Stop wondering why inflation remains elevated; I have the answer

Septembers are usually good for net federal revenue, but not this year

Never underestimate how direct injections of stimulus to the end user can ignite inflationary pressures. If these direct fiscal injections are not dished out judiciously, they can help to cause a loss of confidence in both the monetary system and governing authorities.

While deficit spending prior to covid was primarily directed in a fashion that helped to mitigate the adverse ramifications of such monetary and fiscal largesse, social spending subsequent to covid has not followed this route and has lost most of this restraint; it seems to be geared in a way that is antithetical to keeping price inflation subdued.

Unfortunately, for those who depend on a wage or do not possess income-generating assets, we observed how the covid stimulus  and its subsequent social largess caused general price inflation and raised asset prices. When social spending is not effectively sterilized and is handed out directly to the end user, the results can by catastrophic, at least for those below the 90th percentile of balance sheet wealth.

Since March 2020, much of the fiscal deficit spending was given directly to the recipients to spend in any way they deemed fit. The rest, as we say, is history.

Another $426 billion in direct money injections raises prices for all and degrades life for the bottom 90%

Despite the harsh lessons of the covid deficit stimulus, the Biden regime has continued to hand out money directly to the end user in a way that will only raise general price inflation for all. While those whose student loan debt was reduced will receive a direct benefit, their total benefit will be reduced by the amount of inflation these debt forgiveness programs cause. Those who do not receive any debt forgiveness will ultimately be left with shouldering most of the resulting economic burden via the price inflationary distortions that are caused by the resulting demand pull inflation from the debt forgiveness programs.

The deficit CBO estimates for 2022 is $341 billion larger than the shortfall estimated in its most recent baseline projections, which were issued in May 2022. Outlays and receipts alike are now estimated to be greater than CBO anticipated in May—outlays by $401 billion (or 7 percent) and receipts by $60 billion (or 1 percent).

The increase in outlays primarily stems from $426 billion in costs estimated and recorded by the Administration in September 2022 to reflect the long-term costs of certain forms of student debt relief, including forgiving portions of federal student loans for many borrowers. (Other federal spending, on net, was less than CBO projected in May.) The largest policy change—student debt forgiveness—was announced in August. In accordance with the Federal Credit Reform Act, the full multiyear costs of those actions are recorded up front on a present-value basis.

The only people who can remain ahead of these inflationary trends are those who own the income-generating assets

Good luck waiting for inflation to come down; the government and central banks seems to be doing whatever it takes to keep price growth elevated. With QE reversing, the disconnect between the Fed and US government is only confusing the markets.

So, if you are worried about a collapse, don’t. Debt forgiveness may be bad for those who don’t own the assets, but it is good for the markets and for those who own the assets. So, what about those who don’t own the assets? They don’t matter anyway. Just remember to let them know that Tuesday is Soylent Green day.

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26 thoughts on “Stop wondering why inflation remains elevated; I have the answer

    1. We can always tell when someone collapses from the clot shot. It happens so suddenly and there are no signs before it. It happens in an instant.

      It’s like there’s a lights off switch that is activated. I don’t see this type of stuff in strokes or heart attacks. Something else must be going on in addition to the clots. So many of these people just keel over and crack their skulls.

      My auto insurance is up about 40% in 2 years and I drive only a few thousand miles a year. Clean record. The auto insurance companies are dealing with a huge increase in serious and catastrophic accidents, and you and I have to bear the costs. We know what are causing these accidents. Imagine if this guy was driving a car on the highway.

    2. Half a million UK workers drop out of workforce, citing long-term illness

      LONDON, Nov 10 (Reuters) – The number of people who have dropped out of Britain’s job market since 2019 and who now cite a long-term illness or mental health problems has risen by half a million or about 25%, the Office for National Statistics (ONS) said.

      The increase in long-term sickness started in 2019, before the pandemic, before rising sharply by 363,000 between early 2020 and the three months to the end of August 2022 to reach 2.5 million, it said.

      The analysis adds to the Bank of England’s worries as it seeks to tame inflation, now at a 40-year high. The BoE is concerned that the number of people leaving Britain’s workforce will fuel inflationary pressures and the latest labour market data pointed to a record workforce exodus.

  1. As an Israelite, I am attracted to the notion of forming my own jurisdiction. I would live in a tent and tend to my own needs. I would convince other like-minded like people to join me in the second exodus.

    It would be a lot of work, but instead of coming to an existing country and trying to make it into my own, I would start a new country. I wouldn’t waste my time looking to make a piece of the pie. I would cook my own pie from scratch. I would only allow a certain few to join, but they would have to be like Christians. The Bible would be the primary textbook, and I would teach the children to not be like the Christians from the other countries. They would be trained to spot outsiders and enemies. They would be industrious and we would raise a Gideon army to fight and defend our ways of life.

    Unfortunately, in this world of Daniel’s iron and clay, there’s no place left to run. All four corners of the globe have been overrun by the synagogue of Satan and their open borders heathen they bring with them. If given the chance I would run away from all the NT-only laodicean Christians and go back to the entire Bible as a template for my proposed nation.

    There would be no usury, no digital tracking and tracing, no demoralizing and PC 501c3 pastors like Lawson, no cameras, government only to the extent that we would need to defend ourselves in unity as the nation, and the reason why is because we wouldn’t need them.

    1. I would be happy to join you in this nation.

      On a more practical note, perhaps you should look into the new financial revolution that actually is happening. The fact is, if you structure it the right way, the first step to this is to create your own currency and these new tools may make that very feasible.

      You have to go about it the right way though, and maintain some kind of link to the Beast system through it, through the collateralization, but shield your people from interaction with the Beast systems through it. It can be done, feasibly. The technology is here.

      So what I propose would be to have an asset-referenced token (in the words of MiCAR) which is collateralized on the asset side by IG corporate bonds of palatable companies (no Meta and others too closely SoS-aligned), and also the SME debt of your local constituents that can be issued. The token would float freely against fiat, but it will likely be relatively stable. Payment systems for your people are in place where this token can be used to transact locally. The token itself would be non-usurious since it cannot really form the basis of another layer of leverage unless you allow this in your community (which you will not). In principle, unless I am missing something, this is the foundational design to do what you want.

      What is different now from 10 years ago, is that the tech to do this, to set up the payment infra and all this, is soon going to be open source and as accessible and cheap to maintain as a WordPress site.

      We both know God is just, and the universe is, in a way, his perfectly balanced work of art. He would not give us no way out. Perhaps this is it.

    2. Afterthought, you could also throw real estate into the collateral pool and allow that token to be used to access/use said real estate, so it would be a utility token also in a way (also in the terminology of MiCAR).

      This would create a kind of natural demand for the token by the people who wanted to live in the community, thereby also supporting its value.

      All this is essentially unlevered and not usurious.

        1. Coming to the States. Being encouraged by the government, too. Stay clean! The people being are so careful. Their own government lies and shits all over them. These are people who work hard and get ahead are killed by the less “talented” who indulge in their schadenfreude.

          The housing price to income multiples in South Africa are the lowest in the world, and that’s because the talented people are leaving or are unwilling to continue investing there.

          I remember all that virtue signal crap in the mid-80s with apartheid. That stupid song, Sun City. The majority in SA got what they wanted…

  2. Great CPI numbers. Won’t bother posting the specifics. Overall printed at 0.4% vs. 0.6% consensus. Assets of all kinds love the numbers.

    Jobless claims up more than expected. Another good print for the markets.

    Dow futures up over 800 as I speak. 🔊

    1. We’re finally seeing the base year effect kick in. Things will look even better over the next 8 months, because the base year inflation keeps rising.

    2. Too many were on one side of the boat which isn’t good, however the overall vibe earlier this week wasn’t rosey, esecially yesterday. Last months CPI report was terrible, so really how did things change in just 30 days to make it all better? Just a reason to infuse money sitting on the sidelines into the market?

      During last month’s CPI report, Powell said the central bank has ways to go in taming inflation. So the big picture hasn’t changed from last month, just the sentiment. Unless we are being lied to, and it’s a prewritten script.

      So the upcoming catalysts good or bad would be: FOMC Dec rate hike(50bps most likely), next month’s CPI report, the Ukraine wargame ends, nuke hoax, China/Taiwan friction, pot decriminalization. What else??

      Speaking of pre written scripts, the media is already putting out articles of Zelensky’s rag tag army pushing back the mighty Moscow forces. Pfft ya sure! lol Perfect time to end that hoax.

  3. Debt slaves will always be debt slaves. It’s in the DNA. If you pay off someone’s debts, within a short time that person will be back in the same amount of debt.

    After student loan forgiveness, 73% of borrowers plan to spend more on travel and dining out

    That extra cash will be a much needed lifeline to cover other bills or necessary expenses for many. But some borrowers plan to spend the money more freely.

    In fact, 73% of anticipated recipients say they expect to spend their debt forgiveness on non-essential items, including travel, dining out and new tech, according to a recent survey from

    That discretionary spending won’t come guilt-free though. The same percentage of recipients — 73% — say using debt forgiveness funds on non-essentials isn’t the right thing to do.

  4. The bogeyman “collapse,” like “crisis,” is never defined. It is Weather Channel hype, where 2 inches of rain could become a flood event. Collapse is Germany November 1918, and it takes betrayal by insiders whom the people trusted. In that sense, yes, the U.S. could collapse. But this cow yet has milk to steal; I don’t think the regime, whoever comprises it, is ready to “collapse” the U.S. Not until all the working class suckers are tapped out and their credit scores are low beyond recovery.

  5. This is timely – my teachers pension plan is going to adjust for inflation, and I’ll be receiving more money – so yes, I see this as inflationary as well. I was more concerned about being bumped up in the next tax bracket but thankfully I slip just under once again. If I had retired when I was supposed to in a few years with a higher pension- there would be this inflationary increase, only to give it back in taxes. So you really just get a handful of nothing. What a racket.

  6. Another sign that the country is a corrupt multicultural penal colony; when I was young, elections were determined in hours. Now, with all these socially re-engineered plebes with their various demographics running the show, it takes days and weeks to wade through the mess to “determine” who received the most votes.

    When I read articles about how 250k votes were thrown out in PA, I say to the reader, welcome to your multicultural kingdom! Another sign that all the breeds can live together in peace and harmony.

    I have one piece of advice; vote fraud and multiculturalism are not independent of one another. Skip voting and be the landlord. It’s the only way to stay ahead of the game.

    The US has become so spiritually and culturally corrupt, that inflation is the only option as all the breeds duke it out for their piece of the pie. It’s a multicultural kennel and we now get out mandatory injections like dogs.

    The media treat us like dogs, the church pastors say we deserve our punishment like dogs, the government treats us like dogs, too. The best part; the animals who live and work in the US prefer it that way. Many come from third world cesspools, and they’re not happy until they turn America into one, so they can feel right at home.

    What I find amazing is how so many refuse to figure this out and don’t do what It takes to get ahead financially: especially, the white folk whose generations made this place. Just buy your properties in LLCs, so the third world masses don’t burn down your houses like in South Africa.

      1. Most investments and concepts are now a farce. End-time Babylon is one big multicultural farce.

        Knowing that it’s a farce is a huge relief to us as we can confidently navigate through this last days bullshit that is promoted by the laodicean church.

        In terms of investments, there’s one important reason why I tend to stay away from cryptocurrencies and pot stocks. As decrepit as humanity is, the worst of the worst is attracted to those two sectors. We already know the whole world is one big lie, but imagine investing based on nothing but liars who lie all day long. That’s all I see when I see cryptocurrencies and pot stocks.

        I’m not even here to tell you that cryptos are terrible investment. I’m here to tell you that terrible people are attracted to that investment and all they do is lie and cheat.

          1. Reader asked me about Bitcoin and when to invest. I just purchased a little last night. Of course, it’s only a small amount and I primarily stick to bitcoin because of what we all talked about in the past. Of course, there are better options out there with better architecture and such, but BTC is the granddaddy and has the official sponsorship on the street and with the synagogue.

            As for the low? I suspect that much of the downside is already priced in on a trading basis.

            The interesting feature of the crypto market is that the trading cycle seems to be compressed versus other types of “assets”.

            Over the years, many have come to me and told me that cryptos can be yielding assets, and I just don’t see it. The only people who will tell you these types of things are the types of people who run FTX.

            1. The reader asked me about COIN as well. Though I think Coinbase here is relatively reasonably priced, the weekly chart looks terrible and if I were just looking at the chart I would say that another ATL is coming.

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