Business & Economics

The Coming Recession: Is it the Big One?

Posted on by TCA

While many conservatives like myself have been screaming about the federal government’s growth, spending and deficits, the outcome associated with these problems haven’t necessarily manifested themselves in a significant way. Well, that might all be changing.

As we look forward, we see inflation hitting heights not seen since the 1970s/1980s, and we see some of the world pushing back on the US Dollar hegemony. As the demand for dollars around the world slow with no contraction of the supply of dollars, you can expect the USD’s value to decline. This makes everything more expensive given we no longer manufacture things in the U.S. With the prices of goods costing more and more, you would expect demand to go down. When the demand for your currency goes down, the value of your currency goes down. Reduced demand for goods will lead to layoffs (i.e. higher unemployment). All of this means stagflation.

All of this pricing pressure will likely push the Fed to increase rates in order to stimulate demand for USD and stabilize prices. However, this will mean less and less is available for the bailouts and benefits that governments spread during such times which means a more disgruntled population and possibility of civil unrest.

Once this starts, I think it will unfold pretty quickly. The government required shutdowns due to COVID have us in a very precarious position. Will it all come crashing down? Don’t know. However, you need to prepare for some hard times ahead if I’m reading the tea leaves correctly.

The Coming Resurgence of Self-Reliance

Posted on by TCA

With the world going to hell as the U.S. and Russia fight their proxy war in Ukraine, one thing is becoming more and more apparent: governments have been selling their citizens down the river for personal gain for decades. We have learned that Ukraine has been a pool of corruption from which the elites have drawn from to enrich themselves while selling the rest of us down the river. Democrats and Republicans both receive money from these corrupt countries so the foreigners can access the trillions spent by the U.S. government.

One thing has happened though: they are no longer hiding their desires and intentions. They have amassed enough wealth to ride out the inflationary cycle while throwing pittance at their citizens so they can get by. More and more you can see them at conferences and on hot mikes taking about the coming reset in which they will control everything we do.

We may be witness the awakening of the citizenry that those in government only look after themselves. upon their awakening, you can expect major changes in how people vote and use their money. As the great awakening happens, you will see the takers from both parties in the U.S. attempt to regain control and assert once again they are for the little guy all the while continuing the destructive policies that have hurt the little guy.

With the understanding and realization that ”Santa Claus”, aka the government, doesn’t have their best interest at heart, they will discover the old U.S. value that underpins the constitutional framework: self-reliance. With that great discovery, they will be freed from today’s slave owners and simultaneously destroy the chains of today, i.e. government programs.

They Need a War

Posted on by TCA

Is it really surprising that the world’s largest economies are on the brink of war?

Some might say yes, but I think history shows us that the ”elites” and political class use wars as a means to an end every time their power, prestige and wealth are at risk.

Today, the elites, globalist and Democrats (ahh, but I repeat myself) power has come under attack. They over played their hand during their COVID crisis and tried to remove the guardrails against fascism permanently establishing them as leaders of the new world order. From locking down the free people of the world to forcing them to wear masks and get unproven vaccines, these individuals used the tactics of the communist to force compliance to their ways. They brought forward CRT, BLM, etc., that they have filled the minds of our children in kindergarten through university for the last thirty years with this rot that reduces critical thinking skills, promotes censorship, and segregation.

You have seen mass protests against this accumulation of power between Big Tech, government and the press.The most recent example was the freedom convoy in Canada and Trudeau’s response. Even the supporters of this alliance were shocked as it really demonstrated what was occurring and shined a light on it for many to see. This has lead to pushback and a threatening of their power. So, what is their next step? War!

History shows us that politicians in trouble benefit from going to war as it brings together the groups segregated by their policies together, albeit for a brief period.

Who is/are they?

In the U.S., they are both Democrats and Republicans. Liberals and conservatives. Most of them come from the Ivy league and have become accustomed to believing they are they smartest and can do no wrong. They are the leaders of big business as well as people at all levels of government. They have weaponized our government and legal system to stem any pushback. They encourage violence and the destruction of anyone or institution attempting to thwart their power.

With their power at risk, what do they do? They go to war.

How do you combat or prepare for this?

As Gerald Celente warns in a piece on Zero Hedge:

“I am saying to everyone listening, we are at the crucial point where one day, they are going to say a bomb, hacking or whatever, and to save your lives and to save your money, we are closing down the banking system.  You won’t be able to get your money out, and maybe when you do, they will devalue it.  They did it before and they will do it again.  

This time, it will be much worse.  My plan centers around the three G’s:  guns, gold and a getaway plan.”

“Climate Change is About Control, Stupid – Not The Environment” 

Posted on by TCA

William L. Kovacs has the above titled post at the Watts Up With That blog that hits the nail on the head. You can see the same thing with the COVID-19 pandemic. Read the whole thing.

From the comments:

I posit that pretty much all we see in the world of ‘politics’ doesn’t have anything to do with actual politics, but everything to do with almost pure differences between two personality types: those who are self-confident and are happy to “live and let live,” contrasted with those who have no self esteem and who feel compelled to validate their miserable existence in their own tiny minds by exerting absolute control over everyone else, on every topic under the sun. The comedian John Cleese quoted psychiatrist Robert Skinner about that, who said “if people can’t control their own emotions, then they have to start trying to control other people’s behavior.” We see it everywhere from them wanting to control our voting behavior on down to what kind of light bulbs we use.

Exactly!

Now, This is a Problem

Posted on by TCA

The most surprising thing this week to me has been the legacy media ignoring the report that Saudi Arabia is talking to China about accepting the yuan for payments of oil. The signal this sends is not good. You might be wondering why this is such a big deal.

Well, the U.S. has printing a significant amount of USD over the past 15 years. This isn’t a Democrat or Republican thing. Both parties have signed on to the large deficits we have incurred since 2008. COVID only exacerbated the issue given the multiple stimulus bills passed by congress. This has led to an expansion of the M2 money supply (something you never hear about).

You might ask why pricing oil in yuan is such a big deal. Well, most oil trades in USD. This creates a significant demand for USD given the volume of trading the happens everyday. This demand for USD allows us to import many things from consumer goods to raw materials. Without this demand, the value of the USD will fall increasing the inflation pressures we feel. The result may be

Over the past 30 years, the management philosophy has been to offshore the labor intensive work. Between the environmentalist pushing businesses to go green and move away from fossil fuels as well as Americans not wanting to do the hard/dirty work, we have become consumers of materials and goods mine, manufactured, etc. from second and third world countries. The COVID pandemic showed what folly this was as global supply chains cracked and U.S. manufacturers had to delay production, reduce staff and take other actions to deal with these delays. Now, with the war in Ukraine hitting us just as supply chains were beginning to heal, you now face accelerating inflation, additional shortages and further delays in manufacturing. Couple this with a tight labor force and accelerating inflation, and you have the making of the stagflation era of the ‘70s returning.

Now, enter the conversation about the yuan replacing the USD for some oil sales. Should that occur and the USD is no longer the sole reserve currency, what would the impact be? I believe you would have a reduction in the value of the USD pushing the price of the goods we import up. To combat this, the reaction would likely be in increase in interest rates to attract investments in USD. This would put pressure on the federal spending available for social programs as a larger percentage of the budget would have to go to interest. The higher interest rates required to offset the increase in M2 money supply we have seen over the past 15 years would certainly drive us into a recession. Without the flexibility to ”stimulate the economy” with “free money” due to the increased rates and a reduction in taxes associated with the recession, the government will likely have to cut domestic spending programs. Given today’s environment, this will lead to civil unrest like never seen in the U.S.

Mitt Calls Tulsi a Liar

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Probably the most feckless of all Republicans calls Tulsi Gabbard a liar due to this tweet:

To this, Mittens responded:

The real issue I have with Mitt’s response is that he should know whether this is true or not and come forth with the receipts (i.e. evidence). IF congress actually prepared a budget as required rather than this drivel called reconciliation, he would know. It would be laid out in an appropriation. However, being part of the in crowd is what Mitt really concerns himself with.

He is an example of why Trump won in 2018. It wasn’t that people liked Trump, but instead, that Trump actually pushed back against the onslaught of the government media complex. If you are in your 40s or 50s, you will recall that Republicans use to run on smaller government/reduced spending platforms. But, that is no more with most actually supporting a larger, more intrusive government…as long as they run it and pick the winners and losers.

Mitt, please do us all a favor, be true to yourself and convert to a Democrat.

The Coming Food Crisis the Media Isn’t Warning You About

Posted on by TCA

Some have heard about the impact of the Russian invasion of Ukraine, the subsequent enactment of sanctions against Russia, the Russian’s cessation of agricultural exports as a reaction to the sanctions, and what that means for the world’s food supplies. However, the media is not warning people of the potential problem this creates.

Zero Hedge has a concise piece that highlights what that means to the globe. From the piece:

The curtailment of agricultural exports from Russia and Ukraine will have dramatic knock-on effects on global food supplies. Both countries are known as the ‘breadbasket of the world’ and are responsible for a quarter of the international wheat trade, about a fifth of corn, and 12% of all calories traded globally. Another major problem is access to fertilizers, as Russia has banned exports of the nutrients. 

A blogger’s tweet quoted in the piece captures the concerns many of us have:

If our concerns are correct, this will be a long couple of years, and inflation will be the least of our worries.

Digital Dollar. Good or Bad?

Posted on by TCA

The much touted Biden order on crypto also has the government thinking about issuing a digital dollar through the Fed. Is that a good idea or bad idea?

Let’s take a look at the pros.

First, it would be much easier to create a new dollar virtually rather than printing it and may be more environmentally friendly, one of the hot button topics today. Secondly, with an app the government could easily access people who do not have a bank account and put their benefit payment into their digital wallet allowing for easier implementation of policy. Third, it removes the default risk of intermediary banks given the interaction is with the central bank directly. Finally, having a CBDC (central bank digital currency) will make it more cost effective to transfer money, especially internationally.

While that sounds good, there are a number of draw backs. First, and foremost, are privacy concerns. With the central bank in charge, they (and your government) would have complete control over who can access the blockchain. Say you’re someone in Canada supporting the truckers, the central bank could simply not allow you to access the blockchain to make a donation. The second issue relates to the devaluation of the CBDC. There is no difference other than form between the fiat currency notes and the CBDC. The central bank could simply charge negative interest rates on all of the deposits into the central bank reducing the value of your holdings everyday. This inflation helps the issuing government continuing its disastrous spending levels of today. The third issue would be the destruction of the banking industry. If the central banks are working directly with consumers, I can’t see a rationale reason for an intermediary other than raising the cost of a transaction. The disruption of the financial services industry at the hands of its regulators is the reason the market needs to make this decision and not the government and the hacks at its central bank.

All in all, a CBDC is not the same as a cryptocurrency but is a fiat currency in a digital/controlled world. With the way the government’s of the world have acted during COVID and the Canadian freedom protest, privacy should be the upmost concern. The continued war on cash should show you want they really want: control over what you buy and their ability to use inflation to avoid having to make tough choices.

March 10, 2022

Posted on by TCA

Key stories you might have missed.

Ted Cruz destroys Biden’s lame attempt to blame Russia for the rising gas prices in the U.S.

Voter fraud in the 2020 election cycle. John Solomon’s site Just the News has a roundup.

Inflation continues accelerating.

Biolabs in Ukriane. We deserve the truth about what our government is doing around the world. Glenn Greenwald’s Substack article is a nice summary of what we know.