The US economy (the real economy) is collapsing as a percentage of GDP. This year over 40% of the US GDP is directly attributable to US Government borrowing (debt). Another sizable chunk comes from the Federal Reserve led financialized economy supported by artificially low interest rates resulting in share buyback and asset purchases (also the source of hyper wealth inequality). Interest rates for favored institutions (large banks and corporations) are now running sharply negative i.e. if you are are corporation borrowing at .25% and inflation is running at 6%, you are effectively borrowing at -5.75% (negative real rates). Borrowing at negative rates creates all sorts of moral hazard, inequality, destroys the competitiveness of small business that cannot borrow at negative rates, and results in companies and innovation being swallowed by the large multinationals, and drives up the cost of everything, particularly assets. Between this and printing more than 40% of all dollars ever created in the last 18 months the inflation genie is out of the bottle. The Federal Reserve created so much currency out of thin air that it not only resulted in massive inflation in this country but the entire world! These policies also have contributed to massive consumption by the American consumer that have created the largest trade deficits in history, material shortages, and wildly expanded the landfill economy (tell me again how these policies are Green). The Federal Reserve is backed into a corner and has the choice between policy error and policy error. The Federal Reserve is now gung-ho on the Green agenda as a way to make the system flush and to keep the wealth transfer and Ponzi schemes going (estimated $150 Trillion in newly minted debt at stake), they don’t give a shit about the environment. Don’t fall for the environment scam, but by all means seek ways to be less wasteful.
President Biden did a victory lap after payroll reports showing that over 500k people are newly employed this month, more than expected. For months estimates have missed the mark by a long shot. What he did not mention is that each month the US is still cratering about 1.2 million jobs, so 500k new jobs is still negative. Also not mentioned is that labor costs is up 8.5% but productivity fell an astounding 5%!!! Usually wages and productivity track each other, but as the US makes its transition from a free capitalist society to totalitarian socialist one, expect disconnects and things that previously did not make sense. The polices coming out of Washington could not be worse if the brightest minds were to focus on how to collapse a Nation. What Tuesday elections show, is that Democrats led by progressives like Bernie, AOC, and the Biden team have less than a year to push the Build Back Better (The Great Reset) agenda aimed at eviscerating the middle class and bringing about a neo-feudal society. Something big has to happen by Spring of 2022 – (create the) Problem, (propagandize and hype the) Reaction, (further create dependency and impose authoritarianism as the) Solution.