Tag: inflation

Thanks To The Cost Of Living Crisis, U.S. Household Debt Has Soared To The Highest Level Ever Recorded

Our entire economy is fueled by debt.  In fact, if going into more debt was suddenly banned the U.S. economy would instantly hit a brick wall.  For the vast majority of us, our lifestyles simply cannot be funded by what we actually make.  So we use debt to bridge the difference, and this has particularly been true during the cost of living crisis.  Total household debt has now reached a grand total of 17.8 trillion dollars, and we continue to pile up more with no end in sight…

A quarterly report published this month by the Federal Reserve Bank of New York on household credit and debt found that between the first quarter of 2021 and the second quarter of 2024, credit card debt surged 48.1% while household debt — which includes mortgages and auto loans — rose by 21.6%.

In dollar terms, credit card debt rose from $770 billion in early 2021 to $1.14 trillion in the most recent quarter, while household debt increased from $14.64 trillion to $17.8 trillion in the same period.

I did not realize that credit card debt had risen by more than 48 percent since the first quarter of 2021.

That is extremely alarming, because it indicates that millions upon millions of households are literally living on the edge of financial disaster.

And the fact that delinquency rates have been climbing just underscores how serious things have become…

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The Trajectory of Emergency Lands on Price Controls

The US’s serious bout of inflation – mirrored in many countries in the world – was set in motion in the first week of March 2020, like much of the rest of our ongoing emergency. This was a fortnight before the lockdowns were announced, indicating that much was going on behind the scenes. The Federal Reserve turned on a dime to provide enormous liquidity to the system, just days following the CDC’s briefing of the national press of coming lockdowns, about which the Trump administration seemed then to know next to nothing. 

The fiscal and monetary fun lasted only so long. Following the inauguration of the new president, the first round of bills started coming due, and that has continued until the present, rapidly wiping out the value of the stimulus payments that seemed to have made everyone suddenly rich without working. 

Only after two years and after some 10 months of resulting declines in purchasing power, along with supply chain breakages that left so many goods in shortage, did the Fed start to worry and raise interest rates from zero percent. That was presumably designed to sponge up the excess liquidity that had been injected directly to the veins of economic life. The Fed’s action slowed but did not end what they had unleashed to deal with the virus that was widely advertised as universally deadly even though every specialist knew otherwise. 

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“Price Gouging”: Basic Groceries Cost 21% More… Because of Biden-Harris Regime Policies

Amid reports that Kamala Harris will announce her first policy position on Friday – an attack on “greedy” grocery companies with a plan for price limits – there’s bad news for American consumers about their grocery costs.

Harris’s plan, reported by multiple outlets on Thursday, said her idea is to pursue a “price control” scheme, a tactic that repressive governments often pursue to try to make their economies look better.

It is the Post-Millennial that documented, “Americans are experiencing the consequences of increased grocery prices under the economic policies of the Biden-Harris administration. The cost of food has not been this high since the Carter administration.”

The report said the cost for “basic,” “food at home” products is up 21% since Biden and Harris took over the White House.

Inflation also remains a top concern among voters this election year, with 77% seeing it as a “very important issue.”

“Grocery prices have risen significantly under Harris’s time in the White House, despite the White House’s attempts to minimize the impact of recent price increases. Harris was instrumental in the legislative agenda that resulted in this outcome. Her tie-breaking votes in the Senate were instrumental in the passage of trillions of dollars in expenditure, which many economists believe contributed to the inflation crisis, Breitbart News reported.”

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21 Facts That Joe Biden Doesn’t Want You To Know

It takes a lot of gumption to go on television and repeatedly lie to more than 300 million Americans.  I honestly don’t know how Joe Biden does it.  I suppose that after you have been lying for your entire career, lying comes as naturally as breathing does.  Sadly, there are still millions of Americans that are falling for his lies after all this time.  Biden would like for us all to believe that the economy is “booming”, that the southern border is under control, that our communities are safe, and that Ukraine is going to win their war against Russia.  Our entire society is literally crumbling all around us, and Biden and his minions have brought us to the brink of global war.  I am entirely convinced that he has been the worst president in U.S. history, and that is really saying something.

Ultimately, Joe Biden is just another slimy politician that is trying to save his job.

I get that.

But come on man, how can anyone actually believe the nonsense that he is shoveling?

There are a few numbers that Biden can cherry pick to try to make himself look good, but here are 21 facts that Joe Biden doesn’t want you to know…

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As Inflation Takes Its Toll Americans Set to Get Smaller Social Security COLA in 2025

America’s seniors face a financial squeeze in 2025, with Social Security increases lagging behind rising costs of basics like food and housing.

This comes as Democrats spend billions on illegal immigrants, raising questions about budget priorities.

The Senior Citizens League (TSCL) projects a 2.63% cost-of-living adjustment (COLA) for Social Security in 2025. This translates to roughly $45 more per month for retirees.

“It’s not enough,” says Shannon Benton, TSCL’s executive director. “Seniors need more to cover rising prices on everyday items.”

Let’s look at the numbers:

– 2024 COLA: 3.2% (about $59 more per month)
– 93% of seniors say this increase didn’t cover their rising costs
– Many report monthly expenses rising by $185 in 2023

This gap is causing real problems.

Benton notes growing “food insecurity” among seniors. Many struggle to pay for basics like heating and cooling.

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Bidenomics: 27% of Americans Say They Skip Meals Due to Rising Cost of Food

27% of Americans say they skip meals due to the rising cost of food.
39% say they skip meals to make house payments.

Unusual Whales reported:

39% of Americans say they’ve skipped meals to make housing payments, per Clever Real Estate survey.

And among millennials, that figure rose to 44%. Among Baby Boomers, it was 20%.

Meanwhile, Housing affordability in the US is near all-time-lows, per $GS.

In November, nationwide, households need six-figure incomes to comfortably afford the typical home for sale, according to a report by Redfin.

Last month, the nation’s home buyers needed to make about $107,000 annually, up from about $74,000 a year earlier, to afford a median-priced home, according to Redfin. That’s an increase of nearly 46%.

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Bidenomics and California’s $20 Minimum Wage Force San Francisco McDonald’s to Close After 30 Years

The McDonald’s at Stonestown Galleria in San Francisco announced it will shut its doors permanently.

After serving the community for more than three decades, this fast-food staple cites the crushing combination of high operational costs and recent legislative changes as the primary reasons for its closure.

The franchisee owner, Scott Rodrick, confirmed the closure in a statement to ABC7’s Dion Lim.

According to Rodrick, the closure is due to two main reasons: an uncompromising landlord who refused to negotiate a “sensible” rent, and the sky-high property taxes and mall fees, which were reportedly the highest paid for any single location within the company.

Rodrick also pointed out that conducting business in California had become increasingly challenging, especially with the state’s new minimum wage for fast-food workers. He described this as a “gut-wrenching” day for his family.

A notice posted on its door reads:

Dear McDonald’s Customer,

On June 23, 2024, this restaurant (255 Winston Drive at Stonestown Galleria) will be permanently closing. It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years. We are thankful to have been a part of your daily meal routine, either for an Egg McMuffin in the morning or a Happy Meal with the kids after an afternoon of shopping at Stonestown.

All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s. We hope that you will continue to visit us at our other neighboring McDonald’s restaurants. Or you can have your favorite McDonald’s meal delivered to you via our digital app.

The fast food chain is the latest casualty of Bidenomics and Governor Newsom’s $20 minimum wage law.

Last week, one of Hollywood’s most iconic restaurants, Arby’s Roast Beef, closed after an impressive 55 years in business.

Gary Husch, Leviton’s son-in-law and the general manager of the establishment, echoed these sentiments. Speaking to the Los Angeles Times, Husch emphasized that the combined effects of inflation, the pandemic’s impact on foot traffic, and the draconian wage increase directly led to their difficult decision.

“With inflation, food costs have skyrocketed and the $20-an-hour minimum wage has been the final nail in the coffin,” Husch said.

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Here’s Why the World is Falling Apart (and What You Can Do About It!)

Do you ever get the feeling that everything is breaking down all at once?

Forget about starting a family or buying a house. It’s becoming harder and harder for young men and women just to put food on the table.

And those lucky ones who defy the odds and manage to start a family sure aren’t spending their time at neighbourhood barbecues while the kids play a game of pick-up street hockey. Today, they’d be lucky to pry the kids away from their device long enough for them to notice that there are other kids in their neighbourhood. Not that the parents are any better at living life.

What’s everyone doing on those devices? Scrolling through their never-ending social media feeds of doom porn and ragebait, of course! They’re busy watching Israel holocaust Palestine and NATO inch closer to nuclear war with Russia and people at home engaging in public freakouts as society disintegrates and the world devolves into madness.

That faith in the ability of hard work and determination to help us all improve the planet and leave a better place for our children? Gone. Replaced by a sinking feeling that the world is heading to hell in a handbasket and that maybe it isn’t worth saving anyway.

Yes, from the macrocosm of geopolitical crises and financial trickery to the microcosm of economic disintegration and spiritual malaise, it seems like everything that could go wrong is going wrong. Increasingly, it feels like we’re just bystanders watching the messy spectacle play out on our screens, digital drivers rubbernecking at the car crash of chaos unfolding on the information superhighway.

But did you know that there’s a name for this phenomenon? And that it’s part of a years-long plan by the powers-that-shouldn’t-be to destabilize the world and move their agenda forward? And did you also know that by merely watching this disaster taking place, we’re actually helping that plan along?

No? Well, you’re about to learn all about it! Let’s dig in.

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The Achilles Heel Of The Fiat Money System

The fiat money system will not disappear just like that. Any expectations or hopes to that end should be tempered. Yes, the fiat money system could collapse; yet there is a significant likelihood it will persist longer than most people might think. This prolonged existence may come at a cost: a fascist state encroachment on the freedoms of citizens and entrepreneurs would be more profound than most people realize.

Much ink has been spilt about the impending collapse of the international fiat money system. It is a debate that naturally gains momentum in times of crisis—as witnessed in the aftermath of the 2008/9 global financial market debacle or the politically dictated global lockdown crash of 2020/21.

At the same time, however, it is entirely justified to harbor significant concerns regarding the fiat money system. After all, it is plagued by blatant economic and ethical defects.

Are you wondering about the essence of fiat money? Let’s break it down into three characteristics:

  • State-sponsored central banks wield a monopoly over the production of fiat central bank money. Upon obtaining fiat central bank money, commercial banks are allowed to generate their own money, known as fiat commercial bank money.
  • Fiat money is typically created through lending without the backing of real savings. It is essentially created out of thin air (or ex nihilo, as it is called in Latin).
  • Fiat money predominantly exists in dematerialized form. While it may manifest as colorful printed pieces of paper, its primary existence resides in digital entries on computer systems, represented by bits and bytes.

Whether we’re talking about the United States dollar, euro, Chinese renminbi, Japanese yen, British pound, or Swiss franc, they are all fiat money. We know from monetary theory that fiat money is not “natural” or “innocent.” Unlike moneys emerging from voluntary agreements in the free marketplace, fiat money was introduced through state intervention—involving coercion and violence—leading to many negative effects.

Fiat money is inherently inflationary, gradually losing its purchasing power over time. This phenomenon disproportionately benefits a select few at the expense of the broader population.

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On Wealth Inequality, the Left Has a Point

The federal government has been waging a war against the middle class and working poor since at least 1970. Wealth inequality has steadily increased since the early 1970s, and it’s not a coincidence. It’s a result of a series of policies. The government wants the masses of American working people broke, propertyless, and dependent upon elected officials for the crumbs they give back as handouts from taxes taken.

The most insidious attack on working people has been inflation, which really took off when the federal government decoupled the dollar from gold in 1971.

The inflation tax is the most regressive tax that currently exists in federal policy.

Inflation always taxes wages twice, once when the labor is performed and the worker is awaiting payment, and again when the wages are deposited into the worker’s checking account. But inflation leaves the rich man’s yacht untaxed.

No level of inflation, no matter how high, can ever take one cent of value away from a yacht. A yacht is always going to be a yacht, no matter what the value of money is.

Inflation taxes the poor man’s rent he advances to his landlord, but leaves private jets and vacation homes untaxed.

Want to know where this inflation tax goes? The stolen value of the inflation tax doesn’t just vanish out of thin air.

Some of it goes to the government; economists even have a name for the benefit government draws from the inflation tax. It’s called “seigniorage.”

Rich people generally don’t pay the inflation tax, and many of them benefit from it. Let’s say you’re a billionaire real estate mogul, not unlike Donald Trump, with a net-worth of $1 billion. You buy houses and real estate, and when you get your 20% equity, you pull that equity out and invest it into another real estate holding. So you have properties worth $5 billion, net assets of $1 billion, and (with only 20% equity in your properties) you also have $4 billion in mortgage debt.

4% inflation lowers the value of the mortgage debt you owe, since with CPI inflation you’re just going to raise the rent 4% next year. Inflation created by the Federal Reserve Bank becomes a gift of $160 million annually to your net worth ($4 billion x 0.04).

Every year.

And it enriches them more if inflation exceeds 4%, as it has in recent years.

If the CPI is 10% (as it nearly was in 2022), inflation alone adds 40% ($400 million) to this real estate mogul’s net worth. That doesn’t count the decrease in the nominal debt paid off by the real estate mogul’s tenants.

And this assumes the value of his property holdings is only increasing at the rate of CPI inflation, which it’s vastly exceeding, thanks to Federal Reserve Bank interest rate manipulation and federal housing subsidies and incentives.

Inflation enriches the real estate mogul with a boatload of mortgages that are now easier to pay off. It also benefits the hedge fund speculator and the banker, who are in the very businesses of being in debt.

In other words, the inflation tax makes the value of money flow directly from the wallets of wage-earners to the vaults of rich people who work with debt.

As long as the working man holds money in his possession, whether in the form of credit to his employer for his labor, in his pocket, or in his checking account, inflation taxes him. Only when the money is finally no longer due to him does the inflation tax end.

Working people know this truth intuitively because inflation raises prices at the grocery store, at the hardware store, at the department store, and the price of real estate.

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