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Joe Biden’s huge bet: the economic consequences of ‘acting big’

Joe Biden’s huge bet: the economic consequences of ‘acting big’ thumbnail

Joe Biden’s strategy for the US economy is the most radical departure from prevailing policies since Ronald Reagan’s free market reforms 40 years ago. With plans for public borrowing and spending on a scale not seen since the second world war, the administration is undertaking a huge fiscal experiment. The whole world is watching. If Biden’s coronavirus recovery plans are vindicated, they will demonstrate it is possible to “build back better” from the pandemic and that advanced economies have been overly obsessed with inflation for the past 30 years.

It will put government back at the heart of day-to-day economic management. If the plan comes off, it will show that unnecessary timidity in recent decades has let millions suffer unnecessary unemployment, starved many areas of opportunities for improved living standards and widened inequalities. But if the strategy fails, ending in overheating, high inflation, financial instability and the economics of the 1970s, the US experiment of 2021 will go down as one of the biggest own goals of economic policymaking since François Mitterrand’s failed reflation in France in 1981. Biden’s $1.9tn borrowing and spending plans have not been dreamt up on university campuses but are the result of a delicate political balance in a divided Congress. Any new stimulus figure much lower than the planned 9 per cent of gross domestic product risks losing more votes from Democrats than it would gain from Republicans. “This is what he can get done when he has razor-thin majorities to deal with,” says Professor Kenneth Rogoff of Harvard University. US output is set to rise above its pre-Covid path. Chart showing US real GDP (rebased Q4 2019=100) US GDP is expected in Q2 2021 to return to pre-Covid levels, and in Q3 2021 to return to pre-Covid GDP path The new administration is making the case that the stimulus plan is an extension of the “high-pressure economy” Janet Yellen advocated in 2016, when she chaired the Federal Reserve, which was a response to the insipid recovery after the financial crisis. The administration believes that this is the best way to ensure a full recovery from the Covid-19 crisis with few lasting scars. Now with Yellen as Treasury secretary, “act big” is the new slogan and the US economic policymaking establishment is on board.

Jay Powell, the current Fed chairman, stressed last week the need for “patiently accommodative” monetary policy, signalling that the US central bank was in no mood to take away the punchbowl by raising interest rates before the party got going. Growth expectations The plans have left economic forecasters in a quandary. The IMF and OECD have recommended looser fiscal policy to aid the recovery, but not so far on the scale planned by the US. The non-partisan Congressional Budget Office forecasts, which included only the final Trump stimulus in its latest forecasts, already expected the US economy to grow sufficiently fast this year to regain the pre-pandemic level of output by summer. It also expected the US economy to recover all of the lost ground from the Covid-19 pandemic by 2025 with no permanent scars. If former president Donald Trump’s stimulus plans were sufficient to make up the lost ground, the question is what an additional stimulus of 9 per cent of national income will achieve. The new administration of Joe Biden, centre, is making the case that the stimulus plan is an extension of the ‘high-pressure economy’

Janet Yellen, right, advocated in 2016 The new administration of Joe Biden, centre, is making the case that the stimulus plan is an extension of the ‘high-pressure economy’ Janet Yellen, right, advocated in 2016 © Saul Loeb/Getty Images The CBO has not yet given its view, but academics and private sector economists are increasingly taking a stance. Consensus Economics reports positively that independent forecasters have raised their expectations of US economic growth for 2021 and 2022 with barely any additional inflation. Ellen Zentner, chief US economist of Morgan Stanley, argues that the high-pressure economy will raise US output by the end of next year almost 3 per cent above the level that she had pencilled in before the coronavirus crisis. She assumes the Fed would not seek to rein in the rapid growth rates. The contrast with the 2008-09 financial crisis is striking. In the decade after that crisis, the US economy, along with almost all other advanced economies, did not manage to return to the pre-crisis path of output. In the halls of academia, the vast scale of the US experiment is much more controversial and has created shifts in allegiances within the economics profession that few could have predicted even a month ago.

There is little surprise that Paul Krugman, the economics Nobel laureate, would support the Biden plan, arguing that there was only weak evidence for the theory that low unemployment rates raise wages and then inflation. This view, he said, was “mostly wrong”, leading to policy being overly “constrained by the fear of a ’70s repeat”. The American economy did not fully recover after the financial crisis. Chart showing US real GDP (rebased Q4 2007=100) But his support for the Biden plan is matched almost as fully by Rogoff, who became famous during the global financial crisis for warning of the dangers of high levels of public debt. He says “we are in a different world today”, with much lower interest rates and a highly partisan politics. “I’m very sympathetic to what Biden’s doing,” Rogoff adds, even though there was a long-term cost to additional public debt and a risk of higher inflation. “Yes, there is some risk we have economic instability down the road, but we have political instability now.” Sceptical voices Among those looking enviously across the Atlantic are Europeans who worry that the eurozone will once again fall short of the US in terms of policy action and results. Erik Nielsen, chief economist of UniCredit, says that with the EU fiscal support around half the size of that in the US, Europe is now “frozen with fear”, which is likely to lead to “another three to five years of European growth underperformance relative to the US”. Lined up on the other side of the argument are several economists who have been hitherto the most vocal supporters of public borrowing and spending.

Larry Summers, a former Treasury secretary who was one of Barack Obama’s leading economic advisers in the aftermath of the financial crisis, has spent much of the past decade warning about “secular stagnation”, the view that advanced economies were stuck in a semi-permanent rut and needed more stimulus. But now that stimulus is on the cards, he has warned it has gone too far and is likely to trigger “inflationary pressures of a kind we have not seen in a generation”, which would also limit the “space for profoundly important public investments”. Fed chair Jay Powell has stressed the need for ‘patiently accommodative’ monetary policy Fed chair Jay Powell has stressed the need for ‘patiently accommodative’ monetary policy © Eric Baradat/Getty Images Olivier Blanchard, former IMF chief economist who ignited the global fiscal stimulus debate in 2019 with his presidential address to the American Economics Association, accepts that he is known to be supportive of higher public debt. Nevertheless, he warns that Biden’s “$1.9tn programme could overheat the economy so badly as to be counterproductive”. Some economists fear these sceptical voices will dissuade Europe from adopting the fiscal stimulus they think it needs to recover fully from the pandemic. Adam Posen, head of the Peterson Institute for International Economics, worries that fiscal conservatives in Europe will seize on any rise in inflation or signs of waste in the programme. “Delivery of good results doesn’t generate the same groundswell as a conservative warning,” he says. “I’d hate for [the Biden plan] to get a bad reputation abroad.” Recommended FT News Briefing podcast10 min listen Biden’s stimulus push, Texas blackouts, warehouse automation Supporters of the plan, especially those looking at it from an international perspective, have worked hard to justify the scale of the fiscal stimulus. Core to the argument for “going big” is the evidence of the past decade that countries have much more room for economic growth and lower unemployment before there is any inflationary pressure. In the US, the unemployment rate fell to 3.5 per cent in early 2020 before the pandemic, its lowest in 50 years, without any sign of inflation rising. The European Central Bank has struggled to raise inflation close to its 2 per cent target, leading many to think there has been insufficient fiscal stimulus.

This suggests economists and policymakers have persistently underestimated the output gap, the economic concept that estimates the degree to which economies are functioning below a level that would keep inflation stable. Robin Brooks, chief economist at the Institute of International Finance, which represents the world’s largest financial institutions, has run a campaign on what he calls “nonsense output gaps”, especially in southern Europe, estimated by the IMF and others. He says there was always more scope for expansionary fiscal policies without inflation and that the low output gap estimates have prevented growth and prosperity, further undermining countries’ public finances. US fiscal stimulus dwarfs that of the eurozone. Chart showing % of nominal expected GDP in 2021. US fiscal stimulus is expected to be just over 10% of nominal GDP in 2021 compared to 6% in the eurozone “Output gaps are a key input into whether and how much overheating we might get,” he says. While he believes the US debate on overheating is appropriate, Europe can afford much more stimulus without inflation. If it continues along existing lines and does not follow the US, he says: “Europe will get a repeat of sluggish recovery after the financial crisis.”

Alongside the potential for larger output gaps, another defence of big stimulus is that government spending, particularly on investment projects, can itself raise the speed limits of economies before they generate inflation. If the Biden plan can demonstrate it has generated more capacity for higher and greener future growth rates, that would be the holy grail of government intervention, says Mariana Mazzucato, professor of economics at University College London. Do it right, she says, and there are huge benefits available. Then president Barack Obama with vice-president Joe Biden in 2011.

Some economists worried than about ‘secular stagnation’, but now they fear high inflationary pressures Then president Barack Obama with vice-president Joe Biden in 2011. Some economists worried than about ‘secular stagnation’, but now they fear high inflationary pressures © Pete Souza/Getty Images “You’re not just flooding the system with liquidity, but reaching the real economy and creating a stronger industrial base,” she says. “That’s the kind of thing we want to see — expanding capacity and preventing inflation.” The arguments in favour of the Biden stimulus plan are not disputed by most of those who have expressed concerns, but they say its size at up to 14 per cent of gross domestic product, including the stimulus signed into law by Trump in December, is simply unwarranted and might undermine the argument for using fiscal policy to help economies recover from the pandemic.

Jason Furman, former chair of Obama’s council of economic advisers, says the new administration is entirely justified in seeking to test the level of the output gap and the potential level of GDP that did not generate inflation. “The idea you test potential by year after year throwing logs on the fire is incredibly compelling, but that’s not the same as spending over 10 per cent of GDP in one year,” he says. Protesters in 1970s New York rally against high food prices. If Joe Biden’s economic experiment fails it could lead to the overheating, high inflation and financial instability of that decade Protesters in 1970s New York rally against high food prices. If Joe Biden’s economic experiment fails it could lead to the overheating, high inflation and financial instability of that decade © H. Armstrong Roberts/ClassicStock/Getty Images Few would worry about inflation rising to 3 per cent or even temporarily a bit higher, he adds, but the Fed would have to react if there was a sustained bout of inflation. One danger cited by many economists is that if inflation becomes ingrained in an economy it can be difficult and painful to eradicate, with central banks having to raise interest rates and cause a recession and unemployment to bring it back down.

If Krugman is right that the link between unemployment and inflation has become weaker, there is a fear that any action by the central bank to lower inflation will require a lot more unemployment than in the 1980s and 1990s to bring it down. Poorly targeted While some inflation is certainly seen as a benefit of the reform, helping to grease the wheels of a modern economy, there is also a debate whether inflation was, in any case, about to rise.

Manoj Pradhan, founder of Talking Heads Macroeconomics, is concerned that the short-term inflationary dynamics of the Biden plan will combine with longer-term upward pressures on prices that will come from an ageing population consuming more and producing less. “Even before [Biden announced his plan], the US looked like an inflationary place anyway,” Pradhan says. And what happens in the US tends to get exported, he adds. “Fiscal policy has led the stimulus and if inflation becomes acceptable in the US, it gives a green light to the rest of the world.” Economics professor Mariana Mazzucato says that, done right, Biden’s plan is ‘not just flooding the system with liquidity, but reaching the real economy and creating a stronger industrial base’ Economics professor Mariana Mazzucato says that, done right, Biden’s plan is ‘not just flooding the system with liquidity, but reaching the real economy and creating a stronger industrial base’ © Gian Ehrenzeller/EPA Economists of all persuasions also worry that the Biden plan, with its heavy emphasis on sending cheques to families, is poorly targeted and not nearly as focused on improving the potential for future growth as they would like.

Randall Kroszner, former Federal Reserve governor and now deputy dean of the University of Chicago’s business school, says the heavy fiscal stimulus in response to the pandemic is appropriate, but the debt created does have a cost. “It does have to be paid back by future generations so it is very important to make sure there is a return to that spending,” he says. If that was not difficult enough, others warn that Europe cannot simply ape what America is doing, partly because it does not have the same access to finance and partly because there is more scepticism that it is possible simply to “build back better” just by borrowing and spending. Recommended Martin Wolf Competence is Joe Biden’s best strategy Robert Chote, the recently departed head of the UK Office for Budget Responsibility, says the outlook for fiscal policy outside the US is likely to focus less on the stimulus debate and more “on the severity of any long-term scarring of the economy — which is hard to estimate with any confidence”. He adds that the public finances are more complicated than thinking about stimulus. Governments, for example, would soon need to consider raising taxes, especially if they “feel the need to spend a permanently bigger share of national income on health and social care after the pandemic than before it, to build more resilience into the system”. These structural public finance questions will not go away easily once economies have recovered. For now, however, all eyes are on the huge stimulus numbers coming from the US. Its new government is planning to borrow and spend and Yellen has called on the rest of the G7 to follow suit. As Rogoff says, the experiment is likely to be global. “If it goes wrong for the US, it goes wrong for everybody.”



33 Comments on "Joe Biden’s huge bet: the economic consequences of ‘acting big’"

  1. Go Speed Racer on Tue, 16th Feb 2021 9:11 pm 

    The problem with this article starts with
    the headline. Suggesting that clueless
    senile joe biden is taking any initiative
    about anything.

    They bring him stacks of executive orders
    and he says “what is this I am signing”.

    He is a wholly-owned puppet of the
    communist chinese deep state. The
    headline should not suggest that joe
    biden is deciding anything about anything.

    joe biden also did not “win” the election.
    Cheating is not winning.

  2. CanadaIsADumbAssNationThatDeserveToDie on Tue, 16th Feb 2021 9:38 pm 

    StarvingLion » Tue 16 Feb 2021, 22:40:55
    The Oil stocks are SOARING because Oil production is COLLAPSING.

    Cryptos are SOARING because the US $ is COLLAPSING.

    Gold is COLLAPSING because the Cryptos are SOARING.

    The Capitol is BURNING because this ShitShow is FAILING.


    It is good summary. What a dumb ass nation Canada is. Whites birth rate is too low, to keep this nation this alive, so they fill this shit nation with shit brown diversity. I I love shit brown diversity, because it gave me the perfect excuse to sit on my ass and contribute nothing. I would personally prefer the east Europe approach: we know we are going extinct, by we sill prefer to around people of the same skin color instead of bringing shit brown diversity.

  3. ICanNotWaitToSeeCanadaAndUSDie on Tue, 16th Feb 2021 10:30 pm 

    Is there any fucking real White masculine man left in this dumb ass nation. All the man in Canada look skinny unhealth, have feminine feature, feminine body language and feminine emotional way of think.

    This dumb ass nation is not worth saving. Now to wan to ban assault weapon. Cannot have any fun in the nation. It is all about protecting the stinky vagina. Vaginas have to feel safe. Fuck what masculine man like me like and what we like. That does matter. You stupid feminine deserve what is coming. Where are going into a world where real life practical skill matter. Talking for hours about nothing is not a skill that will keep you alive. This is sample of feminine man. There are everywhere in the government. They are parsitical leaches.
    man leaving in Canada deserve

  4. IWantToSeeCanadaAnUSBurn on Tue, 16th Feb 2021 10:38 pm 

    Another piece of shit inferior man, same as retard legume in Quebec. Useless man.

  5. IWantToSeeCanadaAnUSBurn on Tue, 16th Feb 2021 10:42 pm 

    You want to see another piece of shit metro sexual man that you cannot trust your life with. Jump 26:00

  6. ICanNotWaitToSeeCanadaAndUSDie on Tue, 16th Feb 2021 10:52 pm 

    Mon christ de Legault a merde. J’attends encore pour que justice soit faite. It was illegal to spy on me and share my personal info with other members of you cabinets.

    Mon ostie de merdeux de tabarncle.

  7. ICanNotWaitToSeeCanadaAndUSDie on Tue, 16th Feb 2021 11:06 pm 

    Look another Canadian inferior white man, that thinks like a women, walk like a women.
    Jump to 5:56

    What about this other inferior man. This is a woman in a man body. When you interact with such a man you have to act like you are talking with a women

    JUmp to 6:32

    Piece of shit like these man have been making my life miserable for a while now.

  8. ICanNotWaitToSeeCanadaAndUSDie on Tue, 16th Feb 2021 11:10 pm 

    I swear to GOD, you fuckers are doing on purpose to upset me.

  9. Biden's hairplug on Wed, 17th Feb 2021 12:47 am 

    “Europe cannot simply ape what America is doing, partly because it does not have the same access to finance”

    Translation: “Europe can’t print money like we can”.

    For the rest, the Financial Times is framing the situation solely in financial and economic terms, the only world they will ever know, blind for what is really happening in the US. For them the whole world is one big theater of economic actors and every biped an interchangeable “economic resource”. Concepts like history, nation, tribalism, race, tradition or even environment, doesn’t exist.

    They will never understand by which truck they are about to be going to be hit.

    “I swear to GOD, you fuckers are doing on purpose to upset me.”

    The only one who is doing a perfect job of upsetting himself are you.

  10. Theedrich on Wed, 17th Feb 2021 2:36 am 

    Joe B. is just a piece of used toilet paper. If America were filled with highly intelligent, industrious White citizens, his “Destroy-America-to-Save-It” plan might conceivably work.  But this is not 1933.  Democrat anti-White politics and the widespread culture of sloth, drugs, and parasitism make defeat certain.  As in the USSR, propaganda is the only thing that works.  Low-IQ negritude is all the rage, and woke sadism intimidates anyone with any initiative.  Offshoring of business to Asia will continue unabated, given the fact that China owns the Democrats and a good share of the Republicans.  Combined with a highly politicized viral pandemic (never mind the senseless wars), the entire strategy of magic money for a nation of stupidoes is a plan to bankrupt civilization.

    Congress has become utterly useless.  It is now only a rubber stamp for the hallucinations of multibillionaire Leftists of the Davos persuasion.  It uses virtue signaling and anti-Trump rhetoric to mask its nullity.

    We are only marking time until disintegration brings on the dictatorship.

  11. Biden's hairplug on Wed, 17th Feb 2021 3:09 am 

    Biden is an empty suit:

    “Biden plays video games with family, shows off presidential ‘swag’ at Camp David”

    Like Obama and very much unlike Trump, Biden precisely knows what is expected from him. Biden doesn’t do any thinking or preparing or writing, he just plays video games, like Obama played golf, both waiting for phone calls from Ron Klain or David Axelroth, their respective jewish handlers, who then “brief” their actors-playing-president about what to say in front of the camera’s next. When that is done, they can go back playing again their silly juvenile games.

    Real policy is made in boards and think-tanks, run by jews, like the CFR or FED or AEI. They decide the policy, write the papers and speeches and the empty suit in the White House reads them aloud in the microphone and the palls in the jewish-owned media put a spin on it all, warning 24/7 against the dangers of antisemitism and white supremacy.

    US politics is an absurd Vaudeville theater to fool the American voters about the real state of affairs in their nation, err country.

  12. Biden's hairplug on Wed, 17th Feb 2021 3:51 am 

    “Top colleges at Oxford are in the grip of ‘unconscious bias’ training: More departments force students and staff to undergo classes to root out hidden ‘racist’ behaviour”.

    Mediocre Anglo lefties LOVE low third world standards, gives them high grades, but in international “Darwinian competition” on world markets, the ugly truth shines through merciless:

    Anglos as the new mediocre Soviets of the 21st century. They have invented a new form of communism that is even more toxic than that of their Soviet counterpart, a communism that is more toxic, because it is racial and hence difficult to reverse, other than through bloody secession:

    “Top universities” in the UK are following the same woke path as their US counterparts, as virtue signaling is far easier than real academic achievement. Just pretend it is important to “integrate” folks from Africa and West-Asia and play the inverse Friday from Robinson Crusoe and put their feet onto your white neck:

    Oxford isn’t fooling anyone. Where Oxford still ranks high in Anglo-sourced rankings, more racialist thinking Asians from former UK-colony Singapore have put Oxford at place #43, probably correct:

  13. Biden's hairplug on Wed, 17th Feb 2021 6:37 am 

    Trump is back, attacks former ally McConnell, actively contributes to splitting up the GOP:
    (bring it on)

    DJT: “the GOP will never win again”
    (he is correct about that one)

  14. FamousDrScanlon on Wed, 17th Feb 2021 11:33 pm 

    “…the communist chinese deep state.”

    LMFAO. Truly there is no ceiling on the level of absurdness the American conspiracy tard can reach.

    Next week – “…the communist chinese deep state has acquired Jew space lazers to target his holiness papa Trump.”

    speed racer, you used to be one of the few sensible conservatives on here. ‘It’ got you. You’ve lost your shit dude.

    In the last year I’ve seen a number of very intelligent right leaning ‘Doomers’ lose their shit. ‘It’ got them too. One guy is a total unknown, but he’s one of the most insightful writers I’ve seen & now he’s been reduced to angrily barking out paranoid memes, which explain nothing, 90% of the time – ‘deep state!!’…. ‘Bill Gates!!’…. ‘reset!!’….. ‘bla bla!!’. Obviously, intelligence is no shield against ‘it’. This all happened around the same time – 2 months into Covid. ‘It’s’ very powerful & has ruined many a man since forever. Like most things with the humans there’s not much, if any, choice involved.

    Watch out for Jewish sharks kids.

  15. Michael Rynn on Thu, 18th Feb 2021 5:35 am 

    The Ultimate Limits to Modern Monetary Theory are natural resources. The evidence is that we model things without money, as in the Limits to Growth models, and energy costs of getting energy, EROI. Take money out of all sides of the equations to have the real world. Nature isn’t doing so well, we are running out of living planet. Re-inflating the debt bubble is going to put money into the large scale enterprises and their wealthy owners. This is not lot likely bring about any sort wealth distribution, that can bring human activities and resilience back down to a more natural, local scale. It is most likely press on harder the final bulldozing, mining and clearance of sustainable ecosystems of this biosphere.
    A diminution of exploitation pressure on this living planet is required to give everything and everybody more breathing room. You need a nature-led recovery, not a money-led recovery. A collapse of enormous investment in military empire support requirements is a first step. If this is not taken, onwards to self-obliteration.

  16. Artificial Fuck face on Thu, 18th Feb 2021 8:25 am 

    We are all doomed and we will be eaten by the head hunters of new guinea. This will happen by noon tomorrow of this I am sure

  17. Canuck in make up on Thu, 18th Feb 2021 8:27 am 

    Ah so you’re the tough guy eh?

  18. Artificial Fuck face on Thu, 18th Feb 2021 8:28 am 

    You may question my outrageous theories but you will only make us all look ridiculous!

  19. Biden's hairplug on Thu, 18th Feb 2021 9:28 am 

    China points at Fort Detrick in the US as the source of COVID-19:

  20. makati1 on Thu, 18th Feb 2021 3:21 pm 

    Agree with GO and Theedrich. The beginning of the end of Amerika was the stolen “election” to make the Reset in Amerika possible. A last ditch power grab by the elite before the whole financial shithouse collapse’. The ‘can’ has hit the wall, it seems and this time, no rebound. We shall see. It is going to be a more “interesting” year than 2020.

  21. Biden's hairplug on Fri, 19th Feb 2021 2:49 pm 

    Can’t make this stuff up:

    “Biden can repay Black Americans through canceling our student debt”

    Personally, I’m still suffering from the Roman occupation of several hundred years, the Spanish occupation, the French occupation under Napoleon and then the Germans, not to mention the US empire, which saddled us with an ideology that is destroying our country.


  22. Biden's hairplug on Sat, 20th Feb 2021 2:59 am 

    Bitcoin, the 21st century equivalent of the 17th century Tulipmania:

    Other companies are buying Bitcoin on margin, taking advantage of super-low interest rates to make a fast killing. What a great idea! Even better than borrowing to buy back your own company’s stock to jack-up the share value. Don’t be surprised if half of the S & P jumps into the Bitcoin frenzy, bidding it up to six figures. Won’t that do wonders for US productivity and working-class wages? None of that will escape the attention of a “progressive” Congress, which will see a great opportunity to try to compensate for its fiscal profligacy by passing new taxes on “excess wealth” or “windfall profits.” Then, watch the rush-to-the-exits by shareholders in those companies that loaded up on Bitcoin, aggravated by the margin calls on the dough they borrowed to buy the stuff… as well as Bitcoin itself plummeting back to its actual true value: around zero.

    At the height of Tulipmania, a period that lasted only half a year, a single tulip costed 10 years wage of an average craftsman or the price of a beautiful mansion along an Amsterdam canal.

    Today you can have 1 single tulip bulb for 25 cent, or 1/160,000 of an average wage, the real value, measured in the amount of human effort to produce one (which is not much):

    Won’t be different with bitcoin, probably the most gigantic speculative bubble in world history.

    The wild card, though, is how quickly we will destroy the value of the dollar as all this occurs, that is, provoke a king-hell inflation, so the people will get their GBI in worthless money. Nobody believes it can happen after ten years of quantitative easing and other shucks-and-jives in the accounting thickets that seemed to hardly move the inflation needle, except on Wall Street. But anyone who sets foot in a supermarket these days must feel a little shocked at food prices. A dollar for one measly onion…

    Let’s put that to the test… within 10 secs you can find out with your Googlelator that the largest supermarket chain in the US is Kroger. In Holland it is Albert Heijn (or AH, not to be confused with a notorious German politician):

    US: 88 cent per pound

    NL: 89 cent per kilo

    OK, so Kunstler is exaggerating a little, but the price difference is still almost a factor TWO, to the advantage of the Dutch.

    If you compare GDP/capita on a REAL basis (PPP), you have:

    USA 63k
    Holland 57k

    One wonders how realistic this almost parity situation is. But maybe extrapolating here is a little too much, or as the saying goes, “one onion doesn’t make a summer”… or something.

    Just wait until Eurasia scrubs said area clean of the dollar reserve currency (gonna happen anyway) and the US loses 35-40% GDP, falling back to the level of a Balkan country, or worse… Northern Ireland. One wonders what that will do to the right-wing (patriot) movement in the US.

  23. Biden's hairplug on Sat, 20th Feb 2021 5:04 am 

    BoJo sucking up to Biden and opportunistically distancing himself from Trump:

    “‘America is unreservedly back as the leader of the free world’: Boris Johnson heaps praise on Joe Biden who says Trump ‘strained the transatlantic relationship'”

    The real motive behind Brexit: the UK preference of the US over the EU, even more important delusional empire nostalgia. It remains to be seen if it is wise to desperately cling yourself to a distant declining power, over a neighbor that has embarked on a new future and project, that is attractive to even more countries in Eastern Europe, with the main prize Russia.

    Don’t expect Biden to return the favor, he doesn’t like Brexit and he wipes his arse with this alleged “special relationship”. The fact that he has Irish roots doesn’t help the Brexiteer Unionists very much either, as Irish America, including Biden, would love to see a reunited Ireland.

    For Europe the sport is not to break with the US, but quietly loosen the grip the US still has over Europe and make it clear to Washington that Europe has no interest in setting itself up as a batter ram against Russia or China, just to serve US globalist interests. Nord Stream 2 is going to be finished, our trade with China has no limit and will outshine trade with the US, that has ever less on offer.

    For the rest, let time work for Europe and wait until China is strong enough to challenge the US in East-Asia and inflict a humiliating defeat, possible followed by a patriot insurrection in the US. THAT will be the moment to reverse roles US-EU and a fast rapprochement EU-Russia to stave of the new Chinese threat.

  24. Biden's hairplug on Sat, 20th Feb 2021 5:31 am 

    A Corona passport a right-winger can live with. Rather than forced vaccinations, forced testing could be acceptable. Currently, Corona tests are becoming dirt heap and hence ubiquitous. It is totally reasonable to demand that you have been very recently tested (couple of days) negative if you enter a plane, theater or restaurant. For that you have the Corona app, you carry with you on your phone.

    In this way, healthy people won’t be held hostage by unhealthy, Covid-vulnerable fatties, who drag everybody into dubious vaccination, because of their gluttony behavior. So, if you want to participate in something “social”, you have to queue up for some test facility 24 hours in advance max, get a swab and receive the outcome a few hours later on your phone.


  25. Japoy Van Der Westhuisen on Sat, 20th Feb 2021 7:47 am 

    Biden is a corpse and represents all that is wrong with the American oligarchic leadership.

  26. Cloggie on Sat, 20th Feb 2021 6:10 pm 

    A Cornhole passport a wingnut like me can live with. Rather than forced lubeless anal insertions, forced anal probing could be acceptable. Currently, anal probes are becoming dirt cheap, and hence ubiquitous. I think about them all day long. It is totally reasonable to demand that you have been very recently conrholed (couple of gays) if you enter a blue bar, broadway theater or bathhouse. For that you have the Cornhole app, I carry with me on my phone.

    In this way, my people won’t be held hostage by unhealthy, uptight weirdos, who drag everybody into their dubious heterosexual’ lifestyles, because of my abnormal behavior. So, if you want to participate in something “social”, ahem, and you have to queue up for some bathhouse facility 24 hours in advance max, get a rectal swab and then receive a good cornholing from the biggest North African they have in the joint for few hours.


  27. Biden's hairplug on Sun, 21st Feb 2021 1:11 am 

    Trump announces his first rally (28 feb) after the regime change, wants to talk about the future of the Reps (none) and the conservative movement:

    The first task for the Patriot movement must be the dismemberment of the GOP and as such break up the 2-party cartel that has held America in its grip for more than a century. Don’t worry about “splitting the conservative vote”, within the context of the US, the Dems have won for ever anyway, thanks to tens of millions of soon-to-be legalized former undocumented gate crashers. The new goal must be to destroy the context. You don’t want to win back Washington or the White House, you want to distance yourself from these, for good. For that you need 1) a dissident Patriot Party and 2) a major military conflict, outside the US to ensure that Washington is beleaguered from all sides, inside and outside. For Patriots, China needs to be seen as a temporary ally.

  28. Biden's hairplug on Sun, 21st Feb 2021 1:34 am 

    2 Boeing’s lose parts during flight, have to make emergency landings (US, Netherlands)

    In the Netherlands 2 people hospitalized.

    “PLANE DEBRIS rains from the sky as United jet makes emergency landing in Denver with engine on FIRE”

  29. Biden's hairplug on Sun, 21st Feb 2021 11:08 am 


    Lara Trump suggests so:

    One wonders what the GOP will have to say about this?

    If they don’t let him run for the GOP, expect a Trump Party to be established, probably under that name.

  30. Biden's hairplug on Mon, 22nd Feb 2021 9:08 am 

    “White supremacy a ‘transnational threat’, U.N. chief warns”

    Are we then spared nothing?!

    Seriously, this Portuguese globalist fool is clearly seeing his One World pet project under dire threat. Good!

    Let him rot in his decaying NYC, we don’t need him back, you can keep him.

  31. Biden's hairplug on Mon, 22nd Feb 2021 9:12 am 

    Boeing at it again, dropping out of the skies like dead flies:

    “‘I was panicking’: Passenger recalls earlier Boeing 777 jet failure over Japan”

    “Regulators probe engine blow-outs as older Boeing 777s suspended”

    “United Airlines Flight 328: Boeing 777 Engine Failure Scatters Debris Over Denver”

    “ATC Audio Boeing 747 Longtail Aviation VQ-BWT Engine Failure Maastricht Netherlands”

  32. Cloggie on Mon, 22nd Feb 2021 9:23 am 

    “Daimler Is Considering An Early End Of ICE Vehicle Production”

    Nobody is considering buying an ICE, not in this climate, pun intended.

    Gone with the Wind! Wind sector offers safe haven for superfluous oil workers:

    “Offshore wind jobs to triple by 2030 as sector offers ‘hiring haven’ for fading oil & gas: Rystad”

  33. Biden's hairplug on Tue, 23rd Feb 2021 4:05 am 

    “Why Wales will split from the UK or simply not exist by 2030, according to one of the country’s leading independence figures”

    The Welsh independence movement is too weak to accomplish anything by itself.

    However, as the Dutch saying goes:

    “Towards a Celtic Union?”

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