Let’s Compare The U.S. Economy Before The Pandemic To The U.S. Economy Today — The Economic Collapse | Truth2Freedom’s Blog

https://truth4freedom.wordpress.com/2021/07/27/lets-compare-the-u-s-economy-before-the-pandemic-to-the-u-s-economy-today-the-economic-collapse/

… Our leaders created, borrowed and spent trillions upon trillions of dollars in a desperate attempt to get our economy back on track, and it turns out that all of that money didn’t really have the enormous impact that they had hoped. On the other hand, inflation is now beginning to spiral out of control, and many are comparing this time in our history to the Jimmy Carter era of the 1970s.

In this article, I would like to compare the state of the economy today to the state of the economy just before the pandemic started sweeping across the country.

As you will see, it appears that a tremendous amount of long-term damage has been done…

UK’s House Of Lords Is Concerned Over A Dangerous Addiction To QE

https://www.nationandstate.com/2021/07/22/uks-house-of-lords-is-concerned-over-a-dangerous-addiction-to-qe/
UK’s House Of Lords Is Concerned Over A Dangerous Addiction To QE Authored by Mike Shedlock via MishTalk.com, When and how will central banks escape their addiction to QE? That question was addressed in a report by the UK House of Lords. The House of Lords is Investigating a Dangerous Addiction to QE The report is […]

Quantitative-Easing: How The World Got Hooked On Magicked-Up Money

https://www.nationandstate.com/2021/07/20/quantitative-easing-how-the-world-got-hooked-on-magicked-up-money/
Quantitative-Easing: How The World Got Hooked On Magicked-Up Money Authored by Ann Pettifor via ProspetMagazine.co.uk, Going cold turkey would finish off a dysfunctional global financial system that’s now hopelessly addicted to emergency infusions. The only solution is surgery on the system itself… The world economy is a mess. The system, notionally governed by the invisible…

Buyer’s Strike In America: Explosive Inflation Leads To Record Collapse In Home, Car Purchase Plans | Jim Campbell’s

https://whatyouthoughtiwentaway.wordpress.com/2021/07/19/buyers-strike-in-america-explosive-inflation-leads-to-record-collapse-in-home-car-purchase-plans/

It gets even worse because as the UMich director noted, “consumers’ complaints about rising prices on homes, vehicles, and household durables has reached an all-time record”. Simply put, due to skyrocketing prices, America is going on a buyers’ strike!…

This “Temporary” Inflation Is Turning into an Inflation Spiral, by Wolf Richter | STRAIGHT LINE LOGIC

Comment by tonytran2015: Inflation of fiat money is a stealthy way of taxing people. All fiat money issuers are tempted to enjoy their power of taxation by stealth and cannot resist it (, The lesser-known costs of inflation).

https://straightlinelogic.com/2021/07/15/this-temporary-inflation-is-turning-into-an-inflation-spiral-by-wolf-richter/

The inflation won’t be temporary because the fiat debt creation that’s fueling it hasn’t been. From Wolf Richter at wolfstreet.com:

Get Used to Higher Inflation. My Thoughts on the Biggest Mess I’ve Seen in Decades.

his year, inflation blasted off with a vengeance, and the last four months have seen the hottest pace of inflation since the 1980s.

The consumer price index – the CPI – rose 5% year-over-year for May. The June reading will come out in a couple of days [update: June CPI came in at 5.4%]. 5% of annual inflation is bad enough. But the pace of inflation over the past four months has been much higher, clocking in at over 8% annualized.

Surely, some inflation measures will tick down in the near future, giving everyone false hopes, before rising again. The first bout of inflation always looks temporary. But during those first bouts of inflation, that’s when the triggers of “persistent” inflation – namely the inflationary mindset and inflation expectations – are being unleashed.

So now the Fed keeps repeating time after time that this is temporary and that it will go away on its own because it was caused by temporary factors, namely a demand shock that occurred because the government spread $5 trillion in borrowed stimulus money since March last year; and because the Fed printed $4 trillion over the same period and repressed interest rates to 0%.

Continue reading→

This Is The Worst Inflation Since The 1970s, And The Stage Is Being Set For The Total Collapse Of The U.S. Economy — The Economic Collapse | Truth2Freedom’s Blog

https://truth4freedom.wordpress.com/2021/07/13/this-is-the-worst-inflation-since-the-1970s-and-the-stage-is-being-set-for-the-total-collapse-of-the-u-s-economy-the-economic-collapse/

How does it feel to live in a country with double-digit inflation? On Tuesday, the Bureau of Labor Statistics told us that the consumer price index has risen 5.4 percent over the past 12 months, and such a high number shocked a lot of people. But in order to make a fair comparison to the past, we have to account for the fact that the way inflation is calculated has been changed literally dozens of times over the past several decades. According to John Williams of shadowstats.com, if inflation was still calculated the way that it was back in 1990, the official rate of inflation over the past 12 months would be about 9 percent. And if inflation was still calculated the way that it was back in 1980, the official rate of inflation over the past 12 months would be well into double-digits.

Everyone that has been warning that we could soon see inflation rise to levels that we haven’t witnessed since the the Jimmy Carter years can stop, because we are already there.

The Bureau of Labor Statistics is committing fraud, because the numbers that they give us are almost meaningless. For example, U.S. home prices have risen 20 percent over the past year, but the “shelter component of inflation” makes up only a tiny fraction of the overall consumer price index…

We’ll get the latest read on inflation Tuesday, when the Bureau of Labor Statistics puts out its consumer price index for the month of June. As you may recall, the May report showed the biggest annual increase in consumer prices, 5%, in 13 years. But if you’re looking for the recent jump in home prices to show up in that number, you’re likely to be disappointed. The shelter component of inflation, as measured by the CPI, has stayed pretty steady, from around 2% to 3.5%, for the past decade. And some economists have a problem with that.

Wouldn’t it be wonderful if your mortgage payment accounted for only 3.5 percent of your overall budget each month?

Needless to say, such a figure is completely and totally unrealistic.

For most of us, housing is the single biggest expense that we face on a regular basis. And as I have documented in many previous articles, housing costs have been soaring into the stratosphere in recent months.

Car prices are also rising at an extremely alarming pace. According to CNN, the average price of a new car has shot up 12 percent over the past year…

In May, the average new car price hit a record $38,255, according to JD Power, up 12% from the same period a year ago. About two-thirds of car buyers paid within 5% of the sticker price in May, with some paying even more.

Instead of buying a new vehicle, you could purchase a used one instead, but used car prices increased 10.5 percent in just the last month

Last month alone, average used car prices soared 10.5 percent – the largest such monthly increase since record-keeping began in January 1953. That spike accounted for about one-third of the monthly increase for the third straight month.

Renting vehicles has gotten a lot more expensive as well.

In fact, average rental rates are up a whopping 86 percentsince this point in 2020…

Daily car rental rates have increased 86% compared to this time last year and 140% more than 2019, according to Julie Hall, a spokesperson for AAA.

The “5.4 percent inflation” fairly tale that the Labor Department is trying to sell us is absolutely laughable.

And as long as they keep putting out such doctored numbers, they are going to have zero credibility.

Everyone can see that prices are skyrocketing all around us. In such an environment, a restaurant in New York can charge 200 dollars for French fries and some people will actually pay that price

Serendipity3, the iconic Upper East Side restaurant, set a Guinness World Records title for making the “Most Expensive French Fries” — just in time to celebrate National French Fry Day Tuesday!

Serendipity3’s Creative Director and Chef Joe Calderone and Corporate Executive Chef Frederick Schoen-Kiewert are the masterminds behind the “Creme de la Creme Pommes Frites,” which cost a whopping $200.

Our leaders thought that they could pump trillions upon trillions of fresh dollars into the system without any serious consequences.

Sadly, they were dead wrong.

Inflation is wildly out of control, and one economist just told Breitbart News that the U.S. is starting “to look a little bit like a Latin American country”

Desmond Lachman, an economist and senior fellow with the American Enterprise Institute (AEI), told Breitbart News on Sunday that the U.S. is beginning to resemble a Latin American country given its inflation, government spending, and printing of money.

“[The U.S. is] in [a]very bad position from a long-term point of view. I don’t see how this can end well when we’re running — now — budget deficits something like 15 percent of GDP,” Lachman said on SiriusXM’s Breitbart News Sunday with host Joel Pollak. “This is beginning to look a little bit like a Latin American country.”

It is actually much worse than that.

The truth is that we are in the terminal phase of the greatest debt bubble in the history of the world, and at such a critical moment U.S. officials have decided to systematically destroy the value of the reserve currency of the planet.

Prior to the pandemic, the U.S. government was stealing more than a hundred million dollars an hour from future generations of Americans, but now our politicians have upped that rate to more than 300 million dollars an hour.

And when the next major crisis comes along, they will pass even more “emergency packages”, because spending money is the only solution they have.

Meanwhile, the Federal Reserve continues to pump giant mountains of money into the financial system. Since September 2019, the size of the Fed balance sheet has more than doubled, and that should be considered a crime against humanity.

Unfortunately, the vast majority of Americans don’t even know what the Federal Reserve is, and only a small fraction of the population actually understands what they are currently doing to our financial system.

Facing no significant resistance, our politicians will continue to get us into staggering amounts of debt, and the Fed will continue to transform the U.S. dollar into toilet paper.

Sadly, what they are doing is setting the stage for the collapse of the late, great U.S. economy, and the economic pain that is ahead will affect every single man, woman and child on the entire planet.

This Is The Worst Inflation Since The 1970s, And The Stage Is Being Set For The Total Collapse Of The U.S. Economy — The Economic Collapse

Economics professor Justin Wolfers says Australia ‘failing’ as land of the fair go – ABC News

https://www.abc.net.au/news/2021-04-27/justin-wolfers-the-reserve-bank-caused-recession-we-had-to-have/100097354

When the Hawke government floated the currency in
1983 and deregulated the financial system, it fundamentally changed
Australia’s macro-policy settings.

However, it took policymakers years to adapt their thinking to the new reality.

Many
policymakers, including at the RBA, remained concerned with old
problems that plagued the old fixed-exchange-rate system, not realising
they were no longer an issue.

Delta Could Disrupt Emerging World’s Post-COVID Recovery, Goldman Warns

https://www.nationandstate.com/2021/07/08/delta-could-disrupt-emerging-worlds-post-covid-recovery-goldman-warns/
Now that the Delta variant has revived fears about renewed COVID outbreaks from the US to Europe to Asia, a team of analysts at Goldman Sachs has published its analysis of the risks posed by the mutated strain. The conclusion: since full vaccination remains effective at […]

UK Faces “Potentially Catastrophic” Financial Hit As COVID Legacy Costs Mount

https://www.nationandstate.com/2021/07/07/uk-faces-potentially-catastrophic-financial-hit-as-covid-legacy-costs-mount/
UK Faces “Potentially Catastrophic” Financial Hit As COVID Legacy Costs Mount Overnight, the UK’s Office for Budget Responsibility, an independent financial watchdog housed within the UK Treasury, released its annual report on fiscal sustainability pointing to several risks to the UK’s public finances, which have deteriorated since the start of the pandemic. Perusing a summary […]