StatCounter

Wednesday, December 18, 2024

Bill Bonner, "Send in the Clowns"

The greatest little whorehouse, well, anywhere...
"Send in the Clowns"
Even at the top, lawmakers are going with the DODGE, the Department 
of Deceiving the public about Government Efficiency. Its fantasy goal is 
to make sure the brightwork is polished and the chow is hot.
by Bill Bonner

Baltimore, Maryland - "Another day. Another dope trying to make sure the DOGE is neutered. Fox News: "Sen. James Lankford (R-Okla.) said federal employees will help with Department of Government Efficiency (DOGE) efforts by sharing their ideas for changes within the government. “We are reaching out to federal employees. They see it firsthand. Many of these employees are frustrated, as well. They are taxpayers, as well. They want to see it be more efficient. We are asking them to also share their ideas with us so we can actually get this thing fixed,” Lankford said on Fox News."

The DOGE has its work cut out for it. It aims to cut $2 trillion in spending. Every dollar goes to someone, so that represents as many as 20 million $100,000 paychecks. Musk and Ramaswamy are going to need all the help they can get. But really? Get the feds to prune off the branches where they rest their own plump derrieres? How likely is that?

If they were seriously interested in cutting costs, senators could simply vote against unfunded, reckless appropriations bills. There’s one in front of them right now. The Western Journal: "History appears to be repeating itself this week as Congress has brokered an agreement on a massive year-end catch-all spending bill - something it has often done in recent years just before leaving Washington for Christmas break."

But these clowns rubber stamp every jackass piece of legislation that comes down the pike; that’s why we have a $36 trillion national debt. Now they bow their heads and cross their fingers, claiming to be dead set on ‘efficiency.’ Donald Trump reportedly said he wanted the ‘kind of generals that Hitler had.’ We presume he was impressed by their ability to get things done. Maybe he was thinking of the way they put down the Warsaw uprising... maybe not the Battle for Stalingrad or WWII itself.

Whatever was going through his head, Mr. Trump is in a better position than anyone to batten down the hatches and tighten up the ship. But he’s way off course. Here’s Barrons: "Donald Trump’s tax-and-tariff economic policies and the U.S.’s mounting deficit could drive yields on benchmark 10-year Treasury notes to their highest level since 2000, T. Rowe Price has warned. The investment manager’s CIO for fixed income Arif Husain said in a report that the yield could top 5% early next year, then rise even higher.

In other words, Cap’n Trump is set to increase deficits, not shave them. A shame, because all he would have to do is what Javier Milei did, tell his generals, lieutenants, and housekeepers that that he will not tolerate any more debt. But even at the top, lawmakers are going with the DODGE... the Department of Deceiving the public about Government Efficiency. Its fantasy goal is to make sure the brightwork is polished... the chow is hot... and the uniforms are pressed. Just don’t turn the ship around!

Keeping the lounge tidy didn’t keep the Titanic from sinking. Nevertheless, tidiness is the new objective... and it is so important that even the Democrats are coming up the gangplank. Fox continues: "Some Democrats have jumped on board, as well: Reps. Jared Moskowitz (D-Fla.) and Greg Landsman (D-Ohio) have said they will join the DOGE Caucus. Rep. Ro Khanna (D-Calif.) took aim at the U.S. defense budget for potential cuts doled out by DOGE in an op-ed published last week. Sen. Bernie Sanders (I-Vt.) earlier this month said Musk was “right” about defense spending, because the Pentagon has “lost track of billions.” 

Hey, anybody can lose a few bucks here and there. But it takes talent and skill to misplace billions. That’s the kind of expertise we need on the DODGE team, right? Here’s the latest from Duffel Blog (believed to be tongue-in-cheek): "New Department of Gov. Efficiency seeks majors and staff NCOs as military liaisons." The new agency is seeking military-grade efficiency.

According to sources in the White House who spoke on the condition of possible future book deals, Musk and Ramaswamy are seeking highly capable military personnel to support the new agency’s mission and bring military-grade efficiency to the often slow and bogged-down federal government. 

[Theo] Redding, a Virginia-based defense contractor, was one of the early hires for the Department of Government Efficiency (DOGE). He hit the ground running by publishing a 732-slide PowerPoint presentation outlining critical elements of new efficiency methodologies. 

The next steps are obvious. Convene a series of meetings with other agencies involved with the efficiency drive. Dig into the details. Study the ‘ideas’ put forward by the feds themselves. Put out the call for bids to develop a new, AI-enhanced multi-million-dollar cost-buster program. Compare the bids... perhaps putting a few procurement specialists on the case to help analyze them. Then, await the report.

After all the obvious inputs, through-puts, and put options have been put into it, the AI report can be put to the DODGE and to a special committee of Congress... which can then draw its own conclusions, make its own recommendations, and put it in the trash. This whole process will, of course, take time. When it is complete... that is to say, after Hell freezes over... the budget cutting can begin.

Meanwhile, Congress aims to avoid a government shutdown on Friday by passing a more than 1,500 page spending bill later today. You can read a draft of the bill (if you dare) by going here. What’s in it? Only the lobbyists who wrote it know!"
Too bad the joke's on us...

Adventures With Danno, "Is Sam's Club Even Worth It Anymore?"

Full screen recommended.
Adventures With Danno, 12/18/24
"Is Sam's Club Even Worth It Anymore?"
Comments here:
o

Tuesday, December 17, 2024

"The Trouble Is..."

 

"Bombshell! Putin Tells NATO Prepare for War as Top General Slain, Turkey Invades Syria"

Danny Haiphong, 12 17/24
"Bombshell! Putin Tells NATO Prepare for War 
as Top General Slain, Turkey Invades Syria"
"Vladimir Putin has issued a dire warning to NATO as tensions spiral out of control following a new attack on Moscow which took out a top general of Nuclear, Chemical, and Biological Defense. Geopolitical analyst and journalist Ben Norton returns to break down the latest developments in the multipolar world, including its geopolitical and economic trajectory following the fall of Syria and a coming invasion from Turkey which has the world bracing for war."
Comments here:

"Millions Are Going Bankrupt As Credit Crisis Reaches Critical Level!"

Full screen recommended.
The Atlantis Report, 12/17/24
"Millions Are Going Bankrupt
 As Credit Crisis Reaches Critical Level!"
"Today, we're going to expose the darkest side of the American credit crisis. American households are spending a thousand dollars more every month just to purchase the same goods and services as three years ago. It's no wonder why so many people are turning to credit cards to make ends meet. But the situation is becoming so extreme that now almost half of all Americans are on a hamster wheel of credit card debt, according to a new report. That includes children, Gen Z, Millennials, and pretty much every future generation. Recent data shows that there are millions of children in the U.S. drowning in debt. At the same time, seniors are literally unretiring to be able to pay off their balances, and conditions are growing worse with each passing month. Today, we uncover the dark side of the Credit Crisis in America."
Comments here:

"Alert! Drones Looking For A Nuclear Weapon In Neighborhoods"

Jeremiah Babe, 12/17/24
"Alert! Drones Looking For A 
Nuclear Weapon In Neighborhoods"
Comments here:

Adventures With Danno, "I Don't Even Know How To Explain This, Here We Go"

Adventures With Danno, PM 12/17/24
"I Don't Even Know How To Explain This, Here We Go"
Comments here:

Gerald Celente, "DOW Is On Worst Losing Streaks Since 1978 - Crash Coming?"

Strong language alert!
Gerald Celente, 12/17/24
"DOW Is On Worst Losing Streaks Since 1978 - 
Crash Coming?"
"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."
Comments here:

"Walmart Is Closing Stores Ahead Of The Busiest Shopping Season As Sales Continue To Drop"

Full screen recommended.
Epic Economist, 12/17/24
"Walmart Is Closing Stores Ahead Of The
 Busiest Shopping Season As Sales Continue To Drop"

"For a massive chain like Walmart to be closing stores right as we enter the busiest shopping season of the year, something really bad must be going on. A few weeks ago, the company’s CEO Doug McMillion shared a bleak outlook for holiday sales, and warned investors about a profit squeeze. But the fact that the retailer is closing multiple locations and leaving several communities without their local grocery stores just before Christmas is suggesting that the situation is far worse than they are telling us. The truth is that even the biggest retail chain in the U.S. and the world is bleeding money right now. And today, we're going to expose how deep Walmart’s wounds really are."
Comments here:

Musical Interlude: Moby, "Love Of Strings"

Full screen recommended
Moby, "Love Of Strings"

"Life is the hyphen between matter and spirit."
- A.W. and J.C. Hare, 
"Guesses at Truth, by Two Brothers," 1827

"A Look to the Heavens"

"Gorgeous spiral galaxy NGC 3521 is a mere 35 million light-years away, toward the constellation Leo. Relatively bright in planet Earth's sky, NGC 3521 is easily visible in small telescopes but often overlooked by amateur imagers in favor of other Leo spiral galaxies, like M66 and M65. It's hard to overlook in this colorful cosmic portrait, though. Spanning some 50,000 light-years the galaxy sports characteristic patchy, irregular spiral arms laced with dust, pink star forming regions, and clusters of young, blue stars.
Remarkably, this deep image also finds NGC 3521 embedded in gigantic bubble-like shells. The shells are likely tidal debris, streams of stars torn from satellite galaxies that have undergone mergers with NGC 3521 in the distant past."

Chet Raymo, “At Home In An Infinite Universe”

“At Home In An Infinite Universe”
by Chet Raymo

“They are questions that bedeviled thinkers for thousands of years: Is the universe infinite or finite, eternal or of a finite age? It is certainly hard to imagine a universe that extends without limit in every direction, or a universe without a beginning or end. It is equally difficult to imagine a finite universe; what is beyond the edge? Or a beginning or end in time; how can something come from nothing? how can what is cease to be?

The problems are so intractable philosophically that their resolution has generally been left to the theologians, which from a philosophical (or scientific) perspective offers no solution at all. Giordano Bruno was burned at the stake for proposing a philosophical resolution (an infinite universe) that offended theology.

An escape from befuddlement is provided by Einstein’s theory of general relativity, which - for example - can describe a finite universe without a boundary, as the “two-dimensional” surface of a sphere is finite and without an edge. Unfortunately, multi-dimensional curved space-time is so counterintuitive that it is difficult to get one’s head around it without mastery of the mathematics. Given a choice between the ancient myths of your local preacher and the obtuse mathematics of the physics professor, it’s not hard to guess what most folks will opt for.

I have reviewed a book by physics professor Chad Orzel called “How To Teach Relativity To Your Dog.” It’s a fun romp, and clever pedagogy, but I can’t imagine it making the best seller list, much less displacing “Heaven Is For Real.”

Meanwhile, I’m reading a meditation on infinity by physics professor Anthony Aguirre, in a collection of essays called “Future Science.” He discusses contemporary cosmological theories based on general relativity, and in particular the rehabilitation of the idea of an infinite and eternal universe, or, more precisely, that our universe might be just one of an infinity of infinite universes. He writes in conclusion: “What seems clear, however, is that infinity can no longer be safely ignored; beautifully constructed, empirically supported, self-consistent theories have brought infinity from idle curiosity to central player in contemporary cosmology. And if correct, the worldview these theories represent constitutes a perspective shift unlike any other: in comparison to the universe, we would be not just small but strictly zero. Well, I can’t imagine many folks racing to embrace that conclusion."

Oh, but wait. Aguirre adds one final sentence: “Yet here we are, contemplating – if not quite understanding – it all.”

"Huxley vs. Orwell"

"Huxley vs. Orwell"
by Neil Postman

“What Orwell feared were those who would ban books. What Huxley feared was that there would be no reason to ban a book, for there would be no one who wanted to read one...

Orwell feared those who would deprive us of information. Huxley feared those who would give us so much that we would be reduced to passivity and egoism...

Orwell feared that the truth would be concealed from us.
Huxley feared the truth would be drowned in a sea of irrelevance...

Orwell feared we would become a captive culture. Huxley feared we 
would become a trivial culture, preoccupied with some equivalent
 of the feelies, the orgy porgy, and the centrifugal bumblepuppy...

As Huxley remarked in 'Brave New World Revisited', the civil libertarians and the rationalists who are ever on the alert to oppose tyranny “failed to take into account man’s almost infinite appetite for distractions.” In '1984,' Huxley added, people are controlled by inflicting pain. In 'Brave New World,' they are controlled by inflicting pleasure...In short, Orwell feared that what we hate will ruin us. Huxley feared that what we love will ruin us."

Huxley was quite obviously correct...

"The Definition of Hell..."


 

The Poet: Rainer Maria Rilke, "I Want A Lot"

"I Want A Lot"

"You see, I want a lot.
Perhaps I want everything:
the darkness that comes with every infinite fall
and the shivering blaze of every step up.

So many live on and want nothing
and are raised to the rank of prince
by the slippery ease of their light judgments.
But what you love to see are faces
that so work and feel thirst...

You have not grown old, and it is not too late
to dive into your increasing depths
where life calmly gives out its own secret."

- Rainer Maria Rilke

The Daily "Near You?"

Berlin, Germany. Thanks for stopping by!

"Russian General Assassinated In Front Of His Home; Moscow Vows To Avenge Death Of Officer Who Blew The Whistle On U.S. Biolabs Operating In Ukraine

"Russian General Assassinated In Front Of His Home; Moscow Vows To 
Avenge Death Of Officer Who Blew The Whistle On U.S. Biolabs Operating In Ukraine"
Ukraine claims credit for targeted assassination of 
Lt. General Igor Kirillov but this bears all the hallmarks of CIA hit job.
by Leo Hohmann

"Reuters reports that a top Russian general accused by Ukraine of being responsible for the use of chemical weapons against Ukrainian troops was assassinated in Moscow by Ukraine's SBU intelligence service on Tuesday morning near his residence.

Lieutenant General Igor Kirillov, 54, (pictured above) was chief of Russia's Nuclear, Biological and Chemical Protection Troops. He was killed outside an apartment building along with his assistant when a bomb hidden in an electric scooter went off, according to Russia's top criminal Investigative Committee. The scooter containing an improvised explosive device was remotely detonated, killing both Kirillov and his aide as they stepped out of a building on Ryazansky Prospekt in Moscow, Russian media reported.

A source within the Ukrainian secret police, or SBU, told Reuters that it was behind the hit, stating “The liquidation of the chief of the radiation and chemical protection troops of the Russian Federation is the work of the SBU.” The U.K.-based Reuters news outlet conveniently failed to mention that the Ukrainian SBU operates as a virtual arm of the CIA and was unlikely to pull the trigger on such a high-profile assassination without the approval of the U.S. intelligence agency.

Sputnik International, a Russian media outlet, speculated that the real reason the Russian general was killed had nothing to do with unverified reports about the use of chemical weapons against Ukrainian troops. Sputnik says Kirillov was targeted because he was the one responsible for the discovery of more than a dozen biolabs operating in Ukraine under the sponsorship of the U.S. Department of Defense and U.S. Department of State. These biological experiments allegedly started under former President Barack Obama. According to Sputnik, the U.S. State Department has been directly involved in these biological programs, despite its repeated denials.

It is a fact that under Obama, U.S. biological warfare programs were advanced on foreign soil at the recommendation of the State Department because they were considered too risky to continue in the U.S. These experiments in bioweaponry typically are carried out under the auspices of developing “vaccines” against certain pathogens, when in fact they are “gain of function,” making the pathogens more deadly to humans and more easily spread among humans. The development of U.S. bioweapons allegedly has taken place at biolabs in the Middle East, Southeast Asia, Ukraine and Africa.

The U.S. government engages with third-party contractors as intermediaries to further disguise its involvement in this illegal and destructive bioweapons development. This is how Dr. Anthony Fauci could lie in the face of Senator Rand Paul a couple of years ago when he said the U.S. is absolutely not engaging in deadly gain of function research. He was afforded plausible deniability by the fact that his agency had outsourced the work to NGOs such as EcoHealth Alliance.

The bottom line is this: Both the U.S. and Russia are accusing each other of violating international norms on the experimentation, deployment and/or use of biological and/or chemical weapons. No doubt both countries are up to their ears in this nasty business. But at least you will have both sides presented here, unlike in the mainstream media, which will feed you only one side of the story, telling you only what the U.S. government wants you to know.

Reuters reports that Kirillov is the most senior Russian military officer to be assassinated inside Russia by Ukraine and his murder is likely to prompt the Russian authorities to review security protocols for the army's top brass and to find a way to avenge his killing.

Former president Dmitry Medvedev, now a top advisor to Putin on issues of national security, was cited by the state RIA news agency as saying that Ukraine's military and political leadership now faced imminent revenge for Kirillov's assassination. But Russia knows who is really in charge of the Kiev regime, so I would not rule out a further act of revenge against the United States or its assets around the world."

"Christmas Tree Hunting in a Luxury Moscow Shopping Mall"

Full screen recommended.
Travelling with Russell, 12/17/24
"Christmas Tree Hunting in a Luxury Moscow Shopping Mall"
"What is it like to spend Christmas in Russia? Join me on a tour of the GUM Shopping Center in Red Square, Russia. Every year, the store hosts a Christmas tree-decorating exhibition. 2025 is also the year of the snake. Can we find some decorations to match the holiday season?"
Comments here:

"How It Really Is"

 

"It is common to assume that human progress affects everyone - that even the dullest man, in these bright days, knows more than any man of, say, the Eighteenth Century, and is far more civilized. This assumption is quite erroneous. The great masses of men, even in this inspired republic, are precisely where the mob was at the dawn of history. They are ignorant, they are dishonest, they are cowardly, they are ignoble. They know little if anything that is worth knowing, and there is not the slightest sign of a natural desire among them to increase their knowledge."
- H. L. Mencken, 1929

"I'm Rightly Tired..."

“I'm rightly tired of the pain I hear and feel, boss. I'm tired of bein' on the road, lonely as a robin in the rain. Not never havin' no buddy to go on with or tell me where we's comin' from or goin' to or why. I'm tired of people bein' ugly to each other. It feels like pieces of glass in my head. I'm tired of all the times I've wanted to help and couldn't. I'm tired of bein' in the dark. Mostly it's the pain. There's too much. If I could end it, I would. But I can't.”
- Stephen King, "The Green Mile"

Dan, I Allegedly, "The Bad Bank List is Growing"

Full screen recommended.
Dan, I Allegedly, AM 12/17/24
"The Bad Bank List is Growing"

FDIC's secret list reveals 68 banks are now considered "problem banks" - with assets totaling $887 billion at risk. Learn what this means for your money and how to protect yourself in today's financial climate. #FDIC #BadBanks #BankRun #iallegedly In this crucial update, we break down the FDIC's latest report on troubled banks, including: 
• Why the FDIC keeps this list confidential.
• Understanding the CAMEL rating system for banks.
• How commercial real estate loans are impacting bank stability.
•What you can do to protect your deposits.
Comments here:

Adventures With Danno, "Strange Items At T.J. Maxx"

Full screen recommended.
Adventures With Danno, AM 12/17/24
"Strange Items At T.J. Maxx"
Comments here:

Canadian Prepper, "Breaking News, Emergency Nuclear Alert!"

Full screen recommended.
Canadian Prepper, 12/17/24
"Breaking News, Emergency Nuclear Alert!"
Comments here:

Bill Bonner, "Malice Aforethought"

Dr. Anthony Fauci testifies in front of Congress.
"Malice Aforethought"
The forces of history exert gravitational pulls. 
The Kennedy Assassination, 9/11, Covid, sometimes things happen 
that are so beneficial to ruling elites, it’s as if they caused them themselves.
by Bill Bonner

Baltimore, Maryland - "Professors of finance are a dime a dozen. Their theories are generally shallow and wrong... or kooky and silly. We weren’t sure which category Professor Richard J. Murphy of Sheffield, England, belonged in. We doubt that his core thesis on the coming crash is correct... but it is provocative.

At first glance, Murphy appears to be even more of a cynicalist than we are. He believes Donald Trump is offering dumb economic policies intentionally, trying to sink the US economy. Everybody knows restricting trade is bad policy. It prevents people from getting the best product at the best price, and it allows uncompetitive, but politically well-connected, domestic companies to stay in business long after they should have been liquidated.

Threatening foreign nations with sanctions if they use currencies other than the dollar is another bad idea. It’s like when you’re losing a Little League baseball game and threatening to take the bat home. Eventually the foreigners will find their own bat. And there’s the threat of deporting millions of workers. Add those deported workers to the $2 trillion Musk and Ramaswamy say they will cut from the Federal deficits and the higher prices caused by tariffs. All of them coming on stream just as the stock market reaches bubble highs...and you have set the stage for a catastrophic meltdown.

No matter. CNBC: "SoftBank and president-elect Trump announce $100 billion investment in US over four years Yes, the money is pouring in. Soon the jobs will be coming on-line. Or not. But Murphy believes the Trump Team’s real plan is to crash the economy: "Is the possibility that the world economy will crash soon a reasonable likelihood? Yes. And, the reason why comes down to two words, Donald Trump."

Huh? What’s the game here... ? Murphy explains. There have been two huge bailouts in the last ten years. In 2008... a huge bailout for Wall Street was organized by Ben Bernanke and Henry Paulson (on loan from Wall Street as US Treasury Secretary). Then again, in 2020 the Trump White House pulled off another one. In each case, the middle classes took the loss and the rich took the gains.

There it was. Estimates are all over the place... but the mortgage finance crisis of 2008, and then, the Covid Shutdown fiasco of 2020 reached upwards to $20 trillion of “total economic costs.” But for the asset owning elite, says Murphy, the subsequent bailouts more than made up for the losses. Murphy’s hypothesis is that the feds CAUSE the crises intentionally, and use them as cover for bailouts, that make the rich much richer.

And here's where it gets interesting. Even as cynical as we are, we doubt that they are so calculating. ‘Malice aforethought’ seems unlikely. But the forces of history exert their own gravitational pulls. The Reichstag Fire, Kennedy Assassination, 9/11, Covid – sometimes things happen that are so beneficial to ruling elites…it’s as if they caused them themselves.

There are two pieces to America’s financial world. There is the economic part - the Mainstreet economy where people work and save and invest, always trying to offer better products and services so as to earn more for themselves. And there is the financial part. The presumption is that Wall Street serves the economic part by allocating scarce resources to the projects that need them. But when the Fed pushes real interest rates down to ultra-low levels, it scrambles the signals. Resources are no longer scarce. So, the players stop trying to carefully allocate funds to the real economy. Instead, they borrow cheap money to gamble, to buy back their own shares, for mergers and acquisitions, and whatever else pays off. Cryptos, AI, one fad after another, the sky’s the limit.

Since 2008, the investing class got richer than ever, while the real economy dragged and staggered. What happened? The nation’s wealth shifted from the people in the real economy who earned it to the hedge fund managers, speculators and people who made their money, not by offering goods or services to others, but from the mispriced money itself.

The resource allocators on Wall Street didn’t allocate resources to manufacturing industries. Wages didn’t go up. Factories weren’t built. People weren’t trained to produce new output. And every mother in the country wanted her babies to grow up and be hedge fund managers, not factory managers. That’s where the money was!

Just taking the last four years, real incomes for real people in the real economy of jobs and products are flat or down. But during that same period the net worth of the top 1% rose by $16.5 trillion (these figures date from before the Trump Bump). Each household in that group is about $13 million richer than it was 4 years ago. As for the bottom 66 million households, they have gained only about $28,000 each in wealth.

Federal policies crashed the real economy... and then the feds pumped money into Wall Street. Taking the Dow as a measure, it traded at 28,000 in January of 2020. Now, it’s 44,000. The value of US stock, grosso modo, went from around $40 trillion in 2020 to nearly $60 trillion today. That $20 trillion roughly equals the amount taken out of the economy by the crises of 2008 and 2020."

Monday, December 16, 2024

"Regional Banks Are In Serious Danger Of Collapse, The Piper Will Get Paid"

Jeremiah Babe, 12/16/24
"Regional Banks Are In Serious Danger Of Collapse, 
The Piper Will Get Paid"
Comments here:

"All Three Pillars Holding Up the Economy Have Cracked"

"All Three Pillars Holding Up the
Economy Have Cracked"
by Charles Hugh Smith

"Karl Marx and Henry Ford both understood the key pillar of an industrial economy: the workforce has to earn enough to buy the output of the economy. If the workforce doesn't earn enough to have surplus earnings to spend on the enormous output of an industrial economy, then the producers cannot sell their goods / services at a profit, except to the few at the top as luxury goods--and that's not an industrial economy, it's a feudal economy of very limited scope.

Marx recognized that capitalism is a self-liquidating system as capital has the power to squeeze wages even as the output of an industrial economy steadily increases due to automation, technology, etc.

Henry Ford understood that if his own workforce couldn't afford to buy the cars rolling off the assembly line, then his ambition to sell a car to every household was an unreachable chimera. (There were other factors, of course; the work was so brutal and mind-numbing that Ford had to pay more just to keep workers from quitting.)

If we say the three pillars holding up the economy, the conventional list is: 1) consumer spending (i.e. aggregate demand); 2) productivity and 3) corporate profits. These are not actually pillars, they are outcomes of the core pillar, wage earners making enough to buy the economy's output.

As the statistics often cited here show, the purchasing power of wages has been declining for almost 50 years, since the mid-1970s. This means the workforce's surplus earnings have bought less and less of the economy's output.

There are three ways to fill the widening gap that's opened between what the workforce has to spend as surplus earnings and the vast output of the economy:

1. Government distributed money. The government distributes "free money" to the workforce via subsidies, tax cuts and credits, or direct cash disbursements.

2. Cheap abundant credit. The cost of credit is lowered to near-zero and credit is made available to virtually the entire workforce so workers can borrow money to buy goods and services they cannot afford to buy from surplus earnings. If auto loans are 1.9%, the interest is a trivial sum annually.

3. Asset bubbles. Boost the value of assets via monetary policies to generate unearned "wealth" that can be spent (by either borrowing against the newfound wealth or by selling assets). This expansion of "free money" also generates the "wealth effect," the feel-good high of feeling richer, which increases the confidence and desire to spend more money.

There are intrinsic, unbreachable limits to each of these solutions.

1. The government either "prints" or borrows the money it distributes to the workforce. Over time, low interest rates are unsustainable, despite claims to the contrary, and the interest paid on the state's vast borrowing consumes so much of the state's revenues that it starts limiting how much the government can spend. Once state spending stagnates or declines, this pillar breaks and the economy crumbles into recession/depression. In other words, depending on the government to fill the gap between wages and the economy's output is a self-liquidating system.

2. The expansion of credit leads to defaults and bankruptcies. Relying on the ceaseless expansion of credit based on the declining purchasing power of wages is also a self-liquidating system, as the number of marginal borrowers steadily increases, as does the volume of marginal loans issued by lenders. Marginal borrowers default, triggering losses that push lenders into bankruptcy. This is a self-reinforcing cycle, as the economy rolls over into recession as credit contracts. More workers lose their jobs and default, more loans become uncollectible, and so on.

3. Asset bubbles concentrate the newfound wealth in the top 10%, exacerbating wealth-income inequality and pushing those left behind to gamble in an increasingly speculative financial sector as the only available means of getting ahead. Speculation is also a self-liquidating system as risky bets eventually go bad and the losses trigger a self-reinforcing feedback of selling assets to raise cash which then pushes valuations lower, triggering more selling, and so on.

All three of these pillars propping up the economy are self-liquidating systems, and they're all buckling. Federal borrowing is pushing up against the limits posed by the interest payments on soaring debt. Credit costs are rising and cannot return to near-zero due to inflationary forces. All asset bubbles eventually pop, and the higher they ascend, the more devastating the collapse. Wages' share of the economy have been in structural decline since 1975. And no, we can't "grow our way out of debt" by inflating asset bubbles and subsidizing consumer spending with federal debt.

The pillars of consumer credit and federal borrowing are reaching intrinsic breaking points, and so everything is now depending on the asset bubbles in housing and stocks to keep inflating phantom wealth at rates high enough to support more borrowing and spending. The problem is all asset bubbles pop, despite claims that "this is a new era." That was widely held in March 2000, too, just before the dot-com bubble burst and the Nasdaq fell 80%. All three pillars propping up workforce spending are cracking. Plan accordingly."
o

Musical Interlude: 2002, "Wings II, Return To Freedom"

2002, "Wings II, Return To Freedom"

"A Look to the Heavens"

“Stars are sometimes born in the midst of chaos. About 3 million years ago in the nearby galaxy M33, a large cloud of gas spawned dense internal knots which gravitationally collapsed to form stars. NGC 604 was so large, however, it could form enough stars to make a globular cluster.
Many young stars from this cloud are visible in the above image from the Hubble Space Telescope, along with what is left of the initial gas cloud. Some stars were so massive they have already evolved and exploded in a supernova. The brightest stars that are left emit light so energetic that they create one of the largest clouds of ionized hydrogen gas known, comparable to the Tarantula Nebula in our Milky Way's close neighbor, the Large Magellanic Cloud.”

Chet Raymo, "Starlight"

"Starlight"
by Chet Raymo

"Poor Calvin is overwhelmed with the vastness of the cosmos and no small dose of existential angst. He is not the first, of course. Most famously the 17th-century French philosopher Blaise Pascal wailed his own despair: "I feel engulfed in the infinite immensity of spaces whereof I know nothing and which know nothing of me. I am terrified...The eternal silence of these infinite spaces alarms me."

And he didn't know the half of it. Not so long ago we imagined ourselves to be the be-all and end-all of creation, at the center of a cosmos made expressly for us and at the pinnacle of the material Great Chain of Being. Then it turned out that the Earth was not the center of the cosmos. Nor the Sun. Nor the Galaxy. The astronomers Sebastian von Hoerner and Carl Sagan raised this experience to the level of a principle - the Principle of Mediocrity - which can be stated something like this: The view from here is about the same as the view from anywhere else. Or to put it another way: Our star, our planet, the life on it, and even our own intelligence, are completely mediocre.

Moon rocks are just like Earth rocks. Photographs of the surface of Mars made by the landers and rovers could as well have been made in Nevada. Meteorites contain some of the same organic compounds that are the basis for terrestrial life. Gas clouds in the space between the stars are composed of precisely the same atoms and molecules that we find in our own backyard. The most distant galaxies betray in their spectra the presence of familiar elements.

And yet, and yet, for all we know, our brains are the most complex things in the universe. Are we then living, breathing refutations of the Principle of Mediocrity. I doubt it. For the time being, Calvin will just have to get used to living in the infinite abyss and eternal silence. He has Hobbes. We have each other. And science. And poetry. And love."

"We Don't Have A Clue..."

“We don’t have a clue what’s really going down, we just kid ourselves that we’re in control of our lives while a paper’s thickness away things that would drive us mad if we thought about them for too long play with us, and move us around from room to room, and put us away at night when they’re tired, or bored.”
- Neil Gaiman

The Daily "Near You?"

Whitewater, Wisconsin, USA. Thanks for stopping by!

"Homeowners Forced To Skip Meals Just To Pay Their Mortgage!"

Orlando Miner, 12/16/24
"Homeowners Forced To Skip Meals 
Just To Pay Their Mortgage!"
Comments here:
o

"Look At These Egg Prices! 37% Of Americans Struggle To "Pay Their Most Basic Bills As Food Prices Accelerate Again"

"Look At These Egg Prices! 37% Of Americans Struggle To 
"Pay Their Most Basic Bills As Food Prices Accelerate Again"
by Michael Snyder

"When one of my readers sent me a photo of egg prices at a store in western Washington state, I could hardly believe what I was seeing. I clearly remember when I could purchase a carton of quality eggs at the grocery store for just 99 cents, but thanks to inflation and a bird flu crisis that never seems to end, those days are long gone. Now it is common to pay five, six, seven or even eight dollars for a carton of eggs. In fact, it probably won’t be too long before we crack the ten dollar barrier. In the old days, eggs were considered to be a very inexpensive way to feed your family, but now eggs prices have gone completely insane.

Unfortunately, it isn’t just egg prices that are spiking. According to CNN, we just witnessed the largest monthly jump in grocery prices in almost two years…"In November, egg prices shot up by 8.2% nationwide, logging one of the highest monthly spikes in the past two decades, according to Consumer Price Index data released last week. And it’s not just eggs - shoppers have seen jumps in beef, coffee and non-alcoholic beverages, driving up overall grocery prices to their largest monthly gain since January 2023." And more increases appear to be coming down the pike for the pulped-paper-packed protein: Wholesale prices for chicken eggs soared by nearly 55% last month, and wholesale food prices rose by 3.1% (their highest monthly increase in two years).

Our leaders in Washington promised us that food inflation was under control. They lied. I realize that this is very bad news. I have heard from so many of you that are deeply struggling at this moment. Now it appears that food prices are going to go substantially higher in 2025. All of us are just going to have to adapt to this new environment somehow.

If you are barely scraping by from month to month, I want you to understand that you are definitely not alone. In fact, the U.S. Census Bureau is telling us that 37 percent of Americans are having trouble even paying their most basic bills…"The Census Bureau reports that 37% of Americans are struggling to pay routine bills. Add in the cost of Christmas gifts and other holiday expenses and it can feel overwhelming to keep up with the Clauses. The National Retail Federation predicts an increase in holiday spending this year, but the rise is more indicative of the higher cost of goods than anything else. We aren’t buying more; it’s just what we are buying costs more than before."

That is more than a third of the country. It is difficult for people to hear that they aren’t going to be able to live the way that they previously did. In an attempt to keep their lifestyles the same, many Americans are racking up credit card debt like never before…A new study of Americans credit card debt finds the average household credit card balance as of the third quarter of 2024, was around $10,757 after adjusting for inflation.

That according to the personal-finance website WalletHub which Friday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024. Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms. Sadly, we have now reached a point where debt saturation is becoming a major problem and delinquencies are rising. Consumers simply cannot spend money like they once did, and the retail industry is really struggling as a result.

So far this year, retailers have announced the closing of more than 7,000 stores. That represents an increase of 69 percent from last year…"Retail store closures in the United States rose sharply in 2024, with over 7,100 closures announced through the end of November, according to data from the research firm CoreSight. This number marks a 69 percent increase from the previous year under the Biden-Harris administration, which has been plagued by inflation.

The spike in closures is tied to a wave of retail bankruptcies, with 45 retailers filing this year compared to 25 in 2023. Economic challenges, including persistent inflation, have led consumers to cut back on discretionary spending."

As I discussed last week, evidence that the economy is really slowing down is all around us. I am sure that you can see this where you live, and with each passing day we get even more troubling news. For example, it is being reported that Macy’s is planning to close dozens of stores by the end of this calendar year…"Macy’s is ramping up store closures this year as it struggles to revive its faltering business. In February, the embattled retailer announced plans to shut 150 underperforming stores within three years – including 55 closures by the end of 2024. But the company now expects to close 65 locations by the end of the year. Bosses said they will remain open through the holidays to let regular customers shop but then shutter for good before the end of December."

And in a year when so many restaurant chains have already bit the dust, we now have another one to add to the list…"Arizona’s iconic frozen drink and sub chain Eegee’s has filed for Chapter 11 bankruptcy, making it the latest casualty in a brutal year for fast-food restaurants. The announcement came with the closure of five locations across Tucson and Phoenix, leaving die-hard fans heartbroken. The December 6 filing in Phoenix federal court gives the embattled chain – owned by private equity firm 39 North Capital – a chance to reorganize its finances."

Four years of “Bidenomics” has taken an enormous toll on our nation. We have built up a tremendous amount of economic momentum in the wrong direction, and the very foolish policies of our leaders are taking us exactly where I warned they would take us. Many are hoping that things can be turned around when the new administration takes over. But considering how rapidly conditions are deteriorating both here and around the world, it would literally be a major miracle to pull us out of this mess before a horrifying global crisis erupts. So let us hope for the best, but let us also continue to prepare for the worst."

Greg Hunter, "Trump Faces Quagmire of Economic Math"

"Trump Faces Quagmire of Economic Math"
by Greg Hunter’s USAWatchdog.com

"Financial writer and precious metals broker Bill Holter has been warning of a slowing economy since the September Fed .5% rate cut. If the economy was so strong, why cut rates? Joe Biden is saying his Administration is leaving office with the “strongest economy in modern history.” A recent FOX News poll says a big majority of voters think just the opposite about the economy with a whopping “77%” giving Biden “negative ratings” on the economy. Huge unpayable debt and insolvency problems keep stacking up that are pointing to the much talked about “economic reset.” 

 The latest big warning sign comes from the Bank of England. Holter explains, “For the Bank of England to say starting January 1 of 2025 that whenever they bail out an institution, they are not going to tell the public that that institution was bailed out. That tells me that 2025 is the year of the ‘reset.’ Why would they say starting January 1st they are not going to tell you who they are bailing out? Wait a minute. Why would you need to bail anybody out? Markets are at all-time highs. You are telling us everything is great. The financial markets are great. The economy is great. Apparently, that’s bullshit, it’s not so great, and you feel the need to start bailing out institutions starting in 2025.”

When it comes to the Trump Administration cutting government spending with the newly created Department of Government Efficiency (DOGE), Holter sees a big problem. Holter says, “If money doesn’t get borrowed and it doesn’t get spent, it doesn’t get into the economy. The spending part is the important part. Last year, the economy or GDP was roughly $29 trillion. Cutting $2 trillion is about 7% of $29 trillion. If you take that $2 trillion out, that is 7% of GDP that doesn’t exist. So, instead of 2% or 3% growth, subtract 7% from that and you have -4% or -5% growth. That’s what we would have had since 2008. If we were not running deficits, we would have been running a negative GDP economy.”

On the flipside, Holter contends that the debt can’t grow forever either because interest on the debt is more than $1 trillion a year and exploding higher every year. Holter says, “Trump is not going to be able to come in and save the system because it’s just math. He can come in and make whatever happens follow the rule of law instead of the rule of make it up as you go. Trump is in a quagmire of mathematics, and the mathematics in this country is broke. The whole financial system is a Ponzi Scheme that depends on deficit spending and increases in money supply or monetization.” By the way, outgoing Treasury Secretary Janet Yellen says she is “sorry” (NOT sorry) for creating $15 trillion in new debt during the Biden Administration.

Holter says the so-called economic reset will be in two stages. Stage one will be banks will be bailed out, and then people will be bailed-in and lose their money in the bank. Holter points out all the laws have been changed to make depositors unsecured creditors of the lowest level. Same for people with stocks as the so-called great taking will take all shares out of your accounts. The second stage will be the world will not accept digital dollars or any other crypto for payment for real things. Holter says, “The world is going to demand real payment for real goods. That’s when the price of everything resets.”

Gold, silver and other tangible assets, according to Holter, will reset higher, and most other things will reset lower - much lower. Holter says, “This will be true price discovery.” There is much more in the 56-minute interview.

Join Greg Hunter on Rumble as he goes One-on-One with
 financial writer and precious metals expert Bill Holter:

"How It Really Is"

 

" Judge Napolitano - Judging Freedom, 12/16/24"

Judge Napolitano - Judging Freedom, 12/16/24
"Alastair Crooke: A War Without Limits"
Comments here:
o
Judge Napolitano - Judging Freedom, 12/16/24
"Pepe Escobar: The Syrian Tragedy"
Comments here:
o
Judge Napolitano - Judging Freedom, 12/16/24
"COL. Douglas Macgregor:
 First Syria, Is Egypt The Next To Fall?"
Comments here:

Adventures With Danno, "I Was In Complete Shock At Meijer"

Full screen recommended.
Adventures With Danno, AM 12/16/24
"I Was In Complete Shock At Meijer"
Comments here:

Dan, I Allegedly, "What’s Up With the Drones?"

Full screen recommended.
Dan, I Allegedly, 12/16/24
"What’s Up With the Drones?"
"Unbelievable footage of car-sized drones terrorizing neighborhoods across America! Why is the government keeping us in the dark? From New Jersey to California, these massive UFOs are buzzing homes, evading detection, and sparking panic. But wait, it gets worse! Our clueless leaders claim "no threat" while citizens take matters into their own hands. You won't believe what one man did when a drone invaded his property! Is this a foreign invasion? Secret military tech? Or something even more sinister? The truth will shock you!"
Comments here: