According to the establishment survey of employment, released last week by the Bureau of Labor Statistics, total employment increased, month-over-month by 263,000 jobs. The “job market stays strong” reads one CNBC headline, and the new jobs print was hailed as a great achievement of the Biden Administration by MSNBC pundit Steve Benen. 

Yet, the employment data is possibly the only data that looks good right now, and that’s not much comfort since employment is a lagging indicator of the economy’s direction. In fact, if we look beyond the employment survey, what we find is an economy where real earnings are falling, savings are falling, and more people are taking on second jobs to make ends meet. 

The first indicator of this is the fact that while total jobs have shown some relatively strong growth, the total number of employed persons has been nearly flat for months, and only last month (September 2022) did it finally return to pre-covid levels. In fact, the jobs recovery in employed persons took 32 months to return to the previous peak. The fabled “v-shaped recovery” promised by advocates of covid lockdowns never materialized. Had there been a v-shaped recovery, employed persons would have recovered to previous peaks by mid 2021. It ended up taking about 18 months longer than that. 

jobs

So, what we’ve really seen is a case in which total jobs—as measured by the establishment survey—have increased more than total employed persons. That suggests the “job growth” is really a matter of people working a second job. Indeed, the anecdotal evidence points toward this being the case. They’re doing it because price inflation means people have to work more to make ends meet. 

CNBC reported late last month that 

Nearly 70% of Americans are looking for extra work to combat inflation, according to more than 1,000 full-time workers, part-time workers and unemployed workers surveyed by Bluecrew, a workforce-as-a-service platform, in September.

Already, 85% of Americans said they’ve changed their spending habits due to inflation, 72% say it’s impacted the way they view their job and 57% have sought out new or additional roles in the past year, according to the survey.

CBS also reports

With U.S. inflation racing ahead worker wages, a growing number of Americans are taking on second jobs to make ends meet.

Many people have already reined in spending where they can, while others have tapped their pandemic savings to cover the rising cost of food, gas, rent and other necessities. Yet the highest inflation in 40 years is weighing heavily on millions of households. Three-quarters of middle-income Americans say they don’t earn enough to pay for the cost of living…

This certainly all makes sense considering that price inflation in August soared 8.3 percent, and growth in average earnings did not keep up. 

cpi

This is the “American dream” the Fed has given us: work more jobs and longer hours to keep paying those bills that are now growing at 8 percent per year. 

Not surprisingly, real disposable personal income continues to fall. From data released by the Bureau of Economic Analysis, we find that real disposable personal income was down by 4.4 percent in August, year over year. Growth has been negative since December of 2021, and it is well off trend since that time, and disposable income has gone nowhere since early 2020:

disp

The personal savings rate has also cratered, falling to 3.5 percent, which is the lowest measured since 2008, when the US was in recession. 

saving

The state of the economy is this: we have one lagging indicator (employment) suggesting that things are going well. Meanwhile, savings are falling, disposable income is falling, and real wages as going down as well. 

Moreover, a recession in coming months is virtually assured according to indicators from the yield curve and the money supply. 

Money supply growth has plummeted in recent months strongly suggesting a recession is soon to come. The yield curve has also inverted, and this has always been followed by a recession in recent decades. 

yield

Slowing in the market nevertheless has started to become more apparent in recent weeks. Job openings in August1while still at high levels—fell to a 14-month low in August. Earlier this month, Facebook parent Meta announced a hiring freeze. Overall, tech sector payoffs have continued to mount, with other sectors feeling the pinch as well. Peloton, Spotify, Goldman Sachs, and Wells Fargo have announced layoffs in recent weeks. The usual late-boom prohibition on admitting a recession is coming appears to have finally disappeared as well. Jamie Dimon at JPMorgan Chase now predicts a recession by mid 2023. It looks like, outside of retail and hospitality, strong job growth is already over for this cycle. 

The US economy is finally experiencing what was already in the cards in late 2019 as numerous indicators pointing toward a brewing recession. This, however, was staved off by the massive amounts of money printing that came with the covid lockdowns and the 18 months of extreme monetary stimulus that followed. 

Now, instead of just a recession, we have a brewing recession plus 40-year highs in price inflation. The only good news in all of this is that the Fed appears to have gotten the message—for now—that inflation is entrenched, strong, and isn’t going away without a sizable amount of monetary tightening. The Fed is the cause of all this, of course, and the only way out now is to pop the bubbles the Fed created. 

Wall Street hates to hear this, and that’s why the markets went down in the wake of last week’s “strong” employment report. The fact that job growth still hasn’t tanked tells the Fed that it still hasn’t done enough to end the inflationary boom it created. Wall Street is now addicted to easy money, and that’s what drives the market—not productivity or market fundamentals.

Unfortunately for the rest of us, history suggests that anything other than sky-high interest rates and quantitative tightening is unlikely to bring a quick end to price inflation. The Fed’s slow and steady policy of allowing interest rates to rise is likely to require several years to bring inflation under control. In the meantime, we’re therefore looking at years of elevated inflation and economic malaise. 



Depopulation Agenda Continues As World Leaders Prepare For Nuclear War




Unlike Joe Biden, investors and the public at large believe the US is entering a recession.

Biden claimed he doesn’t think they’ll be a recession – even though the US has technically been in one the last two quarters – and says if there is one, it’ll be “very slight.”

“It hadn’t happened yet. It hadn’t… I don’t think there will be a recession,” he told CNN. “If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”

On the other hand, JPMorgan’s Jamie Dimon said the U.S. is likely to tip into a recession within the next nine months.

“These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they’re likely to put the U.S. in some kind of recession six to nine months from now,” Dimon said in regards to inflation and rising interest rates.

He warned the S&P 500 could even fall another 20%, stating that “the next 20% would be much more painful than the first.”

City planners across the country are already preparing for an upcoming recession, according to a new survey by the National League of Cities.

“Concerns about an impending recession have forced many municipalities to budget conservatively, the report said,” according to Financial Advisor Magazine. “Cities have already been grappling with supply-chain issues, which have impacted their cost of operations and made infrastructure projects challenging.”

Furthermore, the National League of Cities CEO said that “America’s cities are bracing for stagflation and possible economic downturn.”

Investors are already bracing for an upcoming recession, with the popular ETF Trends blog already publishing an article on “recession realities.”

“In the face of pessimism about the possibility of a recession and the Fed’s efforts to curb inflation at any cost, many investors may be worried,” the outlet wrote. “An analysis of the historical data from past recessions suggests that waiting for favorable market conditions could leave an investor at a disadvantage, compared to those who remain in, or enter, the market, irrespective of current conditions.”



The problem with price inflation is that it often makes it impossible to track the true health of consumer demand. 

For example, in August of this year Walmart reported a jump is overall sales, but also a decline in profits.  How is this possible?  Spiking inflation in most goods means people have to pay more for the same amount of stuff they usually buy.  But, Walmart also has to deal with higher wholesale prices and declining customer purchases as people start to make cuts to their retail budgets.

In other words, inflation makes it seem like sales are increasing when in reality profits are plummeting.

Another way to track actual retail performance without price inflation obscuring reality is to examine shipping volume and shipping rates.  In the summer, import volumes to the US began dropping off a cliff, indicating that consumer demand was indeed being affected by inflation/stagflation.  Now, trans-pacific shipping rates have also plunged at least 75%.  Shipping companies are reporting that empty cargo containers are becoming frequent in freight to the US, with companies scrambling to adjust after two years of boats overflowing with goods.

One thing that is important to note is that this process has been ongoing and has very little to do with the Federal Reserve’s rate hike program.  It is a separate issue tied directly to price inflation and Fed rate hikes have been ineffective in dealing with this problem.

Another issue that needs to be addressed is that prices are still high.  Faltering consumer demand is not dragging inflation back down to Earth as many economists expect, and this is a direct consequence of a stagflationary environment rather than a purely deflationary one.  Prices on many goods (necessities in particular) stay high or continue to climb while demand falls.  This is caused by high costs in raw materials, manufacturing and wages translating over to high prices in wholesale.  Retailers cannot lower prices much despite falling demand because profit margins are so thin.

The huge decline in volumes and shipping rates signal an important shift in the US economy and are a warning of changes to come.  Most importantly, the drop indicates that the $8 trillion in covid stimulus money that was helicopter dropped on the public in 2020 and 2021 is now gone, or at least, the effects are finally ending.  But what does this mean?

First, it means job demand is going to explode.  The millions of workers that were happy to live off of unemployment, covid welfare and their parents rather than participate in the economy are now going to be searching for work.  And, for now, there are plenty of empty job positions for them to fill.  This means a continuing jump in employment as job availability sees declines.  

However, with profits slumping and demand falling the US will then see actual job losses and mass layoffs.  Stagflation will continue to hold until unemployment hits a level that affects manufacturing and costs in raw materials.  This will likely take some time.

The point is, the economy is not going to behave within the traditionally accepted mechanics.  We are not dealing with a standard inflationary crisis or a standard deflationary crisis.  There are elements of both at play, and the instability is much worse than was witnessed during the stagflationary event of the 1970s.  

The US is now entering a stage of implosion in demand, inevitably followed by rising unemployment.

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While the Fed sits around and rearranges numbers, equations and definitions to try and couch what is obviously an ugly inflationary picture for the country, at least one company is giving it to people straight: PepsiCo.

The company reported earnings this morning, posting a 9% rise in its Q3 sales and offering up increased guidance as it keeps raising prices on both snacks and its flagship beverages.

The 12% increase it expects from full year organic revenue, noted by the Wall Street Journal this morning, comes at the hands of average prices rising an astonishing 17% from the year prior. The price hikes have also helped the company raise its profit outlook. It now expects per-share earnings growth of 10% for the year, the report notes.

The rise in prices has helped offset a “slight decline” in overall sales volume, the report says. This means that Pepsi is fighting the recession that the country is in with more inflation. 

It also is a stark reminder of what the real year-over-year cost hikes of everyday goods has been for everyday Americans, despite CPI continuing to hover in the high single digits. In addition to prices rising, consumers are also grappling with shrinkflation, wherein more expensive items come in packaging that contains less actual content than it used to. 

Companies like Pepsi have been passing along the rising cost of raw materials, transportation and labor, the report says, reminding us that food inflation in the U.S. is the highest it has been in 40 years.

Grocery prices were up 13.5% in August and this week we will get the latest CPI data. If Pepsi is a leading indicator, there doesn’t seem to be much to be optimistic about…

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Steve Bannon of warroom.org appeared on The Alex Jones Show Thursday to break down the dire state of the collapsing global economy and stress how vital the coming midterms actually are:

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As natural gas and electricity prices soar, many European households turn to firewood, a move to offset higher energy costs as the heating season begins.

Rising demand for firewood is sending much of Europe back to the ‘medieval’ days of using stoves and fireplaces to heat homes. 

The sabotage of the Nord Stream pipeline system underneath the Baltic Sea from Russia to Germany sparked even more energy uncertainty among Germans as many brace for what could be the coldest and possibly even the darkest winter in a generation due to rising risks of power blackouts. 

On Friday, European Union leaders failed to agree on a price cap for NatGas as the energy crisis might worsen this winter as freezing weather could quickly draw down supplies from storage facilities and catapult prices even higher.

About 70% of Europeans use NatGas to heat their homes, and according to Bloomberg, some 40 million people are now burning wood to heat their homes. New demand for a heat source that’s been around for ages has doubled the price of wood pellets per ton to 600 euros in France. 

Bloomberg pointed out Europeans are “panic buying the world’s most basic fuel.” Demand is so high that Hungary banned exports of wood pellets, and Romania capped firewood prices through spring.

“It’s back to the old days when people wouldn’t have the whole house heated,” said Nic Snell, managing director at British wholesale firewood retailer Certainly Wood. He added firewood is in high demand. 

The boom for firewood has also meant stove demand is high. Gabriel Kakelugnar AB, a manufacturer of high-end tiled stoves, said orders had surged more than fourfold, and customers have to wait until March for delivery. 

Firewood has become a scarce commodity this heating season, forcing some households to burn anything they can find: 

“We are worried that people will just burn what they can get their hands on,” Roger Sedin, head of the air quality unit at the Swedish Environmental Protection Agency, said. 

In fact, this is true, Polish households have started to burn trash and coal as firewood supplies dwindle. 

The UK has finally come around to informing its citizens about power blackout risks. The country’s grid operator warned about the “significant risk” of NatGas shortage that could trigger three-hour power cuts this winter

Well before the heating season, we detailed in length about soaring demand for firewood. We noted in August that “Google Searches For “Firewood” In Germany Have Exploded” and even in July cited Deutsche Bank senior economist Eric Heymann who indicated a “substitution for gas” would be firewood. 

Europeans have to ask if soaring electricity bills and a cost-of-living crisis are worth supporting NATO’s proxy war in Ukraine via sanctions against Russia. People in Prague are already tired of Western sanctions that have devastated their economy and financial well-being. 

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On Monday, America’s third-largest union for workers in freight rail, which represents almost 12,000 railroad employees, rejected a temporary agreement arranged by the administration of US President Joe Biden to prevent a potentially crippling nationwide railroad strike, according to NBC News.

In September, trade unions and major US railway companies signed a preliminary agreement, which made it possible to remove the threat of a general railway strike, which could stop the movement of goods throughout the country and affect the supply of food and fuel both in the United States and abroad.

According to a statement from the Brotherhood of Maintenance of Way Employees, which is a division of the Teamsters Union – 56 percent of workers voted against the tentative agreement.

Rejecting the agreement may lead to a nationwide rail strike that would be devastating for the economy, according to US media.

The rail shutdown threatens to freeze nearly 30 percent of the US freight traffic and cost the US economy $2Bln a day, as well as trigger an increase in inflation, and a cascade of transport problems affecting energy, agriculture, manufacturing, healthcare and retail.

Earlier, Biden announced that a tentative deal had been reached between several unions and freight railway companies that would allow the industry to operate effectively as a vital part of the US economy.

The deal provides for a 24 percent increase of rail workers’ wages over the next five years, an improvement in their working conditions, and a cap on the cost that rail workers pay for healthcare.

The tentative agreement with the unions, which collectively represent approximately 120,000 rail workers, would avert a potential nationwide strike.

According to the Bureau of Labor Statistics, the number of railway workers in the United States has fallen from 600,000 in 1970 to about 150,000 in 2022 – a 75 percent decline.

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It’s easy to look back over the post-pandemic era and say the Federal Reserve stayed too loose for too long in the face of rising CPI.

For months, the central bank ignored the inflation problem, claiming it was transitory. But as Peter Schiff pointed out in a podcast, the loose money problem isn’t anything new. It’s been going on for decades.

You can trace the Fed’s inflationary monetary policy all the way back to 1998 and the Long-Term Capital Management bailout.

That’s when the Fed really started printing money. And then it printed even more money in advance of Y2K. And then even more money after the NASDAQ bubble popped in 2000. And even more money after the real estate bubble popped in 2008. So, it’s not just one year of excess money printing. The Fed has been too loose for almost 25 years, flooding the economy with cheap money.”

Wharton School of Business finance professor Jeremy Siegel was recently on CNBC arguing that if the Fed had simply started hiking interest rates and ended quantitative easing sooner, instead of claiming that inflation was transitory, we wouldn’t be having the inflation problem today.

That’s short-sighted. The seeds were sown years ago.

But why didn’t Federal Reserve Chairman Jerome Powell act sooner? Peter said it was because he didn’t want to create a problem by fighting inflation because, at the time, he could claim inflation wasn’t a problem.

They didn’t want to fight it in 2021 because it would have created a problem for the economy. Now, the inflation they didn’t want to fight because doing so would have created a problem has itself become the problem. And so, they’ve got a problem either way. They’re damned if they do, and they’re damned if they don’t. So, that’s why they’re fighting inflation now. But even if they had chosen to fight it earlier, before it got this out of hand, they still would have created a crisis. Because it’s not just being too loose for a year. Again, it’s 25 years of reckless money printing — of malinvestments and misallocations of resources. This is a gigantic credit bubble. We just added even more fuel to that bubble in the last year.”

Peter said there was no way around this. There wasn’t a “correct” decision the Fed could have made last year.

All [the Fedf] did was make the only decision that would allow them to postpone the pain for a little longer. They had no idea how much time they were buying by being that reckless. But they didn’t care. The name of the game for the Fed is always ‘don’t create a problem even if it solves a bigger problem.’ Wait for that bigger problem to become a crisis.”

Peter said he knew 2008 wasn’t the real crash. The reckless monetary policy in the response to the Great Recession simply papered things over and kicked the looming crisis down the road.

Well, the real crash is the one we’re headed for right now. And we were going to have that crash regardless of the mistakes the Fed made in 2021. We were going to have it because of all the mistakes it made — not just going back to 2008 — but going all the way back to 1998.”



I have said it many times in the past but I’ll say it here again: Stock markets are a trailing indicator of economic health, not a leading indicator.

Rising stock prices are not a signal of future economic stability and when stocks fall it’s usually after years of declines in other sectors of the financial system. Collapsing stocks are not the “cause” of an economic crisis, they are just a delayed symptom of a crisis that was always there.

Anyone who started investing after the crash of 2008 probably has zero concept of how markets are supposed to behave and what they represent to the rest of the economy. They have never seen stocks move freely without central bank interference and they have only witnessed brief glimpses of true price discovery.

With each new leg down in markets one can now predict every couple of months or so with relative certainty that investor sentiment will turn to assumptions that the Federal Reserve is going to leap in with new stimulus measures. This is not supposed to be normal, but they can’t really help it, they were trained over the past 14 years to expect QE like clockwork whenever markets took a dip of 10% or more. The problem is that conditions have changed dramatically in terms of credit conditions and price environment and it was all those trillions of QE dollars that ultimately created this mess.

Many alternative economists, myself included, saw this threat coming miles away and years ahead of time. In my article ‘The Economic End Game Continues’, published in 2017, I outlined the inevitable outcome of the global QE bonanza:

The changing of the Fed chair is absolutely meaningless as far as policy is concerned. Jerome Powell will continue the same exact initiatives as Yellen; stimulus will be removed, rates will be hiked and the balance sheet will be reduced, leaving the massive market bubble the Fed originally created vulnerable to implosion.

An observant person…might have noticed that central banks around the world seem to be acting in a coordinated fashion to remove stimulus support from markets and raise interest rates, cutting off supply lines of easy money that have long been a crutch for our crippled economy.”

The Fed supports markets through easy money that feeds stock buybacks, and it’s primarily buybacks that kept stocks alive for all these years. It should be noted that as indexes like the S&P 500 plunged 20% or more in in the first six months of 2022, buybacks also decreased by 21.8% in the same time period. That is to say, there seems to be a direct relationship between the level of stock buybacks and the number of companies participating vs the decline of stocks overall.

And why did buybacks decline? Because the Fed is raising interest rates and the easy money is disappearing.

If buybacks are the primary determinant of stock market prices, then the participation of individual investors is mostly meaningless. Stocks cannot sustain on the backs of regular investors because regular investors don’t have enough capital to keep markets afloat. Companies must continue to buy their own shares in order to artificially prop up prices, and they need cheap Fed money to do that. Stocks are therefore an illusion built only on the whims of the Fed.

And the reason for the Fed’s dramatic shift away from stimulus and into tightening? One could argue that it’s merely the natural end result of inflationary manipulation; that central banks like the Fed were ignorant or arrogant and they weren’t thinking ahead about the consequences. Except, this is false. The Fed knew EXACTLY what it was doing the whole time, and here’s the proof…

Way back in 2012 before Jerome Powell became Fed Chairman, he warned of a market crisis if the central bank was to hike rates into economic weakness after so many years of acclimating the system to easy money and QE. During the October 2012 Fed meeting Powell stated:

“…I think we are actually at a point of encouraging risk-taking, and that should give us pause. Investors really do understand now that we will be there to prevent serious losses. It is not that it is easy for them to make money but that they have every incentive to take more risk, and they are doing so. Meanwhile, we look like we are blowing a fixed-income duration bubble right across the credit spectrum that will result in big losses when rates come up down the road. You can almost say that that is our strategy.”

In other words, Powell and all other Fed officials knew ten years ago what was going to happen. They knew that they were creating a massive financial bubble and that when they raised rates that bubble would collapse causing serious economic damage. Yet, they kept expanding the bubble, and now with Powell as chairman, they are popping the bubble. No one honest can claim that the central bankers were “blind” or ignorant. This is an engineered crash, not an accidental crash.

If the crash is deliberate then it is a means to an end, and there is no reason for the Fed to intervene to save markets at this time. Some people will argue that this puts a target on the Fed as a saboteur of the economy, and they wonder why the central bankers would put themselves at risk? Because they have a rationale, a way out, and it’s called “stagflation.”

Price inflation coupled with negative GDP is the basis for a stagflationary environment. The only other factor that is missing in the US today is rising unemployment, but this problem will arrive soon as numerous companies are slated to start layoffs in the winter. Stagflation is the Fed’s perfect excuse for continuing to raise interest rates despite plunging stocks. If they don’t hike rates then price inflation runs rampant and GDP declines anyway. If they return to QE then an inflationary calamity ensues.

In order to “save us,” they have to hurt us. That’s the excuse they will use.

It’s a Catch-22 event that they created, and I believe they created it with a purpose. But let’s imagine for a moment that the Fed has the best interests of the economy at heart; would a pivot back to QE change anything?

Not in the long run. Rising inflation is going to crush what’s left of the system anyway. Supply chain problems will only get worse as costs rise. To return to stimulus would indeed put a target on the central bankers. It’s better for them to pretend as if they are trying to fix the problem rather than continue with policies that everyone knows are draining pocket books.

Stocks saw a brief rebound this past week for one reason and one reason only – Rumors of a Fed pivot were spread and investors were hoping for a stop to rate hikes or a glorious return to stimulus measures. We will see many short rebounds in stocks like this over the next year, each one initiated by rumors of a reversal in policy. It’s not going to happen.

Will the Fed stop rate hikes? Sure, probably when the Fed funds rate is between 4% to 5%. Will that mean a reversal is on the horizon? No, it won’t. And it won’t mean that the Fed is done with rate hikes. They could start hiking again a few months down the road as price inflation persists.

Will the Fed return to QE? I see no reason why they would. Again, they are fully aware of the damage they have done with the QE bubble and the popping of that bubble. They would not have hiked rates in the first place unless they wanted a crash.

Consider this: What if the goal of the Fed is the destruction of the middle class? What if they are using the false hopes of small time investors in a return to QE? What if they are luring investors into markets with rumors of a pivot, tricking those investors into pumping money back into markets and then triggering losses yet again with more rate hikes and hawkish language? What if this is a wealth destruction steam valve? What if it’s a trap?

I present this idea because we have seen this before in the US, from 1929 through the 1930s during the Great Depression. The Fed used very similar tactics to systematically destroy middle class wealth and consolidate power for the international banking elites. I leave you with this admission by former Fed Chairman Ben Bernanke on the Fed’s involvement in causing the Great depression through rate hikes into weakness…

In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn.

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.” – Ben Bernanke, 2002

Is the Fed really sorry? Or are they just repeating the same strategy they used 90 years ago while acting as if they are unaware of the eventual outcome?


Depopulation Agenda Continues As World Leaders Prepare For Nuclear War




Some people in the mainstream have been talking about gold’s demise as an important financial asset.

Meanwhile, central banks continue to buy gold. What are the gold naysayers missing? Peter Schiff appeared on Fox Business with Charles Payne to talk about the price of gold and why some investors are starting to realize they’ll need gold as the Fed loses its inflation fight.

Payne opened up the interview by saying, “You’ve heard about the death of gold a million times. But what is it that people forget about gold? When it’s going down, moving flat, not moving, and it feels like, OK, it’s no longer what it might have been in the past.”

Peter said, “I didn’t get the memo!”

“And had I gotten that memo, I would have just thrown it in the trash. But what a lot of people don’t realize about gold is that it’s money.  It is liquidity. It’s everything else that loses value in relationship to gold. Gold is a better form of money than anything governments have come up with to replace it. And in times like this, where we have inflation that’s going to run out of control, and central banks that are powerless to rein it in because they’ve created it, and they’ve created economies that are dependent on it, more and more people, including central banks, are going to be returning to gold.”

Peter pointed out that gold sold off based on the notion that the Federal Reserve was going to win its fight against inflation. We had a rally in gold after the Bank of England surrendered to inflation and pivoted back to lose monetary policy to rescue its pension system. Peter said some people might be starting to realize that the Fed isn’t going to win either.

“The Bank of England was just as committed to fighting inflation as Powell, but as soon as it created the beginnings of a financial crisis, they did an about-face and went right back to quantitative easing. I think the same predicament is going to befall the Federal Reserve, and before too long, inflation is going to take a back seat to an even greater crisis — a financial crisis and a worsening recession. And the Fed is going to go right back to more quantitative easing. There’ll be no more rate hikes. In fact, there may be rate cuts. Inflation is going to be nowhere near 2% when they do that. In fact, it’s headed closer to 20%.”

Payne agreed with Peter, saying the Fed’s best weapon has been “jaw-boning,” and that he doesn’t see the central bank going as far as it claims. He also brought up the issue of the $31 trillion national debt. Will higher interest rates spark a debt crisis for the US government?

Peter reminded us that a year ago, Treasury Secretary Janet Yellen said there was no reason to worry about the national debt because interest rates were so low.

“Well, now interest rates have skyrocketed.”

When Janet Yellen made that comment, the yield on a 1-year T-bill was about .25%. Now it’s 4%.

“You’ve got a 16-fold increase in the cost of funding that debt. And remember, that debt keeps having to be rolled over. The government has very short financing on this national debt. So, it’s already a problem. And it’s going to become a much bigger problem. It’s one of the reasons the Fed is going to chicken out in the fight against inflation. Because the US government would be forced to default on that debt if it actually let interest rates rise high enough to bring inflation down to 2%.”



Depopulation Agenda Continues As World Leaders Prepare For Nuclear War