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Eco/monetary news n°31> Bank Of England chief economist claims US inflation is likely to spread to the UK *********************** After the US inflation reached the "Yarrr you're a pirate - Steal 5% of the public's wealth each year" achievement, the BOE chief economist said their own inflation was likely to catch up. He mentionned the rising energy costs that were already putting upward pressure on prices and that they were bottlenecks in the labour supply. Some people have claimed that companies simply had to pay their workers a decent wage. Fast food companies have started to fire everyone and use robots instead, other companies raised wages and are raising their prices. To be fair low wage workers don't really understand economics so they will be satisfied by the wage rises - "Hurrah" - and it will take them a few years to figure out they didn't really gain anything, at which point they will demand higher wages and government spending, be happy for a few years and then... Hey if they were able to understand this then they'll be able to do more than flip burgers, and they would not even ask about all of this, we wouldn't have the problem entirely. Checkmate. To be even more fair even engineers, doctors, and deputies & senators fail to grasp these concepts. Inflation and economic concepts are not even that complex. So how can we teach the public about it? Worry not the FED has you covered! On June 21 the FED of Cleveland has published 3 lego videos to explain the basics of inflation and broadcast propaganda - errr I mean explain how the FED does a wonderful job at making prices stable and building a fair world for everyone (try not to laugh challenge). > The EU got the US to join their TTC effort (new TAFTA) with little attention *********************** Sure corporate profits went up more than wages. But if you add the ballooning government spending to wages the sum is equal or greater to corporate profits. Before people earn a wage and buy things with their hard earned money. Today they buy half with their money, get the other half from the government. Simple. Which brings me to the comeback of the TAFTA, now disguised as the unadvertised TTC (Trade and Technology Council). Some small media are covering it, there is an official press release (they are obligated to publish everything they do): ec.europa.eu The TTC is a trade agreement between the EU & US like the TAFTA that was strongly opposed, especially by farmers and other self-employed people - do not expect much from tamed wageslaves -, it also gives censorship power to governments and big tech. The TTC is for now under the radar, and there has not been public backlash yet. I do not know much about it, I just know it sounds like more taxes and more government power and control, and people disliked it, and their texts contain words like "democratic", "promoting", "fair" and "climate" way too much for this to not be at least suspicious. > The S&P panic might be over and retail positions are strongly short once again *********************** The S&P 500 once again made a new high, and rallied above it this friday, and closed above the previous ATH. Major Forex broker publishing their retail client positions show that short positions are going straight up, and the ratio is around 4 to 1 short:long. The explanation given for the new high is the market being satisfied with the FED seductive words "Everything is going as planned", "It's not that bad", "Don't worry it's only temporary", "Ignore the FUD it's just noise". Like asking Elon Musk if I should buy Tesla shares or go short. As usual with a planned economy (socialism), "everything is going great!", and the means of production are in the hands of a few, such as Blackrock. So as long as they want prices to go up, prices will go up. You can whine about it, or you can profit from it. Very recently Vladimir Putin, and some top Russian/Soviet spies have compared the US planned economy to their own back then, and the whole situation to the Soviet situation just before the end. So avoid this ridiculous "passive investing" nonsense, and be prepared to run for the exits! I think Gorbachev talked of this too, or is it just my imagination? Probably he mentionned it between 2 sentences while whining about "we could have saved the Soviet Union if only...". Not that it would be relevant... Ramblings of a delusional senile old man... > USDMXN: For the first time since 2018 the Mexican central bank raises rates *********************** The pesos is undervalued relative to the USD by what? 50%? Good guys. Altruists. Seems like altruism has its limits, as Mehico, number 2 sucker to America after China (but really number 3 behind the European Union), seems to want to strengthen their currency a bit. Inflation has skyrocketted, doubling in 2 months to 6% annualized. Their target is 3%. Last time inflation was this high was in 2017 just before the last rate increase. They only brought the rate from 4% to 4.25%. The US suck in all the capital, all the workers, all the entrepreneurs, all the investments. Not much longer by the looks of it. Kill America to Build Back Better. Hey! That may not be what they had in mind but that's going to be one successful operation. It was not fair that this "superpower" (pbui) was sucking everything in, and exporting its inflation. The downtrend is very hard to start (bull markets are born in pessimism), but at some point it accelerates very fast, simple crowd science. Look at crowds that dance. First a few "weirdos" dance all by themselves, for a while. Then a few people join. And quickly it accelerates and trends. And before you know it the people not dancing are the weird ones, the "anti-social", "what's wrong with you? you're in a bad mood?" lmao 5 minutes ago you were saying the ones dancing were ankward autists on drugs. Just a matter of time. As always, it's all about simple patience. Well not too much patience the death of the USD might have already started. Even if US inflation reduces like Japan did in the 90s atfer a quick spike up, there is no way the north americans will continue to suck the whole world wealth, and countries like Mexico will get their fair share. > 10 days after ending the mask mandate highly praised 💉 Israel brings it back *********************** 🙂 Wow, who would have thought? "Take the damn jab and life will go back to normal". They love this phrase "A return to normalcy". "HURRAY! Back to normal!". "Last time they said". Cracks me up every time. What they all fail to grasp is: This is not a video game. There is no magical one size fits all solution that will just beat the boss and move to the next level. This is not a Zombie movie where the ending is Morgan Freeman narrating "And so they found THE CURE and the zombie outbreak (magically) ended and everything went back to normal we rebuilt everyone was happy the end". Children... I am calling it now: - The number of deaths in the US and EU will double, bringing the "over average" peak from ~10% to ~100%. They'll use it for fearmongering. - The restrictions will continue (for a virus or the climate). They've been fascinated by China totalitarian methods and masks for a while. - EU economies will continue their decline, perhaps it will accelerate (how can Greece decline even more?) - Coronaviruses, which are much older than humans, are not going to go away (I have no polite word for the big brains that think so) - There will be other infectious diseases too obviously > Bitcoin hoovering around year lows and there is less than 1 month till TSLA 10-Q *********************** Bitcoin is still around year lows, and by extension at best at the price Elon Musk bought when he decided to gamble his investors (and taxpayers) money. China, just like september 2017, is cracking down on crypto. Bear trap perhaps. Bull whales can still go down before a big rally. Hey where did the Buffalo factory money go? In gambling Bitcoin? So this is where it went? Cathy Wood, a dumb fraud victim famous for getting lucky with Tesla and mistaking luck for talent, has - big surprise - gambled on Bitcoin 🙂 She bought 1 million share of the Grayscale Bitcoin Trust. I didn't really look into it but it has a 30% premium, so it's literally made up of idiots throwing money at anyone that wants to do arbitrage but my gut tells me this is too easy so I'm guessing one simply cannot cash out of this ponzi scheme. I did not do my research all I know is there is a big premium. Ah that's what is great about dumbasses that think they are geniuses. Jérôme Kerviel. Nick Leeson. "Legends" on the internet. 16 years old prodigies. They never learn their lesson without getting hurt. So the really lucky ones are those that lose at the start. All these gamblers and fraud victims get false positive feedback and double up on their risky casino bets. And then get hurt. Badly. "Normies" will brush off smart people and believe scammers, trolls and gamblers. Seems unfair that stupid trolls get lucky. But what's cool is we know for a fact that sooner or later they will get hurt. All it takes is patience. They all end up burning themselves. I hope Elon Musk goes to jail where he belongs. And Cathie Wood gets ridiculed as it should be. Might be soon, might be later. But it will happen.
by MrRenev
Ready for the great reset of wealth?Here is the distribution of the 50 largest public companies: USA 34/50 CHN  7/50 EUR  5/50 OTH  4/50 This seems normal? The percentage of american companies at the top is close to what the percentage of japanese companies at the top was in the 1980s. Random people, which are mindless NPCS, somehow acting like it's normal. And they will act like hyperinflation is normal when it happens. The way I see it there are 2 directions we are heading: Stock crash and great depression. The best outcome. High inflation and wealth + debt great reset. The socialized loss outcome they won't recover from in the 21st century. Seing spending this is where the US is going. Hyperinflation à la Zimbabwe would be obvious and have negative consequences for the crooks running the show. No, as always it will be a boiling frog method, with lots and lots of arguing coming from the crooks responsible and their supporters. And besides if inflation gets too bad, all business are not even able to operate, they are completely frozen. I can already predict their arguments "Back in the 70s-80s inflation was at 15% and we did great", "inflation is the result of effective policies creating growth" (while the tangible real world amounts of goods being produced is down down down), "we need to save the planet and help out student debt", "it's because of political opponents fighting us via money" (it's a conspiraceeeeeh!). I recently read a bit about Romania inflation in the 90s. Lasted 7 years, and the government cleared its debt (but not always the debt of the plebe), and created a great reset. The money masters did just fine, and a few people even got rich. 99% of the population did not do just fine. The entire east europe was depressed, russians are famous for being alcoholism masters. Romanian inflation peaked at "only" 255% and the public got used to it, it was advertised as normal. People that worked their entire lives and had some savings lost everything. Via inflation their wealth was transferred to the government, with most of it simply evaporating because unlike what USA millennials think this is not a zero sum game (pie). As if today wealth is the same as the paleolithic wealth and all it did was move around. They say wealth does not simply get created out of thin air, that's funny to me because a lot of it does, thin air contains humidity, CO2, warmth, and that's all it takes for much of agri wealth. We do not come from the earth, we come from thin air as we are carbon based lifeforms not silice based. Inflation in Romania started as early as the beginning of the 1980s, from the socialist government (yes, again) robbing the population to pay back its debt as it had strings attached, following the 1979 Oil crisis. The collapse of the USSR it led to did not save them, and it continued and got worse in the 90s. To avoid starving to death, Romanians, which were mostly rural, grew food in their garden and helped each other. They knew each other, did not move much, had no migrants. To compare this to others, Venezuela has 85% urbans, and the USA 80%. Europe is in the 80s too. Also I want to note that business owners cannot magically raise wages before prices go up because they might not have the cash AND they cannot predict the future. People with savings and people with jobs will lose. Broke people reliant on welfare lose too (compared to where they used to be not what they produce which is zero). People with debt might win, probably lose too as the government cares about its spending and its debt, not yours. Filthy rich people win, Singapore is only 1 plane ticket and 1 clic away. They always seem to win don't they? There are 4 plans to a group of people: In Europe and the USA people move around - especially in the USA - and they don't know each other. In Europe and the USA there are many migrants, sometimes they don't even speak the language. The countries are very heterogeneous. In Europe and the USA 80% or more of the population is urban, and clueless on how to grow food, and very much NOT resourceful. Helpless. The USA are even running a "divide to conquer" strategy, with camps hating each other. They won't help each other or fight back inflation. The plan B seems very hard to execute. And plan C? Europe and the US are the ones sending food to Africa. Who will send help to them? Argentina? Haha! (Argentina is one of the largest grain exporter that's why, still... they're not THAT big). Smells like a plan D. As I said I doubt they will run the inflation to 4 digits and more. But 50% is ahead of us. Slowly boil these frogs. Food can still somehow be grown and bought in these conditions. Might see a drop in production, but EU & NA overproduce. Plus the greens want to grow more bio food, and reduce meat production (that turns hay we cannot eat into juicy steaks and chicken legs). The west food production might drop a bit but as we overproduce it, the ones starving are african kids getting humanitarian aid not europeans. Ghana president (and others) have reduced their dependency on welfare to focus on developing their economy (tier 1 prod + tier 2 valued adding industries), he said he didn't believe in santa claus, maybe he reads my ideas? African countries choice to distance from aid might have a bonus: not starving to death when EU & NA can't send food there. Now unpaid for made in China smartphones, computers, tvs and consoles? Forget about it! Enjoy going back to board games. Less CO2 emissions. Greta is going to be happy. I miss the good old days of board games. People that understand percentages and ROI win all monopoly games. Less stupid TV nonsense, less social media crap, more thinking games equals hard times creates less dumb men. EU & NA does not just import TVS and computers, there's also drugs... Well old people might have to leave us a bit earlier than expected. In any case, the west will go back to simpler times, they will have to get used to a lower standard of living and that's a good thing! I look forward to less electronics and more outdoor activities and board games. And less clown twitter imaginary world cancel warriors!
TVC:NI225
by MrRenev
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