Category Archives: Business

The Making of a Market, by Eric Peters

Where does a state governor get the power to wave a wand and decree that by 2035, there will be no gas powered cars on the roads? From Eric Peters at ericpetersautos.com:

Well, the other shoes has dropped. We now know how a “market” for electric cars will be created.

It will be done by outlawing the market for cars that aren’t electric.

Having trouble selling Tab?

Forbid the sale of Coke and Pepsi!

California Governor (and Gesundheitsfuhrer) Gavin Newsome has simply decreed – via “executive order” – that anything that isn’t “zero emissions” (at the tailpipe) must be “phased out” by 2035. This means only electric cars since they are the only vehicles considered to be “zero “emissions” by the regs – no matter their elsewhere emissions – including the substantial carbon dioxide “emissions” produced by the utility plants that generate the electricity they run on.

Which there will be more of when the only cars permitted on California roads are electric. But never mind. It feels good – to the Gesundheitsguv – like the wearing of any old rag to “stop the spread” of a virus you haven’t got.

The effects will also be felt a lot sooner than fifteen years from now.

And not just in California, either.

The car companies are going to stop putting R&D money toward cars they can’t sell in California – the biggest market for cars in the country – and toward the ones they’ll be forced to sell.  

In other states, too. Because it’s likely at least some will follow California’s lead – having their own Gesundheitsguvs in charge.

Development of new non-electric cars nationally will stagnate.

The ones that remain in production will sell for more, to offset the costs of developing electric cars. The more states that force-electrify, the more expensive the non-electric car will become – until the goal is achieved of making the non-electric car at least as expensive as electric cars.

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David Stockman on the Economy’s Role in The Upcoming Presidential Election

Will the economy continue to float on a sea of debt through the election? Probably. From David Stockman at internationalman.com:

Presidential Election

International Man: Bill Clinton’s infamous phrase during the 1992 presidential election was “It’s the economy, stupid.” How important of a role do you think the economy and a continued rally in the stock market will play in the outcome of the presidential election?

David Stockman: Well, in the befuddled mind of Donald Trump, probably a considerable role as manifest in his campaign oratory. And since there are less than 50 days left, he might get away with his groundless boasting. That is, we seriously doubt that the great reckoning will commence before November 3, meaning that he will keep peddling the “but for COVID” canard, claiming that, before that, he single-handedly created the Greatest Economy Ever.

Actually, it’s the greatest BS story ever told. It rests on the utterly misleading circumstance that the Donald entered office in month #90 of what became the longest business cycle expansion in history (at 128 months in February).

Consequently, his “record” was artificially flattered by the low U-3 unemployment rates (3.5%) that naturally occur during the last 38 months of the cycle as the inventory of unused labor is finally exhausted. Of course, that’s also exactly what occurred during the final months of the 118-month expansion of the 1990s and the 106-month expansion of the 1960s, when Democrats happened to be incumbent in the Oval Office.

But when measured by something relevant, such as the average real GDP growth rate during his tenure, it turns out that the Donald’s cherished “score” is the very worst among all the presidential terms since 1948.

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Dark Years and Fourth Turning, by Egon von Greyerz

Hard times are here. From Egon von Greyerz  at goldswitzerland.com:

In an ephemeral world, few things survive. I am not talking about species or human beings whose existence on earth is also transitory. Instead I am referring to social and financial systems which are now coming to an end.

In July 2009 I wrote an article called The Dark Years Are Here. It was reprinted again in September 2018.

Here is an extract from my original article:

“The Dark Years will be extremely severe for most countries both financially and socially. In many countries in the Western world there will be a severe depression and it will be the end of the welfare state. Most private and state pension schemes are also likely to collapse. It will be a worldwide depression but some countries may only have a deep recession. There will be famine, homelessness and misery resulting in social as well as political unrest. Different type of government leaders and regimes are likely to result from this.
How long will the Dark Years last? There is a book called ”The Fourth Turning” written by Neil Howe. He has identified a pattern that repeats itself every 80 years. The pattern has been extremely accurate in the Anglophile world. We have recently entered the Fourth Turning which is the final 20 years of the cycle. According to Howe we are in the early stages of a 20 year period of economic and institutional upheaval. This is a period of Crisis when the fabric of society will change dramatically. Previous Fourth Turnings have been the American Revolution, Great Depression and World War II. According to Howe the Crisis will be substantially worse before it is over and it will last for another circa 20 years.
All of this is not good news and we hope that we and Howe are wrong regarding the severity and length of this crisis. But we fear that we are both right. We must stress again that never previously has the whole world entered a downturn simultaneously in such a fragile state both financially and economically which is why the Dark Years are likely to be so devastating and long lasting.”

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The Gathering Super Tantrum, by Robert Gore

It’s time for a divorce.

Russiagate, impeachment, the coronavirus power grab, riots, overhyped Trump “scandals” that came and went, and nonstop venom, vitriol, and vituperation come together under this label: the Continuing Tantrum. The presidential election is less than two months away, and we’re being promised the tantrum to end all tantrums, a Super Tantrum, if the harpy and the dotard don’t win.

Children don’t have a shadowy cabal and mainstream political, business, and media figures encouraging (and funding) their tantrums. Unlike Continuing Tantrum partisans, children who tantrum can be spanked or put in time out, they don’t burn down cities or launch coups, and some of them grow up.

The cabal and its useful idiots are giving the rest of us a “your money or your life” proposition. We either elect Harris/Biden or the cabal launches a coup and their thugs destroy the country. Hillary Clinton already has told Biden not to concede under any circumstances. It’s a regime-change operation similar to those the cabal has waged around the globe for decades. BLM and Antifa are kissing cousins to the US’s cat’s-paw Islamic extremists and Ukrainian neo-nazis. Fomenting violence and chaos, they’re the violent cover for their sponsors’ intrigues. Order won’t emerge from their chaos, unless your idea of order is Afghanistan, Iraq, Syria, Somalia, Libya, and Ukraine.

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It’s all laid out in the Transition Integrity Project (TIP), a blueprint of how the cabal intends to install Harris/Biden regardless of the actual election results. Couched in the plausible deniability language of war-gaming and projections, every one of its scenarios—other than a clear Harris win—leads to a constitutional bonfire fueled by street violence, court battles, legislative legerdemain, media propaganda, and possible military intervention. Its authors are circumspect, but one man’s war-gaming and projections are another man’s call to action and instruction manual.

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Vaccination: What’s Trust Got to Do With It? By Joseph Mercola

Now why wouldn’t people trust the American medical establshment? From Joseph Mercola at lewrockwell.com:

As the National Vaccine Information Center (NVIC) prepares to host the three-day, three-night Fifth International Public Conference on Vaccination that will be broadcast online October 16 through 18, 2020, the theme we have chosen is “Protecting Health and Autonomy in the 21st Century,” because at no time in modern history has it been more important for all of us to take a stand and do just that.

This year, the orchestrated actions by governments around the world to restrict or eliminate civil liberties in response to the emergence of a new coronavirus has been unprecedented, and has had profound effects on the global economy and on the physical, mental and emotional health of billions of people.1

By mid-September 2020, there were about 29 million cases of the new Severe Acute Respiratory Syndrome (SARS-CoV-2) reported worldwide with about 925,000 associated deaths.

The United States, the third most populated country in the world at 330 million people, had recorded over 7 million cases and 198,000 deaths, with an estimated 598 deaths per million people, which is a higher death rate per million people than Sweden,2 where health officials have refused to order masking or lock down the country and allowed the population to acquire natural herd immunity to the virus.3,4

Overall COVID-19 Mortality Is Less Than 1%

According to the World Health Organization, the overall infection mortality rate for the new SARS coronavirus causing COVID-19 is about 0.6%,5 although some scientists say it is lower,6 while others estimate it can be as high as 1 to 2% in some parts of the world.7

Compared to Ebola with a 50% mortality rate8 or smallpox that killed 30%,9 or tuberculosis that still is a deadly disease killing 20% to 70%,10 or diphtheria at 5% to 10%,11 or the 1918 influenza pandemic with a 2.5% mortality rate,12 COVID-19 is near the bottom of the infectious diseases mortality scale with a less than 1% mortality rate in most countries.

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Who Got the $33 Billion in Farm Subsidies for the US-China Trade-War and Coronavirus Payments? by Wolf Richter

As is often the case, government subsidies have ended up in the pockets of those who don’t need them. From Wolf Richter at wolfstreet.com:

Individual recipients don’t even have to work on a farm; people getting these payments can be “city slickers.”

Unlike food stamps and other welfare programs that are strictly controlled and limited by income, farm subsidies place few such obstacles on the folks that receive them. “Many recipients never have to set foot on the farm or ride in a tractor to get paid,” according to an analysis by EWG of Department of Agriculture records that it had obtained under the Freedom of Information Act.

The analysis covers the $33 billion spread across two farm subsidy programs: The Market Facilitation Program (MFP) created to offset the effects of the trade war against China, and the Coronavirus Food Assistance Program (CFAP).

EWG’s analysis found that the “largest and wealthiest U.S. farm businesses received the biggest share of that $33 billion in payments.” And in earlier analyses of the data, it revealed that “thousands of people who live in cities, and some who live on golf courses” have received MFP payments.

The Market Facilitation Program (MFP).

The purpose of the MFP is to compensate farmers for the effects of the US-China trade war during which China reduced its purchases of US agricultural commodities. Under this program, the US government paid farmers $23 billion from 2018 through June 30, 2020, not including crop insurance premium subsidies.

The administration set the maximum a person could receive under the MFP for 2018 at $125,000. But for 2019, this per-person limit was doubled to $250,000, which, according to EWG, “sent an extra $519 million to the largest farms.”

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“End School To Prison Pipeline” – New Kim Klacik Ad Highlights How Liberals Destroyed Baltimore, by Tyler Durden

Kim Klacik is a welcome breath of fresh air in politics. She’s put together a great video, embedded in the linked story. From Tyler Durden at zerohedge.com:

Readers may recall, in mid-August, we pointed out Kim Klacik, the GOP congressional candidate from Baltimore, is attempting to take late Elijah Cummings’ congressional seat in Maryland’s 7th congressional district.

However, there just one problem, she’s a Republican, nevertheless, a young black millennial, who has been embraced by President Trump and top Republicans.

For more color on Maryland’s 7th District, which covers the northern and eastern boundaries of Baltimore County, the majority of Howard County, and a decent chunk of eastern and western parts of Baltimore City, which have been dominated by Democrats for a little more than half a century.

Klacik was propelled into the spotlight in August when her campaign released a video of her walking the streets of Baltimore. She showed people “the real Baltimore,” outlining how decades of Democratic policies have imploded communities:

“Democrats don’t want you to see this. They’re scared that I’m exposing what life is like in Democrat-run cities. That’s why I’m running for Congress Because All Black Lives Matter Baltimore Matters And black people don’t have to vote Democrat.”

Two weeks later, in early September, Trump tweeted that he “fully endorsed” Klacik.

Now the Baltimore-based GOP Congressional candidate is out with another political ad bashing Baltimore liberals for destroying the city. She focused on Baltimore’s trash problems, dilapidated row houses, and the “black struggle of people in Baltimore.”

“I see a Baltimore that picks up trash,” Klacik said. “There are piles of garbage all around Baltimore. It makes life unsafe for our families. I’ll work with city leaders to get Baltimore Solid Waste Bureau the resources it needs to take out the trash.”

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China and the Washington Oscars, by Fred Reed

Perhaps China’s many American critics should learn more about that country, maybe even spend some time there. From Fred Reed at unz.com:

As the presidential debates approach, and our grotesque candidates prepare to compete for Best Actor, with their supporting casts of pollsters, advance men, media shills, gestures coaches, focus groups, and allied technicians of mendacity, Americans of broad historical illiteracy, which is most of them, hear endlessly of the evils of China. Whether the evils exist doesn’t matter. The electorate won’t know the difference. Still, it might be amusing to think about the matter. How bad (as Ivanka would put it) is the Middle Kingston?

Permit me a more sanguine view than those of our leftover Cold Warriors. Let us start with what Beijing has done for its people. We might also find enlightening a comparison of today’s China with today’s America.

I know what China was in 1978 when Deng took over: a literally starving behemoth, among the poorest countries on earth, with people eating grass. Forty-two years later it has lifted several hundreds of millions from poverty, and the remaining poverty would not be recognized as poverty by the slum dwellers of India. Perhaps I err, but this seems to me both astonishing and admirable. No other country, ever, has done such a thing.

Overage Cold War hawks and salesmen for the arms makers like to say that China is “totalitarian,” which sounds appropriately terrible without meaning anything specific. How many people have been in a genuinely totalitarian and Communist country? I was in the Soviet Union when it still was the Soviet Union, and it closely matched John Bolton’s onanistic fantasies: grim, poor, intimidated, no stores or consumer goods, empty streets with cars only for the government, people sullen and dispirited. As we flew out on Aeroflot, people spontaneously broke into applause as we passed the Russian frontier.

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BLM’s War on the Deplorables, by Mike Whitney

The people who rule us have done a terrible job on many fronts and need a diversion. From Mike Whitney at unz.com:

Let’s assume that Black Lives Matter is not a “social justice” movement, but a corporate-sponsored public relations vehicle that’s being used to advance the agenda of elites? Is that too much of a stretch?

And let’s say that the massive protests that erupted across the country were not random or spontaneous events as some people seem to think, but part of a broader strategy to control the headlines by shifting the dominant “narrative” to race. The death of George Floyd fits perfectly with this “broader strategy”, as the incident took place 6 months before the general election, which (conveniently) gave the Democrats enough time to mount an effective attack on Donald Trump using an issue on which they feel he is particularly vulnerable. (Race)

Was it all a coincidence?

Maybe or maybe not. But it’s certainly worth investigating, after all, we’ve just endured 3 and a half years of relentless fabrications connected to the Russiagate scam, so the idea that this latest headline-grabbing fiasco might be, well, fake, is certainly within the realm of possibility.

So, let’s see if we can figure out “why” wealthy elites and their giant charitable foundations would choose to dump millions of dollars into an organization that claims to be Marxist. Could be that….

  1. They are genuinely committed to social justice for black people?
  2. They think “racist” cops are the Number 1 problem facing black people today?
  3. They think the massive protests are raising consciousness which will have a transformative effect on the country?
  4. They need a flashy social justice organization (BLM) to divert attention from widening inequality, spiraling unemployment, ballooning poverty, shrinking growth, and the savage restructuring of the economy that is creating a permanent underclass forced to scrape by at food banks, homeless shelters and tent cities that are sprouting up across the country but which are religiously ignored by our prostitute media?

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Global Debt Is Exploding At A Shocking Rate, by Tyler Durden

There is no way this will end well. From Tyler Durden at zerohedge.com:

The primary reason why the global financial system is on the verge of daily collapse, and is only held together with monetary superglue and central bank prayers thanks to now constant intervention of central banks, is because of debt. And, as BofA’s Barnaby Martin succinctly puts it, much more debt is coming since “the legacy of the COVID shock is debt, debt and more debt.” In short: use even more debt to “fix” a debt probem.

So in this world of explosive credit expansion coupled with tumbling economic output where helicopter money has become the norm, central banks – and specifically the ECB – are scaling their QE policies to monetize and absorb much of this debt (relieving the pressure on private investors to buy bonds), more debt “hotspots” mean more vulnerabilities for the global economy.

We won’t preach about the consequences of this debt binge which has catastrophic consequences – we do enough of that already – but below we lay out some of the more stunning facts of global debt levels at the end of Q1 2020 as compiled by the BIS, courtesy of Martin:

  • Global debt/GDP surged to an all-time high in Q1 ’20, with overall debt for the non-financial sector now worth 252% of global GDP. This is up from 241% at the end of 2019, the biggest quarterly jump ever according to BIS data.

  • The chart also confirms that central bank inflation targets are higher, much higher than the “”official 2%: to erase this debt, central banks needs inflation to be in the 10%+ range. Anything below that would require debt defaults instead of inflation to wipe away the debt… and that is unacceptable.

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