While there are many things to write about, I believe that the most important story that most are not talking about is the move away from fiat money to money backed by physical goods. Those producing those goods are the ones that are pushing this agenda.
It is becoming increasingly obvious that those conjuring up cash out of nowhere and with virtually no cost (or creation of anything) have been manipulating the prices of goods for their own benefit for a LONG time. This has led to underinvestment and a lack of investment in producing real goods for a long time now. The fruits of this are beginning to show up in a big way.
While many “in charge” were of the opinion that they could just “print up” cash and get virtually whatever they wanted the reality of “something for nothing” is being exposed for what it is- fraud on a massive scale. And who suffers? Those who can least afford it. The middle class and the poor.
Across Europe people are suffering with high energy prices that are making high food prices surge even higher. Keep in mind we are in the summer and the critical moment is likely to be when the heating season begins in earnest in a few months.
In the meantime, if the threat of freezing this winter wasn’t enough there appears to be a more imminent threat- drought. The drought in Europe is leading not only to a likely reduction in food production but, more immediately, it is so bad that hydroelectricity production is being reduced and cargo traffic is being impacted on Europe’s rivers because they are so low that barges can only pass if they are at 40% of capacity. This is leading to even more stress on industry and electricity generation.
According to Rystad Energy via the BBC, hydro electricity generated in Europe between January to July in 2022 was MINUS 20% of what was produced in 2021. Nuclear is also down 12% (great timing) due to many reasons but the top reasons being maintenance that was overdue on many plants in France that were put off because of the pandemic response by the government and heat levels that were so high (record heat) that the reactors could not be cooled effectively.
The takeaway from this to me is that the European Central Bank can “print” all they want but they can’t “print up” anything but more debt. It creates no Food, fuel, electricity, etc. While those at the top count their “profits” those in the real world are paying the price. It appears that the price is rising day by day and that many- particularly at the bottom of the socioeconomic ladder are in extreme danger at this time.
The sad part is that we are seeing the same thing happening here in the USA as there are major drought conditions in many parts of the country but the worst conditions are likely in the southwest where water restrictions are being imposed and water levels at the Hoover Dam and Colorado river are at record lows and are still falling. Many are warning about the electricity being generated at the Hoover Dam being impacted very shortly if the levels continue to fall.
To all of those who think “it can’t happen here” keep these numbers in mind.
- Food inflation is at 13.1% (admitted) likely far higher. Rising at the fastest pace in 43 years. SNAP program increased payouts 25% and last month 25 MILLION Americans admitted that they didn’t have enough to eat in the last 7 days (many of these people are WORKING). (Urban Institute). Food banks are being squeezed in two ways- RISING PRICES and SOARING demand for their help.
- According to our “experts” in the media the economy is booming even though all of the economic numbers come in as crashing (always a surprise!)
- Many utility companies are raising their rates- some by a lot because of the rising costs of fossil fuels and a lack of alternatives.
- We have a government that expects us to believe that conjuring up another $739 BILLION on top of our already unpayable debts will magically reduce inflation when the very act of conjuring up the cash is INFLATIONARY! Of course, the 87,000 Armed IRS agents (trained to use deadly force according to their job post) will likely cause some deflation as the middle class will get hosed again with higher taxes and, as it appears- LITERALLY at the point of a gun. This is, as I have written MANY times in the past-Banana Republic antics.
China is also experiencing higher than normal temperatures and a drought which is causing their hydroelectric energy production to fall also. It has led to a mandatory shutdown of factories in Chonquing and Sichuan Provinces to preserve energy. Major companies like Toyota have been shut down until at least August 24th. by the government. (Nikkei Asia)
With their economy showing signs of severe weakness will their “leaders” let up on the ridiculous shutdowns and mandates? Will they invade Taiwan to distract their population? I believe that IF they are going to make a move it will likely be in September. This is not a guess but it is from an article I read that suggests that this is the optimal time weather-wise to carry out such a maneuver.
It still amazes me that most people are worried about how much “money” they have and still look at it as though it is “safe” when it is hemorrhaging purchasing power at increasing speed. It is even more amazing when you consider that real inflation is 15-20% and the banks still pay 1/10th of 1% on money markets and deposits.
In Zimbabwe, where they had one of the most devastating hyperinflations in world history, they had inflation that caused massive destruction. They even “printed” a 50 BILLION Zimbabwe dollar note. By the way, at the time it would purchase 2 loaves of bread. BARGAIN!
Their answer, as I believe the world’s answer will one day be- Gold.
The Zimbabwe central bank started producing and selling 1-oz. gold coins on July 25, 2022.
When the sales started the Central Bank Head Mangudya said:
“We are now providing that store of value to ensure that people do not run to the parallel market in search for foreign currency to store value. And there is no other better product that can be used to store value other than gold. We know what you have been going through in terms of the fear factor of losing value and therefore we are providing this gold coin”.
The issuance was so successful that they are going to issue coins in other denominations.
In Venezuela it took 3 Million Bolivars for a cup of coffee a couple of years ago while an ounce of silver could feed a family of 4 for a month (if anything could be found).
This is what happens when “money” dies. It starts off as inflation and then- WHAM- all at once it hits where it is so bad that it can’t be hidden anymore and everyone tries to get real stuff before it is FAR more expensive tomorrow leading to even higher prices going forward.
I believe that the USA and the developed world are well on their way to destroying their currencies- likely on purpose to introduce the CBDC (Central Bank Digital Currency).
To sum this up we have money “printers” running amok, we have producers producing FAR less because of rising prices, regulations, shutdowns, etc., we have man-made disasters like nitrogen mandates, streaming precious water into the Pacific to save a few fish and a lack of faith in the “leadership” not only here in the US but across the globe.
I believe the writing is on the wall. Our leadership is SEVERELY lacking and I believe we are very near our time of having to answer for our actions over the last 70 years.
It won’t matter how many dollars you have if it costs a million dollars for a loaf of bread. To all who think that is ridiculous- I am sure in Weimar Germany most thought that was preposterous in 1920 but by 1923 that was the reality- and worse.
I believe IT CAN- and likely will HAPPEN HERE.
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