Deficit spending accelerates; The average person is slowly getting wiped out

Asset pricing post-covid; Federal deficit spending is now out of control

Seeing how commodities spike during wars – maybe that’s part of the logic behind digital Bill Gates tying up tangible assets in farmland. Looks like Kondratieff wave cycle is calling for a sustained run on Commods — which would coincide with ww3… and supportive of your call on SFRs and cash flowing assets


The enemy has opened the barn doors, the horse has been let loose, and there is nobody willing to put up a fight. Those who don’t own the income generating assets will continue to be steamrolled into poverty. There is nobody coming to our rescue. We are on our own now in this functional financial dictatorship.

Click chart to enlarge

Farmland and SFRs; there are still good deals out there. The structural replacement cost on my insurance policy of my last SFR purchase was greater than what I paid for the property. In essence, I received the built-out lot and mountain views for no extra charge. Replacement costs on my policies are up about 50% in the past 6-7 years, and that’s just for the structure.

Moreover, home builders are having an increasingly difficult time procuring materials at a reasonable price, while labor costs continue to rise and workers are becoming more scarce at current wage levels. The concept of affordable housing is a myth.

Can the real 10-year UST yield remain firmly negative? This outcome will be the single largest determinant for asset pricing in the future

As long as the govt continues spending like they have, there will be no let up. Moreover, the central banks with their QE programs have been able to keep real bond yields in the negative for a sustained period of time. While this facilitates government largesse, it all elevates asset prices.

The smart people are looking at what we are observing and are holding and adding to their assets. These savvy investors are looking at the DC kayfabe wrestling match between the Democrats and Republicans as a golden opportunity to pad to their net worth and increase asset cash flows.

Tyranny has never been so profitable, which is why our adversary is having so much success.

Related Posts

60 thoughts on “Deficit spending accelerates; The average person is slowly getting wiped out

  1. 90% of Americans are in a Zugzwang position. No matter the choices they make, they are in a worse off position than previously. Done by design as there is now no resistance from the multicultural crowds. Each decision will render them more likely to accept the mark. This is even true for many Christians who are aware of the apocalypse scenario.

    According to Wikipedia, Zugzwang (German for “compulsion to move”) is a situation found in chess and other turn-based games wherein one player is put at a disadvantage because of their obligation to make a move; a player is said to be “in zugzwang” when any legal move will worsen their position.

    Although the term is used less precisely in games such as chess, it is used specifically in combinatorial game theory to denote a move that directly changes the outcome of the game from a win to a loss. Putting the opponent in zugzwang is a common way to help the superior side win a game, and in some cases it is necessary in order to make the win possible.

    1. Zugzwang in action; take the MRNA injection to save your livelihood and income, get more sick. Eventually the injected will no longer be able to work. Don’t take the injection and work for somebody, they will be out of a job and will be broke.

      In the short intermediate term, the only suggestion I give to the people is to not have to work for other people for your money.

      Eventually even people like me will be in Zugzwang. But I hope to make it a few further years down the road and to shorten my time span between my personal Zugzwang and my departure from this planet and dimension.

  2. The new phrase “no landing” is being dispensed out of the DoD Pentagon and McLean Virginia to the mainstream business outlets as the new narrative. Instead of “hard landing” or “soft landing” we now have “no landing”. This is an environment that will be accompanied with consistently elevated inflation and positive economic growth. No landing.

    You’re on your own as the average person gets wiped out $10 at a time.

    This can only take place in a multicultural Babylonian environment. In the end time regime, in which the people are fat, satisfied, and in need of nothing, they tend to have sex and partner up with whomever their lusts desire. Staying with like kind people was a survival mechanism, which not only help to ensure developing a hardened societal resistance against the adversaries, both foreign and domestic, but ensured a better rate of survival, with a higher survival rate within its own peoples.

    This is why we’re seeing people partner up with whomever they please, and having all sorts of different children. They satisfy their basic desires and lusts, because they don’t have need of anything for survival except a tank of gas and a credit balance on their debit card. They have sex with whomever they desire, and it’s definitely based on some commercial or movie that they saw satisfies they’re lusts.

    God rejects these people. God rejects multiculturalism as it’s burped up from hell and a product of Satan, the devil. The devil has made everybody soft and interdependent and needy. They’re perfectly bred to accept the mark.

    1. Amen to that. Satan uses sex and lust to manipulate humanity to his end as people focus on satisfying their lusts at the expense of their spiritual focus on God. Lust also causes divisiveness and war as people fight with each other to satisfy their earthly lustful desires. Multiculturalism is also a part of Satan’s plan to keep humanity divided against itself so they won’t notice Satan’s agenda . Multicultural societies never work together and in fact fight with each other.
      Only homogenous societies work well as like kind people stick together and have common outlooks.

    2. Whats you thoughts on the Bank of Canada rate going out 12 and 24 months? It follows the fed funds rate. Are we going to see a pause than another leg up perhaps or a move back down?

      1. Last Tuesday, Canadian inflation numbers came in slightly lower than expected for January, which bolsters the probability the Bank of Canada takes less harsh action and remains on the sidelines, while the Fed is concerned regarding the higher than expected PCE data just released. In those numbers the inflationary pressures seem to have ticked back up for January.

        I suspect that demand for mortgages will be higher in Canada versus the US, while upward rental price pressures continue to mount in both countries. This, of course, will lend to the support of housing prices in both countries. Regardless, the overall inflation at 5.9% in Canada is still much higher than most people want to see. The slightly lower inflationary pressures have resulted in the CAD being under pressure last week versus the USD just ever so slightly.

        It’s very difficult to anticipate 12 to 24 months from now as the inflation rate in both countries has remained stubbornly higher than expected. We are now out 3 years from the beginning of covid and we have inflation staying at around 6% in both countries. I have been looking at the trends and observing what the governments in both countries have been doing. I look at immigration policies and social spending and I marvel at the ability of both central banks to maintain real bond yields in negative territory. As a result, I suspect inflation is going to remain much more elevated than the authorities anticipate. This means that short-term interest rates are going to remain in this range, and even higher, unless inflationary numbers start to subside. Given the latest round of price data coming out of the United States last week, I’m worried that we may see price inflation plateau rather than continue dropping.

        1. Thank you I’ve been sitting on the fence regarding locking in a new mortgage. I may just sit a little longer.

  3. The numbers came out this morning and they look pretty bad. Inflation higher than expected, personal income lower than expected, and the people spending themselves into bankruptcy $10 at a time. We’re on our own.

    Core PCE Price Index (MoM) (Jan)
    Act: 0.6% Cons: 0.4% Prev: 0.4%

    Core PCE Price Index (YoY) (Jan)
    Act: 4.7% Cons: 4.3% Prev: 4.6%

    PCE Price index (YoY) (Jan)
    Act: 5.4% Cons: 5.0% Prev: 5.3%

    PCE price index (MoM) (Jan)
    Act: 0.6% Cons: 0.5% Prev: 0.2%

    Personal Income (MoM) (Jan)
    Act: 0.6% Cons: 1.0% Prev: 0.3%

    Personal Spending (MoM) (Jan)
    Act: 1.8% Cons: 1.3% Prev: -0.1%

    Real Personal Consumption (MoM) (Jan)
    Act: 1.1% Cons: Prev: -0.3%

  4. CJ I talked to more people who warned me to pull our money out of CD’s and the bank. Why else would the powers that be have instituted bail-in legislation? I’m stuck in indecision not sure what to do.

    If I pull our money out, and the dollar collapses, it will be worthless, correct? If I buy a new car they could outlaw gas vehicles. We traveled and saw electric car charging stations at Walmart!

    People suggested I buy silver or gold but FDR forced Americans to turn in their gold for pennies.

    Do you have any thoughts on this bail-in legislation and if people should pull their money out of CD’s? I thought of taking our money out of CD’s and buying a house to rent as a source of income instead of relying on interest from CD’s. I’m just unsure.

  5. Acts 17:7

    They are all guilty of treason against Caesar, for they profess allegiance to another king, named Jesus.

    — Here’s another look at Ceaser’s deceptive practices. The God of Abraham, Issac, and Jacob says the man is the head and ruler of his own household. How does that work in modern society where in the beginning of a marriage the man is bending the knee to his future wife? The indoctrination of a man bending his knee to ask a woman to marry him came from Ceaser. A man should only bend the knee for King Jesus, and God the Father.

    Another thing Ceaser likes to do is have men dress like women on the big screen. Usually under the guise of comedy. But the God of Abraham says it’s an abomination for a man to dress like a woman; and vice versa.

    Most of this world worships Ceaser – either knowingly or un-knowingly. Whatever Ceaser says – they follow without critical thinking or questioning. The Covid vaccine rates paints the picture perfectly well. If Ceaser tells them in the future to bring forth any Christian that refuses the mark; so they can be robbed, beaten, imprisoned, or beheaded – they’ll obey Ceaser. That’s why I don’t want anything to do with most of the world; nor participate in this world’s human traditions, or holidays.

    2 Timothy 3:1-5

    But mark this: There will be terrible times in the last days. 2 People will be lovers of themselves, lovers of money, boastful, proud, abusive, disobedient to their parents, ungrateful, unholy, 3 without love, unforgiving, slanderous, without self-control, brutal, not lovers of the good, 4 treacherous, rash, conceited, lovers of pleasure rather than lovers of God— 5 having a form of godliness but denying its power. Have nothing to do with such people.

  6. Lordy Lord, look what’s happened to the MSM and ALT media since 1996 when the Clinton regime loosened up the restrictions on media ownership concentration. Look at all that’s happened and look at how the alt media has degraded into a reactionary mechanism of multicultural garbage. Each step carried out by the synagogue of Satan has brought us to this denouement. There is no turning back and even what’s left of the Christian church is dead from poison.

    You’re on your own now.

    1. I guess we are now foreigners in our God promised land like Abraham, Isaac and Jacob were in Canaan. I feel a complete foreigner where I live and I am a local, my family has been living here at least for five centuries according to existing church records.

      It really does not matter, this place too is filling up with people from everywhere.

      1. I read Hebrews 11 at my dad’s eulogy. How prescient, indeed. My home is no longer here. I’m just a pilgrim and a stranger in the land of my fathers. I’m just a landlord to the heathen and count down the days to my departure. 🛫

  7. $65 oil still in the cards over the next few weeks. Should help support stocks while energy still making money at those levels.

  8. Revised real GDP lower than previous as price levels ran hotter. Initial and continuing jobless claims both lower than expected. Not really all that good for stocks, but they are holding up this morning.

    Core PCE Prices (Q4)
    Act: 4.30% Cons: 3.90% Prev: 4.70%

    GDP (QoQ) (Q4)
    Act: 2.7% Cons: 2.9% Prev: 3.2%

    GDP Price Index (QoQ) (Q4)
    Act: 3.9% Cons: 3.5% Prev: 4.4%

    GDP Sales (Q4)
    Act: 1.2% Cons: Prev: 4.5%

    Initial Jobless Claims
    Act: 192K Cons: 200K Prev: 195K

    Jobless Claims 4-Week Avg.
    Act: 191.25K Cons: Prev: 189.75K

    PCE Prices (Q4)
    Act: 3.7% Cons: Prev: 4.3%

    Real Consumer Spending (Q4)
    Act: 1.4% Cons: Prev: 2.3%

  9. More DoD Pentagon propaganda to keep the 83% of American adults who were injected guessing as to why they are getting sick. The article also blames them for their reckless styles.

    A cardiologist warns more people in their 20s and 30s are showing up with heart attacks and heart disease

    •Jim Liu, a cardiologist at Ohio State University, explains why heart disease is on the rise among young people.
    •Several studies have indicated young people are dying from heart attacks at higher rates than in the past.
    •Sedentary lifestyles, vaping, poor sleep, and chronic health conditions might be behind the trend.

    One cause could be the recent rise in obesity, said Liu. The prevalence of obesity rose from 3% pre-pandemic to 4.4% between 2020 to 2021, per federal data, as more people increased their alcohol intake. Young people are already prone to more sedentary lifestyles, and Liu said the pandemic may have led to even lower rates of exercise.

    “Because of the pandemic, people may be a little bit less active, maybe eating worse,” Liu said. “So that could possibly translate into worsened blood pressure, increased weight, and long-term healthcare problems, specifically cardiovascular.”

    1. That article is an insult to people with normal intelligence . If that were true it would be happening gradually over time not abruptly from a starting point.

  10. Those on the Eastern seaboard need to not get rained upon. Phosgene and other dioxins will fall on the just and the unjust alike. Don’t let your pets go out in the rain ⛈️⛈️🌧️🌧️

    1. What is Phosgene dioxins and where is it coming from? How can one escape it? I’m having a hard enough time avoiding chemtrails.

      1. That’s all from the DoD Pentagon chemical weapons operation in East Palestine OH

        Seriously, I am working on two cash outs and three property purchases out in rural Virginia. I am moving to a more sparsely populated homogeneous area, and we’ll count down the days till my departure. 🛫

  11. It’s been estimated that only 17% of American adults can truly claim to be uninjected. 83% of American adults received at least one injection.

    There have been longer term independent tests that have concluded that the mRNA from the injections stay in the body forever, permanently instructing human cells to produce spike proteins. Of course, these reprogrammed cells are identified by the immune system as a foreigner and thus the body’s immune cells consumes its host.

    Organ failure? Heart disorders? Blood clots? Strokes? Nerve disorders and diseases? The spike and resulting auto immune response results in hundreds of different conditions.

    Those who did not get injected are truly rare.

    At least 83% of Americans will take the mark.

      1. The jab most definitely isn’t the mark. The mark comes after God’s two witnesses are killed and there will rise a leader that will rule all the nations. In order to operate in his dictatorship – you have to pledge your allegiance to this person – mark of the beast. Otherwise, you will be literally be hunted and beheaded/imprisoned for refusing it. The covid vaccine didn’t meet those requirements at all, but I’m sure it was a good little test with lots of great data for Ceaser to devour into.

  12. Dow Jones Commodity index looking to fall through support. It’s putting in a large descending triangle on the weekly and look precarious overnight to take out 1,000.

    Nat gas is much cheaper now than expected from last summer. Oil testing the lower end of its ongoing trading range.

  13. I saw this presentation last week from John Titus, I thought I would ask your opinion on the case he makes and the evidence he puts forth.

    I can’t see that he is missing anything obvious, he addressed the ~$3T in reserves at the FED as assets in a question in the comments and says the banks are toast anyway.

    1. Looks like some kind of warning.

      February 23, 2023

      Agencies issue joint statement on liquidity risks resulting from crypto-asset market vulnerabilities
      Board of Governors of the Federal Reserve System
      Federal Deposit Insurance Corporation
      Office of the Comptroller of the Currency
      For release at 10:00 a.m. EST,create%20new%20risk%20management%20principles.

  14. Holy moly. Alex Jones spreading antichrist poison. He looks like he’s about to explode. As the grandad of the controlled opposition, he has single-handedly led the way for the Patriots to march to perdition.

    It is clear why the synagogue wanted William Cooper dead. Cooper spotted Jones as the charlatan stooge he was back in the late 90s-2000.

    Jones is the Obama of the Patriot movement.

    1. He and Mike Adams tag teaming to spread collapse fear-mongering and multiculturalism wrapped in an American flag.

    2. Back in 2010 Jones got angry at a caller and said “This is not….a Christian Radio Show”. Clicked off his show right then and never looked back. I knew up to that time something about him was not right. Bingo.

    3. I was no fan of Cooper, but he certainly had Alex Jones nailed down for controlled opposition before anyone else (that I know). And I could see them assassinating him to keep him quiet about it.

      1. Cooper had his issues, but imagine if he were alive. The whole patriot dialog would have taken another direction. He’d be turning 80 in May. An older guy would have been better, and Cooper was charismatic enough to make a difference.

        Instead, we had a young stooge in Jones take over as the “tip of the spear,” as Jones arrogantly refer to himself. I recall the many times Jones waxed nostalgia regarding his family involvement in intelligence and Freemasonry.

        Where there’s the stink there’s always the pile of bullshit. Where there’s the symptoms, there’s the cause. If an opposition leader causes more harm for the opposition than good, he’s controlled and a Judas goat.

      2. TF, I think Cooper was a fabrication. I read the first 50 pp. of Ride A Pale Horse and threw it away. His lineage didn’t hold together. The story of his father in WW II and thereafter. The story was meant to give him cred. I think his book was written by regime security.

        1. I don’t see that at all. I listened to 140-150 hours of his shortwave shows from the 90s and whether or not he was controlled is up for debate, but he was not a fabrication. His words are much different than the garbage that is put out on most alt-media outlets today. It’s virtually unrecognizable with the crap that the Patriots embrace now.

          Here’s a podcast of a shortwave show from the 90s that I just listened to, and he discusses his book, Behold a Pale Horse. This is an interesting show, still very timely and germane, and there is no way I can call the guy a fabrication. This show is from at least 23-24 years ago, so the mind has a way of reinventing the past.

          He published that book when he was 47.

        1. I grew up Catholic and was into the Catholic thing. I even went to Fordham. I was an unwashed man and went to a Jesuit university.

  15. My experience with Arrived Homes funding site is confirmation of CJ Evans advice that housing prices and rents will only go UP.
    I got email notices at noon time of houses available for funding. By 12:45 PM when I saw the email they were already fully funded. You have to jump very quickly to buy income producing assets. Be very thankful if you already own your residence.

  16. We’re on our own. Even the mRNA-injected pre-tribbers are looking for a personal bailout from Jesus. He’s not coming, at least when you expect him. You’re stuck down here with the multicultural sodomites.

    Nobody’s coming to bail us out. This is what happens when we think everyone is the same and can live together like in the John Lennon song Imagine. This is what happens when people don’t listen to the admonitions of the Bible. I especially include today’s Christian. This may sound antithetical with Christianity, but I really have no sympathy for most people. They brought this on themselves. However if you read the Bible, God rejects the stupid people, and he has rejected most of the people living here on this planet today.

    By the end of this decade, most people will be bankrupt and it will be $10 at a time. Indeed, the people won’t own anything and they’ll be happy, or relieved that government finally intervened and provided an answer.

    Just take the mark and hear the whispers in your mind that will continually remind you to despise God and love your leader. Even Winston learned to love big brother and most people who don’t like big brother now will love big brother by the end of the decade.

    ‘I’m going bankrupt $10 at a time.’ Weary shopper tired of being gouged by businesses

    1. God only helps those who turn to him and take actions to obey his guidance.
      In short, God helps those who help themselves. Since the Covid Vaccine bullying by people around me, I have lost my faith and lost my patience with most of humanity.
      Yes, I agree that most people deserve the fate they get. All you can do is pray that people turn to God and listen to him however there won’t be many. Any saved soul is a gain for God and his followers.

      1. I am there with you too. Since the Covid Vaccine pushing I lost a lot of faith and confidence in many people around me, even family members I used to love. Then you got all these aliens coming wave after wave and nobody really utters a word of complain. It really dissociates me from the society I am living in. When I go to town I try not to speak to anybody I “used to know”, if I have to, I try to act the part and fit in, but I try not to speak too much and leave.

        What is the point of living or treating with any people if no one of them is going to move a finger or utter a word to defend you from predators, when they come?…

        Last week I was busy and I went late to put the chickens inside and a fox came and got a free meal of one of them. My dogs usually are not allowed out when I am not around so they could not do anything about but barking, but the next day I made the effort to go at dust and freed the dogs, because I knew the same fox was there waiting for his next meal.

        Was there the fox?…

        Yes, of course he was, hidden in the bushes on one of the sides of the shed. My dogs sensed him in some few seconds and off they went straight away towards him and he was off my place quite quickly. They pursued him until he left, making it very clear what was gonna happen if they could grab him.

        He has not come back since then. They scared the hell of him. Now that he has a better knowledge about my dogs he will probably try to the get his chickens in some easier place.

        We are not that lucky. We haven’t got any good herders neither any dogs left, they are all gone, one by one, and instead they put us other class of leaders that are wolves in sheep`s clothes. And you know, beasts are hungry creatures driven by their passions and lower instincts, they will eat or kill any sheep with not any remorse, nor any second thoughts about if is right or wrong.

        1. There’s nobody left. Even the churches are now dead. Even the few Bible reading Christians stand down out of fear of being labeled racist or worse.

          We’re on our own. I drive my car so infrequently, because I make a concerted effort to avoid people whenever necessary, that I have to jump start my battery. I really despise looking at people now. It’s like the movie The invasion of the body snatchers. We are the last ones to have fallen asleep. I would never even contemplate going to any of the churches in my area. They have been fully converted to the objectives of the New World Order.

    2. Exactly what Ceaser wants. For even the “Christian Patriots” to have to be reliant on Ceaser to financially survive. Who knows how many millions the patriot movement has been fleeced by scare tactics from places like zero hedge.

      1. Do you have a list of suspected controlled opposition? I was trying to find out so I wouldn’t listen to them. I learned the Frontline doctors were, Mike Adams, Pastor Chuck Baldwin, and other Pastors.

        1. Ye shall know them by their fruits.

          I personally don’t spend too much of my time trying to figure out if someone is controlled. Anyone with enough insight and intuition can figure it out by listening to what someone says and compare it to the objectives of the New World Order. I also look at their lives and how they live them. Anyone who does recognize the Bible is pretty much off my radar screen.

          With regards to Alex jones, to me at least, it is a fairly straightforward proposition to determine that he is a Judas goat to the core. I think he dupes a lot of young people who don’t have a longer-term perspective, or suffer from myopia, with his partisanized red herrings that he offers.

          You and I know the true adversary, but AJ never refers to it properly. He always points to the strawmen. This is why he’ll always be in business and will always get the MSM exposure. He’s controlled opposition and he’s The NWO’s Golden child for the Patriot movement.

          The one thing that William Cooper had over AJ was that he more properly identified the adversary. However even he was controlled, because he failed to address certain elephants in the room. I don’t really know anything about Cooper’s personal life, but he did seem like a family man. We all know about AJ’s life.

    3. My sentiments exactly. We are and have been a Captured Operation. Only a matter of Time before America completely falls. We are witnessing now in real time.

  17. Wall Street has purchased hundreds of thousands single-family homes since the Great Recession. Here’s what that means for rental prices

    •Corporations backed by private equity groups like Blackstone and Pretium Partners bought tens of thousand of homes across the U.S. Sun Belt.
    •Detached house prices have increased more quickly in key Sun Belt states than the national average.
    •Institutional investors do not yet control large market share in housing, but analysts writing at MetLife Management suggest they could by 2030.

  18. The Inflation Reduction Act somehow raises inflation… All the Western nations are spending deficit money to reduce inflation by shifting to green energy, and we as taxpayers foot the bill, whether via taxes or inflation. The Democrats version of the Patriot Act; there was nothing patriotic about the Patriot Act.

    Clean Energy Workers See Spike In Recruiter Interest

    By Haley Zaremba – Feb 21, 2023, 3:00 PM CST

    •Policymakers have given the green energy transition a major cash injection.
    •The surge in clean energy spending has fueled a boom in demand for clean energy workers.
    •78% of clean energy workers surveyed say they’ve been headhunted at least once in the past year.

    Green energy is having a banner year. In the European Union, policymakers have effectively “turbocharged the green transition” in response to the growing threat of an all-out energy crisis due to the Russian war in Ukraine and its associated sanctions. In the United States, the Inflation Reduction Act, which represents the largest single step that Congress has ever taken to address climate change, is just beginning to create a major clean energy gold rush thanks to billions in incentives. Meanwhile, China is spending more on clean energy innovation and expansion than the United States and Europe put together.

  19. Good thing the remnant cares not a jot about worldly wealth and keep our minds and hearts occupied with the great coming of God … while others gnash their teeth

  20. Just when I think we have it hard… Off topic, but look at the fallout from an untimely death in 1976. Here’s an example of what drinking and driving can do to all those affected by the circumstances.

    •A 22-year old was killed when his car most likely ran off the road and into a river. Most likely from drinking and driving. His body remains were recovered in 2021.

    •Both his parents were devastated and died before the mystery was solved.

    •An innocent man was pinned for a murder by an unreliable snitch. It turns out that a murder never took place.

    Auburn University student who vanished in 1976 found in car at the bottom of a creek, investigators confirm

    1. I would not encourage anyone to go clubbing, not even drinking heavily, neither driving or operating any heavy machinery drunk. These behaviors are too dangerous.

      I see not clubbing in the Bible but there are many Satanic induces films and TV series that encourage that. Worst offender is the both sexes drinking and drugging all together. Drug and alcohol abuse are behind the weakness of the flesh and this system is precisely guided to exploit these. So any Christian should not in any way drink with unfaithful strangers in any party full of your desired sex bombs of the opposite sex as pheromones and a weakened mental state can play against your best judgment an if you are young, inexperienced an a bit naive, you may end up in many problems.

      I know lot of divorcees my age that married like that, just another plague.

      1. I know is off topic but I will continue…

        Some of my childhood friends, the two leading guys in our band of five, got some more money from the parents than the rest of us, so they were the leaders of the “gang”. They were quite fun to be around when we were young so I really enjoyed their company until I was a teenager. They were too, really naughty boys, way naughtier than the rest of us.

        Then they started clubbing, doing drugs, you know, whole weekends away from home doing lots of miles by car to do raves and disco tours all around Spain and… lots of sex with… girls.

        Of course, we parted.

        After more than twenty years I spoke with both of them in some one or another occasion. Their parents are from this place, so sometimes they come to visit.

        What did I found?…

        Completely changed persons and personalities, could not recognize any of them as they used to be.

        Then later on in the Internet I read about how the abuse of party drugs: amphetamine, ecstasy, cocaine, poppers… fries the cognitive parts of the mind, so this people really got severe and lasting, irreversible changes of personalities.

        In this country many with some more money and “class” than the rest have done this. Ibiza is an international clubbing venue and Spain is a well known country for the “fiesta”.

        What is not as well known is the afterwards after the “fiesta”. My childhood friends, spending the extra money their parents gave them are just another fallen unfaithful, rotten, Jesus Christ denying, spiritless fruits the SoS is specialized in exploiting.

        Do they deserve it?

        Yes they do. We should not have any pity on them. We have not abandon them nor God has abandon them, as they have done it, themselves. The SoS is just there for the spoils.

        1. It’s the outcome of Ceaser’s indoctrination the moment we are kids. Avoid clubbing. Avoid college unless it’s for a serious degree. College, for most people, becomes Ceaser’s mental institution for becoming woke. I feel like it’s what most kids get out of it these days. Someone who is woke wants nothing to do with our God, or repentance of sin. They believe in trans and homosexuality; but I guess anything goes if they’ve been indoctrinated that we came from monkeys, and earth has been here for billions of years.

  21. Home Depot HD getting squeezed this morning. Although sales met estimates for this quarter, considering the rate of inflation, that doesn’t look too good. Guidance also disappointed. I know first hand how stores like Home Depot and Lowe’s are having a tough time keeping stock on the shelves. A lot of missing sku’s. Inflation is also a big problem for these big box retailers. And they essentially control the market sector.

    Home Depot says it’s going to add $1 billion dollars for employee pay.

    Nonetheless, HD announced they were increasing their dividend by 10% and will now yield close to 3%, based on the pre-market price.

    Overall, HD’s earnings were not good. I suspect that HD is going to try to attempt another round of price increases throughout their stores.

    Even WMT getting beat up today and the guidance disappoints.

  22. The Fed is doing everything it can to increase the deficit (and therefore increase future money supply growth as well as inflation.)

    The higher interest expense for the US government means it needs to continually borrow more money to make up for budgetary shortfalls. This will continue as long as the deficit persists. The debt burden will compound. More money will need to be borrowed into existence.

    Another problem is the Fed’s rebate has turned into an expense. The Fed used to return 60 billion in interest to the treasury. Now, the Fed is billing the treasury for 40 billion, since it is sending roughly 100 billion a year to banks via reverse repos.

    Goods and services inflation won’t go away since those prices are centrally controlled by the SoS. Housing prices have risen despite rate hikes and will continue to rise. The higher government spending produced by the higher interest rates is an inflationary boon to home prices. Rent will continue to skyrocket, resulting in more investors buying up homes.

    All by design.

    1. You bring up something that I think about. I wonder if at some point in the future the Fed may curtail the IOER reverse repo mechanism. The Bloomberg article I posted earlier regarding the ECB and Bundesbank mentioned how the ECB purchased about 5 trillion euros of low yielding sovereign bonds for COVID only to find much of that cash money parked back at the ECB overnight window earning higher yields.

      The IOER overnight window was a more formal construct of the Fed designed to be a way to handle all the cash generation caused by the Federal government borrowing in a QE world, since the government was no longer constrained by borrowing limits.

      Naturally, all that cash in the domestic economy would have caused inflation to spike, And the two+ trillion parked there keeps inflation from being even worse, but at some point the Fed will either have to diminish its use or the UST will have to reimburse the Fed on an ongoing basis.

    2. The weather too is getting very erratic.

      We are not that far away for poor harvests and hunger. I know it because of my location that it is like a canary in the coal mine.

      Western Europe is divided in between the Atlantic and Mediterranean climates. As I said many times I live in an urban town located in a small, narrow valley to the Atlantic. The special thing about my valley is that to the south it ends straight up in Mediterranean Spain at a very short distance of 25 miles. So I live in a short, narrow valley to the Atlantic on the fringes of the Mediterranean.

      And what the heck?… Why it matters?…

      I matters because being in a extreme narrow but open place to two opposite climates I am in a privileged spot to observe first the intensifying anomalies of the Mean Sea Level Pressure of the westerlies and their effect on the seasons and plant growth.

      And these anomalies are already affecting a lot of plants here.

      During the last years we got a plague in the Monterrey pines that have been exploited here successfully for more than a hundred years everywhere and they all needed to go off, there are hardly some left, debarked, defoliated or fallen.

      The real culprit of the collapse is the unusual and erratic weather with very very very late springs, short, hot and dry summers, no autumn rains nor even cool autumn temperatures and unusual winters with not frosts or snows helping to cleanse the soil from pathogens. This has diminished the growing possibilities of many crops, introducing diseases and pestilences plenty I have never seen or heard of.

      And this trend, that is going on here for years, is intensifying.

  23. German Economy May Shrink Slightly This Year, Bundesbank Says

    (Bloomberg) — Germany’s economy may shrink slightly in 2023 as companies and households start the year on a weak footing, according to the Bundesbank.

    Even as the energy crisis and manufacturing bottlenecks ease, exports are subdued by softer global demand, inflation is weighing on consumption and momentum in the construction sector is cooling, the central bank said in its monthly report.

    The economy may still fare “a little better” compared with the Bundesbank’s December prediction for a 0.5% contraction this year. Output already slipped 0.2% in the final quarter of last year.

    After another decline in the first three months of 2023 pushes the country into recession, “things could slowly pick up in the course of the year,” according to the report. “However, there’s no significant improvement in sight.”

  24. Daniel’s Iron and clay kingdom has its drawbacks. The needed massive deficit spending to promote this lie creates trillions of dollars, which are then used to buy up homes. Home price to household income multiples escalate and people are priced out. The average PC American idiot doesn’t understand economics and finance, nor wishes to figure it out. They live in constant fear when the Bible says not to.

    Many people won’t have their homes taken away, their actions will result in them handing them over voluntarily.

    Since house prices are determined at the margin, the large institutions continue to buy and hold, because of their successes in generating massive amounts of rental income for their owners and shareholders. House prices will only get more expensive FOREVER.

    Why all-cash purchases of homes are on the rise in Hall

    Recent data released by realty company Redfin indicates, on average, that cash sales increased from 47% in 2017 to 54% in 2022….

    Global investment companies like Blackstone and First Key have been amassing homes in Hall County since the Great Recession in 2008, according to Howard, though it’s still unclear just how much this could account for the current surge in all-cash transactions.

    “There were a lot of groups that came in (in 2008) – these large funds across the nation, buying houses all over the country, and Georgia was certainly one of those markets they were looking at in and around Atlanta,” Howard said.

    The intent for many of these investment funds, Howard said, was to “go in, get (homes) fixed up, rent them for about 10 years and then resell them” – either sell as a pool to another investor or back to individual homeowners, though that’s not what has happened.

    “What we have seen…they have had so much success and created so much income through those rental programs that they really haven’t liquidated…they’re continuing, today, to buy up those properties,” he said.

    Howard described the exclusivity seen in the current housing market as a grim appraisal on what’s referred to as “the American dream,” often tied to the notion of homeownership, which he said has declined from 69% to 65% nationwide since 2012. He pointed to the disparity of median income and median home price as a primary contributor to that decline.

    In Hall, median household income is around $67,000. The median home price, according to Howard, is more than 5 times that.

    “We talk about that all the time,” Howard said. “…I think (that disparity) definitely impacts it. If I’m a mortgage banker and I’m looking at that, I want (that figure) to be at 2-2.5 multiple versus a 5.5 multiple.”

    “That makes it almost impossible for someone to be able to purchase a new home,” he said. “The biggest challenge is they may have enough money to make the monthly payment, but then, it’s being able to save enough to have the down payment. That’s a huge challenge for the first-time homebuyer as well.”

  25. Bloomberg portrays the cartel of private central banks as doing a service for the public good. The losses at the central banks are just the loss leaders for their owners. It’s like a supermarket losing a dime on every gallon of milk, so it can get more customers who end up being overcharged for everything else.

    Overall, the article is useful in explaining how the Euro area’s ECB with its network of national banks operate together.

    According to BIS chief Agustin Carstens, that’s fine. He said this month that central banks “can and have operated effectively” even with negative equity. “The bottom line for central banks is not profit, but the public good.”

    Euro Area Braces for Era of Central-Bank Losses After QE Binge

Comments are closed.