Thursday, May 23, 2024

Bill Bonner, "Capitalism Never Fails"

"Capitalism Never Fails"
If Ford wanted to make more money, he had to produce more cars... better cars... and make them more efficiently. That’s how an honest capitalist economy works. You get by giving, not taking.
by Bill Bonner

"Economic power, measured on the basis of GDP 
calculated according to the current rules, is fictitious."
- Emmanuel Todd

Dublin, Ireland - "We began this cogitation by wondering what was wrong with ‘the West.’ Even with 30 times more GDP firepower it still can’t win a war against Russia. Then we noted that economies can look good on paper - the Soviet Union, Nazi Germany - but actually be destroying wealth, rather than creating it.

We’ve seen, too, that much of Wall Street’s activity - supposedly trading capital assets - is little more than reckless gambling in meme stocks, NFTs, cryptos, and even good companies where the price bears no relationship to the real value. That is, these are not real capital assets at all - but phantoms and frauds. And if you looked at the trading activity in numbers alone, you’d get a very false idea of how much America’s businesses are worth.

Looking more closely, we began to wonder more broadly. How come we have to pass our bills onto our children - $35 trillion in government debt alone? How come the average guy hasn’t had a real salary increase in half a century? And in today’s news, Fortune: "A new American Airlines flight attendant will have a projected annual salary of $27,315 before incentives and taxes are collected. The union has also been calling out the low starting pay, which for a single-income household, meets the qualification criteria for the federal Supplemental Nutrition Assistance Program (SNAP), or food-stamp benefits, in several states including Massachusetts and New York. " 

Is capitalism failing? If we had a nickel for every time an economist proposed that “capitalism has failed,” we’d have to reinforce the floor joists. Capitalism never fails. It just adapts to whatever restrictions and circumstances we foolishly impose on it.

In the economy of Henry Ford, the US was a freer, ‘more capitalist’ nation. It respected the three things that make capitalism’s win-win deals possible - property rights, enforceable contracts, and real money (backed by gold). Today’s economy still has property rights, and contracts are still enforceable in government courts, though capitalism today is subject to much more meddling and intervention today than it was a hundred years ago.

Credit Money: The big difference is that today’s economy functions on credit, not on real money (cash). The change occurred on a now-familiar day, August 15, 1971. Thenceforth, foreign governments could no longer ‘settle up’ with the US by trading dollars for gold. The change was scarcely noticed. Even today, more people remember who won the 1971 world series - the Pirates - than the switcheroo that distorted the whole world’s money system.

Henry Ford got rich by making something people wanted. No government subsidies were needed. No vast “industrial transition” was announced. No grants given. No tax breaks. No program to set up filling stations all across the nation. Ford sold his cars at a profit. And he increased his workers’ wages, in real money, backed by gold. If Ford wanted to make more money, he had to produce more cars... better cars... and make them more efficiently. That’s how an honest capitalist economy works. You get by giving, not taking.

And today, yes, there are still a few genuine capitalists around. Elon Musk, for example, who is said to ‘sleep on the factory floor’ from time to time. And our new neighbor in Ireland, James Dyson, personally oversees the development and manufacture of hair dryers, vacuum cleaners and so forth. Most would-be billionaires, however, head not for the real economy of things, but for the financialized fantasies of Wall Street. They set up hedge funds... or go into venture capital... or do mergers and acquisitions; their hearts may be sooty, but their hands are clean.

Why Wall Street? Because that’s where the new credit-based money is. In Henry Ford’s day, credit came from savings... and savings came from work. You had to earn it - by creating more real GDP - before you could save it. You couldn’t just create new money or new savings “out of thin air.” Because, ultimately, you had to square up with gold.

But all that changed in 1971. Today, the big banks just borrow credit money from the Fed - often below the level of consumer price inflation. Thus, did the US begin another Misguided Economic Experiment... and another one that was destined to fail.

The new money system was based on an illusion - that the ‘credit’ provided by the feds was every bit as good as old-fashioned savings. That led to another, even more dangerous illusion, that the Fed could increase the amount of credit available as much as it wanted... and that it, rather than willing buyers and sellers, should determine interest rates. Naturally, they tended towards lower rates, not higher ones.

Donald Trump is a “low-interest rate guy” for a reason; that’s the way you make money in a fake money system. You borrow cheap, gamble on ‘assets’ (such as New York property) and, then based on the inflated values of your collateral assets, you’re able to borrow even more.

After 1971, activity (GDP) continued. But the new credit money and artificially low interest rates made it possible to buy things that didn’t really contribute to the nation’s wealth. The feds’ debt, for example, memorializes $35 trillion worth of spending. Every penny of it was recorded in the GDP. But like the Nazi’s bombs... or the Soviet’s soap... .most of what it bought was fake, worthless or transitory.

​​So too, much of the public’s $65 trillion in debt - all registered as GDP - was misspent. That is, the EZ credit made it possible for consumers and businesses to buy things they didn’t really need with money they didn’t really have. ​

But wait. The hamburger, eaten in 1995, and now recalled in monthly credit card payments, was real. It was consumed. It was enjoyed. Was it ‘fictitious’? No. But the GDP boost it gave was only half the story. That which credit giveth, repayment, default or inflation must taketh away. When the bill is finally paid, GDP should be reduced by a like amount (as money is taken out of the consumer economy to repay the loan). So, as long as debt is growing (with unpaid bills)... it gives us a false sense of real GDP.

It is as if you bought your neighbor’s car. GDP would go up. But later, suppose you returned the car and got your money back. Economically, it was a roundtrip to nowhere. No real increase in output. GDP recorded the sale as a plus... but not the repayment as a minus. ChatGPT explains:

United States Gross Domestic Product (GDP) does not include debt repayment. GDP measures the total value of all goods and services produced within a country over a specific period, typically a year or a quarter. It includes consumer spending, business investments, government spending, and net exports (exports minus imports). In other words, GDP only reflects half the transaction! Now, imagine that you borrowed the money to buy the car... and kept it. But still not paid for. GDP shows a ‘fictitious’ gain. It is ‘fictitious’ because there is an equal and opposite reduction to output still unrecorded.

Total US debt - now reaching $100 trillion - represents increases to output that still haven’t been paid for. How much of that is bogus GDP? Impossible to say. Some of that will be repaid. But the traditional relationship of debt/GDP is 1.4 to 1. So, the US should only have about $40 trillion of debt. Much of the rest is probably unpayable... about $60 trillion of phantom GDP, waiting to make the final leg of the roundtrip to nowhere. Hang on to your hat. It could be a wild ride."

Gregory Mannarino, "Scamdemic 2.0: 'The Government' Is Preparing Deployment Of New Vaxx"

Gregory Mannarino, AM 5/23/24
"Scamdemic 2.0: 'The Government'
 Is Preparing Deployment Of New Vaxx"
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Gregory Mannarino, PM 5/23/24
"Con-Job 2.0,
 New Pandemic Fear Grips The Markets!"
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Canadian Prepper, "Warning: What A Dr. Just Told Me About Surviving 'The End Of Days'"

Full screen recommended.
Canadian Prepper, 5/22/24
"Warning: What A Dr. Just Told Me
 About Surviving 'The End Of Days'"
Comments here:

Wednesday, May 22, 2024

"Scott Ritter: Putin's Nuclear Warning To NATO; Ukraine In Retreat; Israel In Big Trouble"

Full screen recommended.
Danny Haiphong, 5/22/24
"Scott Ritter: Putin's Nuclear Warning To NATO; 
Ukraine In Retreat; Israel In Big Trouble"
Comments here:

"Going Broke To Save Your Lifestyle; 56% Of Americans Don't Have $1,000"

Jeremiah Babe, 5/22/24
"Going Broke To Save Your Lifestyle;
 56% Of Americans Don't Have $1,000"
Comments here:

Gerald Celente, "Desperation Leads To Escalation"

Gerald Celente, 5/22/24
"Desperation Leads To Escalation"
"The Trends Journal is a weekly magazine analyzing global current events forming future trends. Our mission is to present facts and truth over fear and propaganda to help subscribers prepare for what’s next in these increasingly turbulent times."
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Musical Interlude: Deuter, "Along the High Ridges"

Full screen recommended.
Deuter, "Along the High Ridges"

"A Look to the Heavens"

“Will the spider ever catch the fly? Not if both are large emission nebulas toward the constellation of the Charioteer (Auriga). The spider-shaped gas cloud on the left is actually an emission nebula labelled IC 417, while the smaller fly-shaped cloud on the right is dubbed NGC 1931 and is both an emission nebula and a reflection nebula.
About 10,000 light-years distant, both nebulas harbor young, open star clusters. For scale, the more compact NGC 1931 (Fly) is about 10 light-years across.”

"Still, Sometimes..."

“The early bird catches the worm. A stitch in time saves nine. He who hesitates is lost. We can’t pretend we haven’t been told. We’ve all heard the proverbs, heard the philosophers, heard our grandparents warning us about wasted time, heard the damn poets urging us to seize the day. Still, sometimes, we have to see for ourselves. We have to make our own mistakes. We have to learn our own lessons. We have to sweep today’s possibility under tomorrow’s rug, until we can’t anymore, until we finally understand for ourselves what Benjamin Franklin meant: That knowing is better than wondering. That waking is better than sleeping. And that even the biggest failure, even the worst, most intractable mistake, beats the hell out of never trying.”
- “Meredith”, “Grey’s Anatomy”

The Poet: Mary Oliver, "What I Have Learned So Far"

"What I Have Learned So Far"

"Meditation is old and honorable, so why should I
not sit, every morning of my life, on the hillside,
looking into the shining world? Because, properly
attended to, delight, as well as havoc, is suggestion.
Can one be passionate about the just, the
ideal, the sublime, and the holy, and yet commit
to no labor in its cause? I don't think so.

All summations have a beginning, all effect has a
story, all kindness begins with the sown seed.
Thought buds toward radiance. The gospel of
light is the crossroads of - indolence, or action.
Be ignited, or be gone."

~ Mary Oliver

"Our True Friends..."

“Our true friends are those who are with us when the good things happen. They cheer us on and are pleased by our triumphs. False friends only appear at difficult times, with their sad, supportive faces, when, in fact, our suffering is serving to console them for their own miserable lives.”
- Paulo Coelho, "The Zahir"
Bob Dylan, "Positively 4th Street"

The Daily "Near You?

Sheboygan, Wisconsin, USA. Thanks for stopping by!

"What Foolish Forgetfulness..."

You live as if you were destined to live forever, no thought of your frailty ever enters your head, of how much time has already gone by you take no heed. You squander time as if you drew from a full and abundant supply, so all the while that day which you bestow on some person or thing is perhaps your last. You have all the fears of mortals and all the desires of immortals… What foolish forgetfulness of mortality to defer wise resolutions to the fiftieth or sixtieth year, and to intend to begin life at a point to which few have attained.”
- Denis Diderot

Judge Napolitano, "Prof. John Mearsheimer: How Will the War in Gaza End?"

Full screen recommended.
Judge Napolitano - Judging Freedom, 5/22/24
"Prof. John Mearsheimer: How Will the War in Gaza End?"
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"Believe Your Own Eyes – The Signs Of Imminent Collapse Are Undeniable"

"Believe Your Own Eyes – 
The Signs Of Imminent Collapse Are Undeniable"
by Mike Adams

"After the collapse of our western financial and government system, people are going to say it was "obvious" that the collapse was imminent. Because the signs were everywhere. But right now, just before the collapse runs its course, most people are still in denial. I say believe your eyes. The signs of insanity, incompetence, corruption and fraud are undeniable, powerful indicators that we are rapidly approaching the end game chapter of this civilization saga.

Today's Brighteon Broadcast news features two special reports on this, plus a new interview with Tina from the Satellite Phone Store, about emergency comms, sat phone supply chains, which satellite systems are more reliable, and much more."
View video here:

"How It Really Is"

 

Adventures With Danno, "Target Slashes Prices On Over 5,000 Products!"

Full screen recommended.
Adventures With Danno, AM 5/22/24
"Target Slashes Prices On Over 5,000 Products!"
"In today's vlog, I take you with me to check out some of the new 5000 product price cuts at Target. This is unbelievable as Target has dropped so many prices to help everyone save some money. Get your notepad ready as you do not want to miss these deals!"
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Dan, I Allegedly, "How Families Are Barely Surviving"

Full screen recommended.
Dan, I Allegedly, AM 5/22/24
"How Families Are Barely Surviving"
"We cover everything from skyrocketing insurance costs to unpredictable food prices, and the staggering rise in housing expenses. Families are getting $100'd to death with unexpected costs, and retirees are finding it impossible to budget. Plus, we'll touch on the looming foreclosure crisis and how banks are cracking down like never before. People cannot afford to retire right now. They cannot budget for retirement. Plus, families are finding that inflation is wiping them out. "
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Gregory Mannarino, "It's Getting Much Worse Faster, Now More Than Ever!"

Gregory Mannarino, AM 5/22/24
"It's Getting Much Worse Faster, Now More Than Ever!"
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Gregory Mannarino, PM 5/22/24
"The System Is Cracking, Economy Coming Apart"
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Bill Bonner, "The Credit Dollar"

"The Credit Dollar"
The government of the world’s most prosperous nation - the US - 
cannot pay its own way; it finances nearly a third of its spending - on credit.
by Bill Bonner

Dublin, Ireland - "CNN: "The Dow Jones Industrial Average closed above the 40,000 mark Friday for the first time in its 139-year history. Wall Street has been boosted in recent days by renewed hopes of rate cuts from the Federal Reserve that would loosen monetary conditions for consumers and businesses."

We sing the praises of the US economy. It has made millions of people very rich. It has accommodated millions of immigrants, who still pour over the border looking for a better life. It built shopping malls coast to coast. And, for excitement, the Kitty roars...

You probably have better things to do than to think about the strange world of ‘meme’ stocks. But they - along with dot.coms... cryptos... NFTs... Nvidia... and campaign speeches - show us how weird and wonderful our economy can be. Earlier this year, meme stocks - stocks that seem to have little real value but still exert some magic appeal - had fallen from the headlines. Then, suddenly, “Roaring Kitty,” an influencer with 1.3 million followers, sent forth a picture of a gamer leaning forward in his chair. That was all it took. Aficionados interpreted it as telling them that it was time to buy. AMC, a chain of movie theaters, rose 308%. GameStop, an electronic game retailer, rose 271%. And then, easy come, easy go. By the end of last week, the stocks had crashed again.

This kind of market action has little to do with capitalism. Meme speculators were not guided by an ‘invisible hand’ to make others’ lives better. They were not funding more theaters at AMC or creating more games at GameStop. They were just having some fun - with money.

Henry Ford showed how real capitalism used to work - on cash, not credit. In 1914, he doubled the wages of his workers in his Piquette Street auto plant. At $5 a day they were now among the best paid of America’s working class. And with a price tag of about $700, they could buy one of Ford’s Model Ts for the equivalent of about 140 days on the job. The common working man bought his two main assets - his house and his auto - with his savings and remained largely debt free.

Today, Ford’s best-selling vehicle is the F-150 pickup with a base price of $36,000. Three out of four buyers pay “on credit.” And without credit - car loans and mortgages - few people could afford either a house or a car.

Last year, Newsweek reported on a new wage settlement for Ford workers: "New recruits at Ford are in line for a 68 percent hike in their starting salaries, positioning their hourly rate at more than $28 ($58,240 annually). However, the crown jewel of the agreement is the change planned for Ford's lowest wage earners. Throughout the contract's span, low-wage employees can expect their compensation to soar by 150 percent."

According to these numbers, it now takes longer (more hours spent on the job) for the autoworker to buy his ride than it did 110 years ago. Why? Despite the achievements of Alan Greenspan, Mark Zuckerberg, Roaring Kitty et al, is there something wrong?

The government of the world’s most prosperous nation - the US - cannot pay its own way; it finances nearly a third of its spending - on credit. And the public bought everything from autos to cheeseburgers on credit. Now, who’s going to pay its $65 trillion in debt? Tomorrow’s public? With what? More credit?

The answers to these questions are at the heart of our hypothesis. We’re wondering how come the US has run up so much debt... how come its economy seems to serve the rich, very well, but not the rest of the population... and how come it now seems to be headed for at least a crisis, and probably a catastrophe. Looking ahead, what we’ll see is that when the US switched from cash to credit it mistook the new credit dollar for a bird-in-hand dollar. But credit is not cash. And what we will find out, eventually, is how much the credit dollar, in the bush, is actually worth. More to come."

Tuesday, May 21, 2024

"WTF Alert: Nukes Actually Move Into Firing Position; Space Weapons Deployed; Iran Bombshell Coming"

Full screen recommended.
Canadian Prepper, 5/21/24
"WTF Alert: Nukes Actually Move Into Firing Position; 
Space Weapons Deployed; Iran Bombshell Coming"
Comments here:

Gerald Celente, "We, The Plantation Workers Of Slavelandia Are Serfs Of Robber Barons 2.0"

Strong language alert!
Gerald Celente, 5/21/24
"We, The Plantation Workers Of Slavelandia
 Are Serfs Of Robber Barons 2.0"
Comments here:

Jeremiah Babe, "They're Going To Crash The Entire System"

Jeremiah Babe, 5/21/24
"They're Going To Crash The Entire System"
Comments here:

Musical Interlude: Ludovico Einaudi, "Primavera"

Full screen recommended.
Ludovico Einaudi, "Primavera"

A Comment, and so very true...
@jackiseaward: "This is one of the most beautiful pieces of music I've ever heard. The depth of feeling this song provokes is without words. For those who gave it a thumbs down, you simply have no appreciation what the art of music is. Thank you Ludovico for sharing some of your soul with us, I feel blessed."

"A Look to the Heavens"

“What will become of these galaxies? Spiral galaxies NGC 5426 and NGC 5427 are passing dangerously close to each other, but each is likely to survive this collision. Typically when galaxies collide, a large galaxy eats a much smaller galaxy. In this case, however, the two galaxies are quite similar, each being a sprawling spiral with expansive arms and a compact core. As the galaxies advance over the next tens of millions of years, their component stars are unlikely to collide, although new stars will form in the bunching of gas caused by gravitational tides.

Close inspection of the above image taken by the 8-meter Gemini-South Telescope in Chile shows a bridge of material momentarily connecting the two giants. Known collectively as Arp 271, the interacting pair spans about 130,000 light years and lies about 90 million light-years away toward the constellation of Virgo. Recent predictions hold that our Milky Way Galaxy will undergo a similar collision with the neighboring Andromeda Galaxy in a few billion years.”

"The Life Of Man..."

"The life of Man is a long march through the night, surrounded by invisible foes, tortured by weariness and pain, towards a goal that few can hope to reach, and where none may tarry long. One by one, as they march, our comrades vanish from our sight, seized by the silent orders of omnipotent Death. Very brief is the time in which we can help them, in which their happiness or misery is decided. Be it ours to shed sunshine on their path, to lighten their sorrows by the balm of sympathy, to give them the pure joy of a never-tiring affection, to strengthen failing courage, to instill faith in times of despair."
- Bertrand Russell

"It's What It Is..."

"Life is not what it's supposed to be. It's what it is.
The way you cope with it is what makes the difference."
- Virginia Satir

"Crabs in a Bucket"

"Crabs in a Bucket"
by Sarah Robinson

"When I was a little girl, I lived very close (an hour and fifteen minutes) to the Florida panhandle beaches. Which meant we spent a TON of time there. Early evening was one of my favorite times to walk the beach with my mom and my older brothers. We were all clean and fed and slightly sun weary but still desperate to be outside. So, we would grab flashlights, dip nets and a bucket and search the ocean’s edge for crabs. We would catch a bucket full in an evening and drag them back home where my mom or my grandmother would cook them up into something delicious. (Yes, I was traumatized by the crabs being put into boiling water, but that story is for another day.)

The problem was that as we made that long walk home carrying crabs, there were always one or two who figured out how to climb up to the edge of the bucket in an attempt to escape. Every now and then we would have to tap the edge of the bucket to knock them back down. Because I was too little to carry the bucket very far, I got the job of watching for potential escapees. And I noticed something... well… odd. More often than not, as a crab would begin to inch its way higher to the edge of the bucket, the other crabs would latch on to him and pull him back down. I watched this scenario play out again and again, year after year.

Fast forward to this morning. As I was drinking my coffee and perusing my twitter stream, and up pops this gem from @paulocoelho (He wrote "The Alchemist", one of my all time favorite books): “Only mediocrity is safe. Get ready to be attacked, and be the best.” Maybe it was the early hour. Maybe it was my post-event mushy brain. I don’t know. But the minute I read Paulo’s tweet, I thought of those crabs in a bucket. So I sent him this tweet: “I’m thinking of crabs in a bucket. They always try to pull down the one who’s figured out how to escape.”

Paulo liked my analogy so much that he retweeted it and I’ve spent my morning connecting with people all over the world who liked it, too. It resonated deeply for a lot of people. I did a quick Google search and discovered that “Crab Mentality” is actually an official phrase that roughly means “if I can’t have it, neither can you.” And it is talked about. A lot.

There will always be people who will subtly or not so subtly try to keep us from escaping. Why? Because our escape threatens their mediocre existence. Pulling us down, sabotaging our efforts, picking apart our brilliant ideas – all of that keeps them feeling safe. And living undisturbed mediocre lives.

So what if we added a new piece to the crab mentality picture? Imagine a crab, or a group of crabs on the other side of the bucket building a ladder to aid your escape. They managed to crawl out of the bucket in spite of all the energetic attempts to pull them backwards. Because they’ve tasted freedom and they know your struggle, they are putting energy into aiding and abetting your escape.

I believe that for those of us determined to get out of the bucket, such a group exists. It may take some time to find them, but they are there, ready to throw a safety rope over the edge and pull us out. Start listening for them. Start looking for them. They are there. Reach just a little further and they’ll meet you at the edge of the bucket."

The Daily "Near You?"

Tewkesbury, Gloucestershire, United Kingdom.
Thanks for stopping by!

"A Real Church Sign"

"Oh yeah, we're doing fine, thanks for asking."

"Dazed Lemmings Can't Bridge The Reality Gap"

"Dazed Lemmings Can't Bridge The Reality Gap"
by Zen Gardner

"Ever wonder why people can't make the leap to real awareness of what's going on? Why do so few people seem to care about the dangers dissolving their health, wealth and chances for survival in an engineered conflagration of mythic proportions that is already descending on their heads.

As the gap between reality and manipulated public perception grows, it may just be too big a leap for many at this point. Having been dumbed-down and unresponsive for so long, it's too much for them to take in. Sad, but again, that's reality. Hey, why wake up when everything's such a bummer? That's the underlying mentality. The thing is, this is a conditioned response. Overload and recoil. And it's been going on a long, long time.

Why? Like the dumbing down effect of fluoride and chemtrails and adulterated food, it eventually suppresses natural responses. When the real alert presents itself, the subject will not be able to react and protect himself. Why all the dramatic end of the world sci-fi movies? Why the emphasis on violence and horror movies and graphic, destructive wars? Why does the news major on the bad events of the day? Why the combative gladiator sports, emphasis on technology instead of humanity, and mind-numbing crass consumerism and sexualization of society? This is deliberate social engineering, and that's the biggie. It's all engineered..and that's the last thing most people want to realize. And it usually is.

The Power of Cognitive Dissonance: The world has become essentially schizophrenic in outlook. Being told one thing while the exact opposite is happening before their eyes for so long, the "dissonance" created by this conflict causes humanity to shut down. America is the perfect example. Ostensibly fighting for "freedom and liberty" we commit genocide and destroy nation after nation. To protect our liberties the government has overturned the Bill of Rights and made the Constitution a mockery. Yet the populace sits and takes it. Why? Too big of a leap. If it turned out they've been completely conned by a massive manipulated agenda they may just completely break down. And subconsciously the horror of that reality is therefore a "no". Even if it were true they're at the point they'd rather not know.

I'll Take Conscious Reality. "Why all the negativity?" is what you'll hear a lot of the time when you bring these things up. The answer, as David Icke often says, is that ignorance is negative. Truth is empowering, no matter how awful it may be sometimes. And at this point in history the more you learn the more negative it may seem, with the Controllers' agenda in full final-phase swing. But so what. Things haven't changed all that much. The purpose of life is to rediscover who you truly are, and that wonderful awakening makes everything else pale in comparison. Our mission then becomes to inform and empower, share and encourage. The same one it always has been. That it's taking this kind of extreme compression to awaken the slumbering masses is really no surprise, and ultimately a gift from the Universe to help people back into the real world.....that of conscious loving awareness."
"Awaken from slumber, one and all..."

"Walmart Is Destroying Thousands Of Big Box Retailers As Bankruptcies Continue To Soar"

Full screen recommended.
Epic Economist, 5/21/24
"Walmart Is Destroying Thousands Of 
Big Box Retailers As Bankruptcies Continue To Soar"

"Walmart's impact on the United States is undeniable. From its humble beginnings as a small-town discount store to its current status as a global retail behemoth, the company has revolutionized how people shop, businesses operate, and communities experience retail.

However, the “Walmart Effect” has a much darker side than people think. For decades, the retail giant has been contributing to the downfall of competing big-box chains and grocery stores, as well as hundreds of thousands of small businesses. At the same time, Walmart is responsible for impoverishing communities, creating imbalances on the supply chain, and hurting the American economy in ways the public can't even imagine. But everyone needs to know what is truly behind Walmart’s 500 billion-dollar empire. And that's what we're going to expose today.

If you hear about the opening of a new Walmart store in your area, beware. That may not be as advantageous for both customers and the local economy as it may seem. Whenever Walmart starts to operate in a community, the most immediate impact is felt by local retail workers, who become more at risk of losing their jobs or suffering a pay cut.

Researchers found that Walmart pays lower wages to its hourly associates than what other local businesses pay comparable workers, estimating that the wage difference is at least $3 per hour. With Walmart workers earning less than other retail workers, the retail giant helps to push down average retail wages and health coverage rates in the area.

On top of that, a study published in the Journal of Urban Economics, which examined about 3,000 Walmart store openings nationally, found that each store caused a net decline of about 150 jobs as competing retailers were forced to downsize or close down permanently.

These shifts can explain the findings of another study published in Social Science Quarterly, which cut straight to the bottom line: neighborhoods where Walmart opens end up with higher poverty rates and more food-stamp usage than places where the retailer does not expand."
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Gregory Mannarino, "They Want Us Dead! Hunger In America Hits A 20 Year High! Homelessness Skrocketing!"

Gregory Mannarino, 5/21/24
"They Want Us Dead! Hunger In America Hits A 20 Year High! 
Homelessness Skrocketing!"
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"How It Really Is"

 

Happy Memorial Day!

Travelling with Russell, "I Went to the Moscow Consumer Electronics Show"

Full screen recommended.
Travelling with Russell, 5/21/24
"I Went to the Moscow Consumer Electronics Show"
"ExpoElectronica is the largest international exhibition of electronics in terms of the number of exhibitors and visitors in Russia. ExpoElectronica has been a key business event in the industry, bringing together developers, manufacturers and distributors of electronics and end users."
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"Israel Assassinated Raisi?"

Full screen recommended.
Times Of India, 5/20/24
"Israel Assassinated Raisi? Stunning Theories 
Surround Crash Of Iran President's Chopper"
Comments here:
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Full screen recommended.
Times Of India, 5/21/24
"Raisi Crash: Rescuers Drop A Bombshell; 
Reveal Chopper's 'Key Device Missing Or Turned Off'"
"Shocking new details have emerged in the investigation of the helicopter crash that killed Iranian President Ebrahim Raisi and other high-ranking officials. Turkish Transport Minister Abdulkadir UraloÄŸlu revealed that the helicopter’s transponder system, which broadcasts height and location information, was either missing or turned off, casting doubt on the nature of the incident. While Iranian investigation team is now examining whether weather checks were made before the flight and considering the possibility of sabotage."
Comments here:
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Full screen recommended.
Danny Haiphong, 5/21/24
"Raisi's Death Just Changed Everything
 For Iran, Did Israel Do It?"
"The untimely death of Iran's President Ebrahim Raisi caused a global firestorm, with new reports coming out that the US feared WWIII over the event. The Duran and Glenn Diesen joined for a roundtable and we discussed whether foul play was involved and what to expect for Iran, the region, and the world moving forward."
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Adventures With Danno, "Memorial Day Sales At Meijer, You Won't Believe The Deals I Found!"

Full screen recommended.
Adventures With Danno 5/21/24
"Memorial Day Sales At Meijer, 
You Won't Believe The Deals I Found!"
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Dan, I Allegedly, "Insider Info - This Bank Is Doomed!"

Full screen recommended.
Dan, I Allegedly, 5/21/24
"Insider Info - This Bank Is Doomed!"
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Bill Bonner, "A Misguided Economic Experiment"

"A Misguided Economic Experiment"
Up until the mid-‘70s, the wealth of the rich and poor rose... together.
At more or less the same rate. Then, they began to diverge...
little by little at first... and then by a lot.
by Bill Bonner

Dublin, Ireland - "Our wonder for this week is how an economy... said to be the finest the world has ever seen...with capital in abundance... talent and skills drawn from all over the planet... more Ph.Ds and engineers than ever in history...and guided by the geniuses at the Fed and in the Capitol...could be such a dud. Unlike the US economy up until 1975... and unlike the Chinese economy 1979-2024... it has not improved the lot of the typical citizen.

This is not to say that the median person is not better off. Today, for better or worse, we have electronic gizmos that we didn’t have in the 1970s. We can spend our whole lives hunched over our laptops... perhaps sitting in coffee shops or a basement office... playing games... and talking to undressed women with Russian accents. Is that progress, or what? We have TikTok, Facebook, X... AI... cryptos... Trump sneakers... We even have cars that will create their own traffic accidents. No human intervention required.

In 1914, Henry Ford doubled wages in his auto factory - to $5 a day. A job at Ford was a ticket to middle-class prosperity. Detroit became the most prosperous city in the country. But workers in our new industries today, including those of our biggest employers, often live in shocking poverty. At least, that was the conclusion of a study done of Amazon’s warehouse staff:

“In this report, we present findings on economic insecurity among Amazon’s frontline warehouse workforce, drawing on a national survey of 1,484 workers across 451 facilities in 42 states. Key findings include:

“53% OF WORKERS EXPERIENCED ONE OR MORE FORMS OF FOOD INSECURITY in the previous three months.

“48% OF WORKERS EXPERIENCED ONE OR MORE FORMS OF HOUSING INSECURITY in the previous three months.

“MORE THAN HALF (56%) HAVE NOT BEEN ABLE TO PAY ALL THEIR BILLS without a remaining balance in the previous three months.

“ONE-THIRD OF WORKERS (33%) HAVE USED ONE OR MORE PUBLICLY FUNDED ASSISTANCE PROGRAMS in the previous three months, including 23% who have used the Supplemental Nutrition Assistance Program (SNAP).”

Let’s see... at $5 a day, a Ford assembly-line worker was able to buy a $20 US gold coin every four days. (We use gold as a reliable measure of inflation.) Today, a warehouse worker at Amazon makes $17 per hour... times 8 hours, equals $136 per day. With the price of a one-ounce gold coin now around $2,300, this means it takes more than 16 days - or four times as long - for today’s worker to buy the same coin. What gives? What’s wrong with America’s economy?

Today, we will not let the cat out of the bag, completely... but we will open up the bag and take a peek inside. We saw yesterday that the Soviet Union took raw materials, and following the logical precision and dumbass theories of its planners, worked them up into finished goods of such inferior quality that they were actually worth less, on the world market, than the resources that went into making them.

Death by Government: That is why, when the Soviet Union went to Misguided Economic Experiment heaven, its entrepreneurs and oligarchs went back to producing raw materials. The Hitlerian economy of Germany 1933-1945 was a similar success. It put people to work. It made the trains run on time. It made the smokestacks from Bavaria to Prussia belch smoke. But what it produced - guns, tanks, chemicals and bombs - did not make people better off. It made them worse off.

In each case, you’ll notice the causal relationship. The government imposed its will on the economy... turning it away from producing the things people wanted... to producing the things insiders wanted.

And the US? It began its Misguided Economic Experiment in 1971. Thenceforth, it continued to be a powerhouse of output. But the output shifted... subtly... almost unnoticed... from the goods and services that made people wealthier and better off... to an ersatz form of wealth itself. Wall Street got rich (after 1982). Detroit got poor. The shift was a spectacular success - for some. Unfortunately, it was a dismal failure for most.

Up until the mid-‘70s, the wealth of the rich and poor rose... together. At more or less the same rate. Then, they began to diverge... little by little at first... and then by a lot. From our friend David Stockman: "Since 1989... the net worth of the top 0.1% has soared from $1.8 trillion to just under $20 trillion. That’s a gain of $138 million per household. 

By contrast, the aggregate net worth of the bottom 50% or 66 million households has risen from $0.7 trillion to $3.6 trillion. That’s a gain of just $44,000 per household. [Mostly from an increase in house prices.]

Accordingly, the top 0.1% gained 3,100X more net worth each than the bottom half of America’s households."

So we see, the US economy was not a total flop for everyone. But something went very wrong. Tune in tomorrow as we look at our hypothesis: another Misguided Economic Experiment gone wrong."
"The more I see of the monied classes,
the better I understand the guillotine."
- George Bernard Shaw

Monday, May 20, 2024

"The Gap Between The Rich And The Poor Is Larger Than Ever, And Frustration Is Growing To Very Dangerous Levels"

"The Gap Between The Rich And The Poor Is Larger Than Ever,
 And Frustration Is Growing To Very Dangerous Levels"
by Michael Snyder

"Have you ever felt like you can never seem to get ahead no matter how hard you try? If so, you are definitely not alone. The gap between the ultra-wealthy and the rest of us has never been greater, and more wealth is being transferred to the top of the pyramid with each passing day. Unfortunately, our economy has evolved into a highly centralized system that is designed to drain wealth from those that do not own wealth-producing assets and transfer it to those that do own wealth-producing assets. Sadly, even most of our homes and most of our vehicles have been turned into wealth-producing assets by the elite. Every month when you make your mortgage payment and your vehicle payment, you are making the wealthy even wealthier. The entire system is designed to get you deep into debt and keep you paying on that debt until you die.

As we have seen in recent years, those that manage the system will do whatever it takes to protect the wealth of the elite. The Federal Reserve pumped trillions of dollars into the system to prop up the value of financial assets, and it worked. Right now, the Dow Jones Industrial Average is hovering around 40,000 and those that own stocks are living the high life. But who owns most of the stocks? According to Federal Reserve data, the wealthiest 10 percent of all Americans own a record high 93 percent of all the stocks…The wealthiest Americans have never owned so much of the stock market, with the top 10% now holding a record 93% of US equities, according to Federal Reserve data. On the flip side, the poorest 50 percent of all Americans own just 1 percent of all the stocks


Still, stock ownership is skewed toward the top: by comparison, the bottom 50% of Americans owned just 1% of all stocks and mutual fund shares in the third quarter, central bank data shows. Of course stocks are just one form of wealth. But when you add in all other forms of wealth, the bottom 50 percent of the U.S. population still only owns just 2.6 percent of all the wealth. Tens of millions of Americans have lost faith in the system and are becoming increasingly restless, and our politicians have been trying to keep them pacified with handouts.

At this point, a whopping 42 million Americans receive food stamp benefits each month, and much of that money is spent on junk food…"An alarming study has spotlighted how 42 million food stamp recipients spend their welfare handouts on ultra-processed junk food. Coca-Cola, Sprite and other soft drinks are the most commonly-bought items via the $135 billion-a-year Supplemental Nutrition Assistance Program (SNAP), a new study says. Candy, potato chips, frozen pizza, ice cream, cookies, and other ultra-processed food dominates the top 20 items, says a report from the Economic Policy Innovation Center (EPIC)."

A lot of those that are receiving government assistance are actually employed. But the cost of living has become so oppressive that even people working for some of the biggest companies in America can’t afford the basics…"Five years after Amazon.com Inc. raised wages to $15 an hour, half of warehouse workers surveyed by researchers say they struggle to afford enough food or a place to live.

The national study, published Wednesday by the University of Illinois Chicago’s Center for Urban Economic Development, asked US employees about their economic wellbeing, including whether they’d skipped meals, went hungry, or were worried about being able to make rent or mortgage payments.

Fifty-three percent of respondents reported that they’d experienced one or more forms of food insecurity in the prior three months, and 48% experienced one or more forms of housing insecurity. Workers who said they took unpaid time off after getting hurt on the job were more likely to report trouble paying their bills, the researchers found."

Today, approximately 40 percent of the entire U.S. population is either living in poverty or is considered to be among the ranks of “the working poor”. In order to maintain the same standard of living as it did in January 2021, it now costs the average American family $12,000 more per year. If your income has not increased by $12,000 a year since January 2021, you are falling behind.

And now that economic conditions are starting to deteriorate at a frightening pace, Americans are becoming increasingly pessimistic about where the economy is heading next…"After a spurt of optimism, Americans are feeling a little more glum about the economy - again. Consumer sentiment, a gauge of Americans’ economic perceptions, is at a six-month low, according to a closely watched index by the University of Michigan. The measure notched its biggest drop since 2021, reflecting the persistent tug of inflation on household budgets and fueling fears that rising prices, unemployment and interest rates could all worsen in the coming months.

That pessimism is altering consumers’ spending habits. McDonald’s, Home Depot, Under Armour and Starbucks all recently reported disappointing earnings, as people cut back on fast food, kitchen renovations, sneakers and afternoon lattes."

Frustration with the economy is going to be a major theme during the next few years here in the United States. Of course the entire world is grappling with a system that is leaving way too many people behind. According to Oxfam, most of the global population has gotten poorer since the turn of the decade…"Oxfam’s new report, Inequality Inc., explores the disparity between the uber-wealthy and the rest of society. Since 2020, five billion people have become poorer, while the world’s five richest men have more than doubled their fortunes - at a rate of $14 million per hour."

Just like in the United States, the gap between the wealthy and the poor globally has reached a level we have never seen before.

Since 2020, Oxfam says that billionaires have gotten “$3.3 trillion richer”…"Hundreds of millions of people are struggling to keep up with the cost of living; meanwhile, billionaires are $3.3 trillion richer than they were in 2020. This is not a coincidence. When we analyzed the world’s largest corporations, we found that a billionaire is running or the principal shareholder of 7 out of 10 of them."

Such a system is not sustainable. If most of the global population is steadily getting poorer and a tiny sliver of the global population is becoming fabulously wealthy, it is only a matter of time before the entire system comes crashing down. Hundreds of millions of people are becoming deeply angry and deeply frustrated, and civil unrest will erupt in major cities all over the planet during the period of great chaos that we are entering.

Today, the world is dominated by ultra-powerful governments, ultra-powerful banks and ultra-powerful corporations. The little guy is being absolutely crushed, but it won’t be too long before the deeply corrupt system that the ultra-wealthy have created suddenly implodes right in front of their eyes."

Jeremiah Babe, "Brace For Impact, The World Is On The Brink Of Chaos"

Jeremiah Babe, 5/20/24
"Brace For Impact, 
The World Is On The Brink Of Chaos"
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Musical Interlude: Deuter, "Sea and Silence"

Deuter, "Sea and Silence"

Musical Interlude: Two Steps From Hell, "Downstream"

"We all know that something is eternal. And it ain't houses and it ain't names, and it ain't earth, and it ain't even the stars... everybody knows in their bones that something is eternal, and that something has to do with human beings. All the greatest people ever lived have been telling us that for five thousand years and yet you'd be surprised how people are always losing hold of it. There's something way down deep that's eternal about every human being."
- Thornton Wilder
Despite it all, despite ourselves, we struggle, facing life's hardships,
Learning, growing, hurting but never giving up.
Reaching, climbing higher, to be better, forever,
trying to remember Who you are...
Two Steps From Hell, "Downstream"