’s more entertaining this way. If the humans made rational decisions that were heavily weighted using the laws of physics, chemistry & biology they would not be humans. They would be Vulcans.

    The limbic system drives the talking chimps bus. It’s more entertaining this way.

  5. makati1 on Sun, 29th May 2022 4:46 pm 

    Totally agree, Biden’s.

    I don’t agree, Famouse. Putin and XI are the most intelligent leaders in the world today. I follow both and agree with their plans. It’s time the ’empire of lies and hypocrisy’ is taken down. Should have happened decades ago. The world would be a better place today.

  6. Hello on Sun, 29th May 2022 8:19 pm 

    >>> And if Russia does indeed prevail in at least Eastern Ukraine

    Holy shit clog, you lowered your expectations quite a bit, didn’t you?

  7. Biden's hairplug on Mon, 30th May 2022 9:54 am 

    No, I didn’t. I never said that Russia would retake the entire Ukraine. They would create their own Vietnam if they did. Just split the country in 2 parts and have an international agreement that rump-Ukraine will never be a member of NATO.

    That’s a realistic goal.

    Game, set and match Vlad Putin.

  8. Biden's hairplug on Mon, 30th May 2022 10:11 am 

    “Ukraine war momentum shifting in Russia’s favor”

    The Russians have Severedonetsk:

  9. Dredd on Wed, 1st Jun 2022 5:50 am 

    comments on Parsons’ post:

    “If the nation’s economists were laid end to end, they would point in all directions.”
    — Arthur H. Motley

    “The only function of economic forecasting is to make astrology look respectable”
    — Ezra Solomon

  10. Biden's hairplug on Thu, 2nd Jun 2022 4:56 am 

    Scott Ritter is backtracking from his earlier pessimism and now again predicts a massive victory for Russia:

    Other links here:

    Ukraine and the South China Sea are going to be the sarcophagus of the US empire, that lasted merely 202x-1945 = 77-ish years.

  11. Biden's hairplug on Thu, 2nd Jun 2022 6:41 am 

    Had enough already?

    The first Tory MP pleads for the Ukay to rejoin the European Common Market in order to deal with the local economic crisis. The first green shoots of common sense?

    If they hurry up, they even might preempt the looming dismemberment of their Kingdom.

  12. Biden's hairplug on Thu, 2nd Jun 2022 7:03 am 

    Is Russia threatening to take out a US carrier?

    The US intends to deliver advanced missiles to Kiev. Moscow is fuming. So US missiles are going to hit Russian targets and Russia won’t retaliate against US targets? Think again.

    Rest assured that if a Russian Zircon missiles takes out a US carrier, it will be done so after close consultation with China. Russia and China (and North-Korea) will attack on the same moment. And then there is the Iranian threat to close the Gulf, which would leave Europe completely without fuel and powerless, so the US can confront Russia, China, North-Korea and Iran all on its own. What could possibly go wrong?

  13. FamousDrScanlon on Thu, 2nd Jun 2022 10:11 am 

    No worries clog. When things look their worst for the empire, Canada, will step in and once again save freedom for white folk.

    Are you familiar with our work & skill saving Europe from tyranny last century?

    Canada on D-Day: Juno Beach

    “Juno Beach was the Allied code name for a 10 km stretch of French coastline assaulted by Canadian soldiers on D-Day, 6 June 1944, during the Second World War. The Canadian Army’s 3rd Infantry Division and 2nd Armoured Brigade seized the beach and its seaside villages while under intense fire from German defenders — an extraordinary example of military skill, reinforced by countless acts of personal courage. The 3rd Infantry Division took heavy casualties in its first wave of attack but took control of the beach by the end of the day. More than 14,000 Canadian soldiers landed or parachuted into France on D-Day. The Royal Canadian Navy contributed 110 warships and 10,000 sailors and the RCAF contributed 15 fighter and fighter-bomber squadrons to the assault. There were 1,074 Canadian casualties, including 359 killed.”

    Canada had almost no Navy to speak of at the start of WW2. By the time WW2 ended, Canada had the 4th biggest navy in the world despite having a tiny population.

    It looks like we (superior Canadians) will have to remind the gooks the deadly consequences of getting uppity with their betters (Canadians).

    Canada says China ‘buzzing’ military flights in Asia

    Canadian military aircraft operating in Asia have been repeatedly “buzzed” by Chinese jets at dangerously close distances, Ottawa says.

    Canada says that its aircrews haves had to alter their path to avoid collisions while operating in international airspace near North Korea.

    It has called the Chinese behaviour unprofessional and potentially risky.

  14. Biden's hairplug on Thu, 2nd Jun 2022 11:08 am 

    Full western media turn-around:

    “Russia is winning the economic war – and Putin is no closer to withdrawing troops”

    To sum it up: Russia will absorb at least 20 million new Russians, arriving at 140+20=160 million Euros, where the US has 180 million Euros, henpecked by 8 million jews from the top and 150 million POCs from below; you can say that US whitey is being “sandwiched”, giving the 640 million Euros in Europe the nice opportunity to at a convenient moment liberate them back (from Washington) and park them back into a junior position (Anglo-Euro seniority swap). American independence from Europe, in hindsight, wasn’t such a good idea, as the Yanks were no match for the jews.

  15. Biden's hairplug on Mon, 6th Jun 2022 6:27 am 

    Brexit-Britain in crisis, PM facing vote of confidence today.

    Meanwhile, the EU-hating Express has to admit that now EVERY region in Britain admits that Brexit was a mistake:

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