TruthArchive.ai - Tweets Saved By @profstonge
@profstonge - Peter St Onge, Ph.D.
Up to 90% of published academic studies are false — they cannot be replicated. This includes cancer drugs, global warming, gender mutilation and — yes — vaccines. The NIH wants to fix it. https://t.co/aaw20oXRGH
Video Transcript AI Summary
The core of the problem is something called the replication crisis, where it turns out the majority of even top studies cannot, in fact, be replicated. In science, if you cannot replicate a result, it is not real. Out of the 67 top studies they tried to replicate, just 21% could be reproduced. Amgen found just 11% of studies could be replicated. Note, this is studies dealing with cells. We can only imagine studies dealing with people who are, of course, much more complex than cells. So what percent of psychology, sociology, gender swapping, even economics is false? Perhaps 90%, it could be 99. As Nobel economist James Buchanan famously put it, professors are, quote, camp following whores who will say whatever you pay them to say. So to fix this, the NIH is proposing to fund independent studies that simply retest key findings, what Bayer and Amgen did. It should be very fun when they run foundational left wing studies through the meat grinder from mutilating children to global warming to the minimum wage or inflation and central banking. Grab the popcorn. In the near term, the main takeaway from the replication crisis is any study that feels off probably is fake.
Full Transcript
Speaker 0: Nearly every academic study is garbage, a waste, sometimes a fraud of taxpayer money that yields a tsunami of misinformation that kills thousands of Americans. The NIH wants to fix it. Recently, NIH director Jay Bhattacharya announced a new journal he hopes will transform our corrupt and increasingly dangerous scientific establishment. The core of the problem is something called the replication crisis, where it turns out the majority of even top studies cannot, in fact, be replicated. In science, if you cannot replicate a result, it is not real.
It's a problem given millions of Americans take drugs or get life changing medical treatments with potentially harmful side effects based on these fake studies. To give a flavor, several years ago, German pharmaceutical giant Bayer was looking to develop cancer drugs. But before they started, they redid major oncology studies to make sure the data was sound. Out of the 67 top studies they tried to replicate, just 21% could be reproduced. This is one of the biggest pharma companies in the entire world.
A similar effort by pharmaceutical giant Amgen found just 11% of studies could be replicated. Note, this is studies dealing with cells. We can only imagine studies dealing with people who are, of course, much more complex than cells. So what percent of psychology, sociology, gender swapping, even economics is false? Perhaps 90%, it could be 99.
So why is it so bad? Some of it is literally fake numbers or statistical manipulation, cherry picking or so called p hacking. Lot of it is so called publication bias where papers that don't find the correct answer are discarded, as in your pharma grants, government grants, or left wing peers don't like them. While any findings that do attract funding or professional clout get blasted out even if they are statistical mirages. Now given government grants make up most academic funding, 109,000,000,000 last year, this is a big reason why academia is so comically left.
As Nobel economist James Buchanan famously put it, professors are, quote, camp following whores who will say whatever you pay them to say. So to fix this, the NIH is proposing to fund independent studies that simply retest key findings, what Bayer and Amgen did. It should be very fun when they run foundational left wing studies through the meat grinder from mutilating children to global warming to the minimum wage or inflation and central banking. Grab the popcorn. So as next brought to my ITrust Capital, in the near term, the main takeaway from the replication crisis is any study that feels off probably is fake.
As in, you should assume any study is false at least until science cleans itself up, meaning not just replication, but embracing skeptics instead of silencing them. The larger issue is government has all but destroyed the core value of science, which is the search for truth. The motto of Harvard University, for example, is lux et veritas, light and truth, not a joke. Modern academia instead has devolved into pay for play funded by pharma companies and a permanent left wing bureaucracy embezzling taxpayer money to turn truth and light into propaganda. The essence of science is skepticism and independence.
It's the defining characteristic what makes science among humanity's greatest inventions. Instead, our scientific establishment has been corrupted into parody. Replication starts to drain the swamp. Okay, we'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
The H1B program was sold as bringing geniuses from Tokyo and Munich. Instead, we got millions of discount coders while Americans who *did* learn to code can’t find a job. Trump wants to fix it. https://t.co/9DRG5GTEYt
Video Transcript AI Summary
Big changes are coming to the h one b visa that has swamped America with millions of low wage programmers. The administration now plans to return the program to its original purpose of bringing in top talent rather than running coding sweatshops that replace Americans. h one b was introduced in 1990 to bring top talent in engineering technology and medicine. The original salary cut off was $60,000, which in 1990 was about twice the salary of an entry level programmer. If adjusted for inflation, the minimum h one b today would be a 139,000. The initial cap was 65,000; it grew to 85,000, plus unlimited exemptions for universities, nonprofits, and government. It's 730,000 h one b's, about one in eight tech jobs. After years, h one b's can be converted into green cards; one estimate: 1.5 to 2,000,000 h one b's. That's roughly 3,000,000 people on the h one b gravy train, including roughly a million and a half tech workers, which is about one quarter of all tech jobs.
Full Transcript
Speaker 0: Big changes are coming to the h one b visa that has swamped America with millions of low wage programmers. Will Americans who did learn to code actually be able to get jobs? Last week, JD Vance blasted companies who lay off Americans then replace them at half the price with h one b's. The administration now plans to return the program to its original purpose of bringing in top talent rather than running coding sweatshops that replace Americans. The background is h one b was introduced in 1990 to bring top talent in engineering technology and medicine.
The original salary cut off was $60,000, which in 1990 was about twice the salary of an entry level programmer. In other words, stop talent. The problem is it was never adjusted for inflation, and 60 is now below an entry level programmer. If it were adjusted for inflation, the minimum h one b today would be a 139,000. So what was originally supposed to be best and brightest in the world is now a giant sweatshop.
And giant it is, the initial h one b cap was just 65,000 workers a year. That grew to 85, then they added an unlimited exemption for universities, nonprofits, and government. Meaning, given each h one b is a six year visa and extendable, not 65,000. It's not 85,000. It's 730,000 h one b's, which is about one in eight tech jobs.
Gets worse because after a few years, h one b's can be converted into green cards who get to stay permanently. By one estimate, that's another 1.5 to 2,000,000 h one b's. Toss independents educated with your tax dollars, and we're talking roughly 3,000,000 people on the h one b gravy train, including roughly a million and a half tech workers, which is about one quarter of all tech jobs. Now it's one thing if the workers were all making a 139 or a 190, that's top talent who build companies and create jobs. But at 60,000, it's a different story.
At that level, they are replacing entry level American tech workers who never got the chance to upscale, build companies, and create jobs. Now the cleanest fix would be simply adjust for inflation. So instead of 60, it's a 139,000. That's what Elon and Vivek were proposing earlier this year along with an annual fee to ensure h one b's are only used for top talent. By the way, Trump tried doing this in his first term, but it was blocked and then withdrawn by Biden.
So what Trump's trying now is even more aggressive, convert the program into a kind of reverse auction where the highest wages get the slots. So if you're hiring a rock star German AI programmer for half a million, it's automatic as it should be. If you're trying to brain drain Bangalore, it is a no. So at sex brought to buy Odd Trust Capital, Trump wants to keep one of America's key advantages, our ability to attract the best of the best from Europe, Japan, Korea, even China, while ending the millions deep IT sweatshop. Okay.
We'll be watching. See you next time.
reSee.it AI Summary
I shared my frustration about the FCC blocking Elon Musk's Starlink from a significant $42.5 billion rural telecom initiative, which has yet to connect anyone after three years. This decision prioritized politics over saving lives, especially during emergencies like Hurricane Helene. I also expressed gratitude to AJ Tourville for providing the Starlink data, highlighting that North Carolina could have had over 19,000 working Starlink kits available if the grant to SpaceX hadn't been revoked.
@profstonge - Peter St Onge, Ph.D.
As Carolina hurricane rescuers desperately deploy Starlink terminals, it turns out the FCC blocked @elonmusk's Starlink from a $42.5 billion rural telecoms push that -- 3 years later -- hasn't connected a single person. The FCC chose politics over lives. https://t.co/k2HS0M0edi
Video Transcript AI Summary
Emergency crews are deploying Starlink terminals in the Carolinas after a hurricane hampered rescue efforts. The FCC previously revoked a billion-dollar grant for Starlink to provide broadband to 19,522 sites in North Carolina.
In 2021, the Biden administration allocated $42.5 billion for rural broadband, but no connections have been made, and none are expected before 2026. Fiber optics providers lobbied to exclude Starlink, which quoted $120 per connection, while fiber could cost $4,000. The FCC rejected Starlink, citing responsible use of public funds, and accused it of being a monopoly for undercutting prices. Republicans on the FCC supported Starlink, accusing the Biden-Harris administration of prioritizing ideological goals.
The Communications Workers of America, a major donor to Democrats, represents fiber installers. While rural Americans can purchase Starlink, taxpayers will still pay $42.5 billion.
Full Transcript
Speaker 0: In the wake of the deadliest hurricane in thirty five years that knocked out the phone systems hampering rescue, emergency crews in the Carolinas are desperately deploying Starlink terminals to coordinate emergency responses and save lives. The kicker here is that these areas would have had fully operational communications. In fact, precisely 19,522 sites in North Carolina alone, but the FCC revoked a billion dollar grant to deploy Starlink to thousands of rural communities. In short, because they did not like Elon Musk, tens of thousands are desperate, and dozens have died perhaps with more to come. The story comes thanks to Natalie Denelischen, and the background here is in 2021, the Biden administration rolled up 42 and a half billion in grants to pay for rural broadband.
It was part of the Build Back Better Act, which was renamed the inflation reduction act since that pulled better, three years later, not a single person is connected. 42 and a half billion. In fact, they're saying nobody will be connected until at least 2026. Why is nobody connected? Because fiber optics providers lobbied to exclude Elon Musk's Starlink so they could feast on the roughly 4,000 per connection.
Just imagine how much profit is in digging fiber optic across miles of mountains, forests into the most remote pockets of wilderness. Sure. A Starling terminal could do it for a couple $100. In fact, Elon was quoting a $120 per connection. But why do that when you can dump 30 times more taxpayer dollars into obsolete fiber?
Hilariously, in rejecting Starlink's application to do it for $1.30 at the price, the FCC cited their, quote, responsibility to be a good steward of limited public funds. The Democrat FCC chair then went on to attack Starlink, accusing it of being a, quote, monopoly specifically because Elon managed to knock the price so low by doing the impossible building a global stick constellation of satellites to provide worldwide cellular service that bypasses the trillions it would take digging fiber. Note the Kafka logic here, build a better mousetrap, a 30 x better mousetrap when nobody else can and you are a monopolist, well, if you endorse Trump. To their credit, the Republicans on the FCC did support Starling criticizing the Biden Harris administration for, quote, prioritizing its ideological goals at the expense of connecting Americans. Alas, they were outvoted.
So beyond punishing millions of rural Americans to dunk on Elon, actually leaving them to die, why would the FCC's democrats good steward 42 and a half billion into oblivion? Simple. The Communications Workers of America, one of the biggest unions in the country that represents fiber installers and is one of the biggest donors to Democrats, giving at least 13,000,000 per cycle between campaign contributions and political lobbying. So champagne for the socialist, boiling swamp water for the voters who pay for it. Swiss tax brought to you by unchained.com.
The good news is rural Americans will be getting broadband a lot faster than 2026 because they can buy up from Starlink. The bad news is you'll still have to pay 42 and a half billion, so Verizon, AT and T, and the communications workers of America's get to have nice things. One thing you can count on is come 2026 or maybe 2036 at this pace, when all of those Alaskan cabins and vacation homes in Jackson Hole are finally wired up with obsolete fiber, the Democrats on the FCC and their pet oligarchs will be scrounging for their next 42 and a half billion swindle. Okay. We'll be watching.
See you next time.
@profstonge - Peter St Onge, Ph.D.
@elonmusk Thanks to @ajtourville who provided the underlying Starlink data. https://t.co/gnp0T914qb
@ajtourville - ALEX
FYI – North Carolina would have 19,522 working @Starlink kits available today after Hurricane Helene had the FCC not revoked in bad faith the grant that was awarded to SpaceX as the winning bidder. https://t.co/oXqTuyFBAc
@profstonge - Peter St Onge, Ph.D.
Democrats are pounding the claim that Republicans are cutting Medicaid. The truth is Republicans are *increasing* Medicaid -- it's just going to Americans. https://thefederalnewswire.com/stories/671084560-medicaid-funding-to-increase-24-under-reconciliation-bill-as-13-republicans-seek-assurances
Medicaid Funding To Increase 24% Under Reconciliation Bill as 13 Republicans Seek Assurances
As Congress moves toward finalizing a sweeping budget reconciliation bill, a group of Republican lawmakers has sent a letter to House leadership seeking assurances for Medicaid programs.
thefederalnewswire.com
reSee.it AI Summary
I noted that Booz Hamilton derives 98% of its revenue from government contracts, reflecting how consulting firms earned over $65 billion from federal clients last year. Despite this financial success, I question the effectiveness of their efforts, especially given their strong support for ESG and DEI initiatives.
@profstonge - Peter St Onge, Ph.D.
Consulting giant Booz, Hamilton gets 98% of its revenue from the government 🤯 Consulting companies made over $65 billion off the federal government last year -- by far the single biggest consumer of "management consulting" on earth. Guess it didn't work. Of course, Booz Hamilton have been huge corporate cheerleader of "ESG" and DEI." I wonder why.
reSee.it AI Summary
I believe we should exit various international organizations, starting with NATO and extending to the IMF, World Bank, WTO, and others. This includes a wide range of entities such as the WHO, UNESCO, and various development banks. I see these exits as a way to reclaim sovereignty and reduce dependence on global institutions that I feel do not align with our national interests. Each organization listed plays a role in global governance, but I advocate for a reevaluation of our participation in them.
@profstonge - Peter St Onge, Ph.D.
Exit NATO. Then exit: International Monetary Fund (IMF) World Bank (IBRD) World Trade Organization (WTO) North Atlantic Treaty Organization (NATO) Organization of American States (OAS) International Atomic Energy Agency (IAEA) World Health Organization (WHO) United Nations Educational, Scientific and Cultural Organization (UNESCO) International Labour Organization (ILO) Food and Agriculture Organization (FAO) International Civil Aviation Organization (ICAO) International Maritime Organization (IMO) World Intellectual Property Organization (WIPO) International Telecommunication Union (ITU) Organisation for Economic Co-operation and Development (OECD) Group of Seven (G7) Group of Twenty (G20) Asia-Pacific Economic Cooperation (APEC) Organization for Security and Co-operation in Europe (OSCE) Arctic Council Inter-American Development Bank (IDB) African Development Bank (AfDB) Asian Development Bank (ADB) International Organization for Migration (IOM) International Energy Agency (IEA) Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) International Fund for Agricultural Development (IFAD) World Meteorological Organization (WMO) International Tropical Timber Organization (ITTO) United Nations Industrial Development Organization (UNIDO)
reSee.it AI Summary
I find it frustrating that Americans spend $546 billion navigating a tax code that's 10 million words long—21 times longer than Lord of the Rings. But if you're tired of taxes, consider a Roth Bitcoin IRA for tax-free gains. It offers peace of mind and full ownership of your coins.
@profstonge - Peter St Onge, Ph.D.
Americans spend $546 billion trying to figure out their taxes. Because the tax code is 10 million words of incomprehensible legalese. 21 times longer than the Lord of the Rings trilogy. And if you disobey one word they'll put you in a cage.
Video Transcript AI Summary
Americans spend over $546 billion annually on IRS compliance, which is significantly more than the Department of Defense's budget. This cost arises from the 7.9 billion hours spent navigating a complex tax code, equivalent to nearly 4 million full-time workers. Additionally, households spend about $1,000 each on tax software. The actual taxes collected, totaling $4.9 trillion, lead to an estimated $15 trillion in lost economic output due to disincentives for production. This situation highlights the burdens imposed by the IRS, overshadowing spending on housing and food. While there are potential reforms on the horizon, significant resistance from special interests and bureaucrats remains.
Full Transcript
Speaker 0: The American people spend over $500,000,000,000 per year defending themselves against the IRS. That spinning distance from the 800,000,000,000 the Department of Defense spends protecting us against foreigners, well, failing to protect us in the case of the border. So forget Ukraine, forget ISIS. The calls are coming from inside the house. The number comes from my based colleague, Richard Stern, who reports on a new tax foundation study that the income tax cost Americans 546 $1,000,000,000 per year in compliance alone compared to our national defense budget at 849, which is supposed to protect the American people yet completely fails to protect us from the IRS.
Note this 546,000,000,000 is on top of the 4,900,000,000,000 they actually took from us in taxes, and, of course, it is separate from the economic impact of taxes, which might add another 15,000,000,000,000 in lost income. Breaking it down, the 5 46 is made up of 7,900,000,000 hours Americans spend complying with the tax code, which at 10,000,000 words is the length of 21 Lord of the Rings trilogies, all made of pure legalese. Of course, nobody actually understands the tax code. That's why big corporations hire tax lawyers at $500 an hour. But regular Americans, many of whom cannot name a state thanks to government schools, or assume to have completely mastered the entire 10,000,000 words of legalese or they will throw you in a cage.
That's equivalent to nearly 4,000,000 Americans working full time and without pay, doing nothing but tax paperwork. That's the population of Los Angeles is also 46 times the workforce of the IRS. Meaning, for every tax bureaucrat we pay to steal from us, another 46 Americans have to spend their evenings and weekends helping the IRS steal instead of playing with their kids. On top of the hours, Americans spend another 133,000,000,000 a year out of pocket on things like tax software. So that's about $1,000 per year per household.
So you could have bought groceries. Instead, you bought TurboTax. Note, 546 doesn't begin to estimate the cost of the IRS. I mentioned in previous videos, studies estimating that we lose $3 in production for every dollar taken in taxes since taxes discourage production. So why work?
Why build or expand a business if the government is just going to take it? That suggests the 4,900,000,000,000 in taxes the IRS actually does take are costing us roughly 15,000,000,000,000 in lost output. So 546 in compliance, 4.9 in lost taxes, 15,000,000,000,000 in lost output. Rarely have so few taken so much from so many. For a perspective that comes to roughly 8 times what Americans spend on housing, It's 10 times what we spend on food, all for the IRS.
So what's next? Brought to you by unchained.com. A constant team in our administrative state is spending trillions protecting us from threats that are not real. Ukraine, climate transphobia. While it ignores the threats that are very real from inflation to street crime to predatory taxation, that forces us to run on a treadmill until we are 70.
Between Trump's promised tax cuts, Elon's spending cuts, and slashing the administrative state that strangles the economy, we can see light at the end of the tunnel, but there's a lot of special interest from uni party politicians to millions of parasitic bureaucrats who desperately want to keep it going. Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
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@profstonge - Peter St Onge, Ph.D.
Biden-Harris goons go after @elonmusk and others for being pro-free speech and pro-Trump. Attacking dissidents is a hallmark of every authoritarian regime. And the solution’s very easy: defund the administrative state. Return the money — and the freedoms — to the people. https://t.co/laTesstn99
Video Transcript AI Summary
Elon Musk recently discussed government attacks on his companies since he embraced free speech and supported Donald Trump. These attacks include absurd regulations and fines, reflecting authoritarian tactics that suppress dissent. Historically, CEOs could voice concerns, but the climate has changed, especially during the COVID era and the BLM riots. Despite many Fortune 500 CEOs likely opposing the violence, none spoke out due to fear of repercussions for their employees and shareholders. Some companies even supported the riots financially. The solution lies in dismantling the administrative state, cutting bureaucratic agencies, and defunding them to restore individual rights and freedoms.
We'll continue to monitor this situation.
Full Transcript
Speaker 0: Recently, Elon Musk gave a talk detailing the government attacks on his companies since he came out as pro free speech and especially since he came out as pro Donald Trump. These include endless made up environmental rules, including a study to see if falling rockets hit sharks, includes curves on SpaceX launches specifically because Elon tweets pro Trump things, and it includes a $600,000 fine for spilling drinking water in a desert, Not a joke. Attacking dissident companies, of course, is a hallmark of authoritarian regimes as Mussolini put it, quote, everything within the state, nothing outside the state, nothing against the state. For a true authoritarian, no citizen is allowed to descend, and certainly no company which are sitting ducks. Of course, in theory, this sort of thing does not happen in America.
In theory, we jail bureaucrats who conduct Mussolini style lawfare. Alas, it has been going on ever since the progressives imposed the administrative state about a 100 years ago, settling now every industry in America with a regime big brother, a library worth of regulations, mandates, licensing boards, a bureaucratic army that, like everything government does, is thoroughly corrupt. Still, before Donald Trump, there was some independence. CEOs could still criticize regime shibboleths like mandatory racism or affirmative action or transvestites in locker rooms if anybody had been dumb enough to propose that in 2015. Sadly, that all changed as the authoritarian borg went to war with Trump culminating in the reign of terror during COVID that snuffed out the slightest hint of disloyalty with an enthusiasm that would make North Korea blush.
We saw the living color during the 2020 BLM riots. Now historically, about 70% of Fortune 500 CEOs vote Republican. Meaning that statistically, at least 70% of them were probably horrified by BLM's origin of city burning and murder. And yet, not one Fortune 500 CEO spoke up. Now you might say that's because most are spineless cowards and that is true, but look at it from their perspective.
You're entrusted with tens of thousands of employees, and if you speak up, rioters will come beat them up, burn their workplace, and put them out of a job and your shareholders out of a retirement account. You could, like Elon, be targeted by 100 of regulators, even prosecutors in blue cities, hunting with a fine tooth comb for some way, any excuse to destroy the entire company. For a CEO with a legal duty to protect the company and a moral duty to protect employees, it is simply too risky, so they shut up. To be sure, many indulged enthusiastically jumping on the institutionalized racism of DEI or cutting checks to the very rioters burning cities. In fact, BLM cashed more than 50,000,000,000 in corporate donations, not since Genghis Khan has burning a city been quite so profitable.
But others never drank the Kool Aid. They may have opposed the left with every fiber of their being, but they were held hostage by rioters, prosecutors, regulators, even financiers like BlackRock. So what's next? Brought to you by on chain.com. The solution is very simple.
Get rid of the administrative state. Lay off the 100,000 little Mussolini's populating every regulatory agency from the EPA to the CDC to the SEC. The supreme court laid the groundwork earlier this year with its Loper Breit decision clipping bureaucrats' wings, and Elon himself has been floated for a blue ribbon panel slashing government waste and corruption. The final step is congress sitting down and actually defunding these agencies. Zero them out, return the money to the people, return the bureaucrats to jobs that don't involve extortion, and let Americans get back to exercising our fundamental rights without being destroyed.
Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
You'd go to jail for decades, they just pay a fine. At some point it's licensed crime 🤔
reSee.it AI Summary
Kamala's economic plan is unfolding, featuring $5 trillion in new taxes. This includes a 39.6% top rate on small businesses, the highest capital gains tax ever, and raising the corporate rate to levels higher than China, Canada, and Europe. Taxing unrealized capital gains seems particularly misguided.
@profstonge - Peter St Onge, Ph.D.
Kamala's economic plan is taking shape, starting with *5 trillion dollars* in new taxes. These include a 39.6% top rate on small business, the highest-ever capital gains tax, and taking the corporate rate from one of the best in the world to one of the worst -- higher than China, Canada, and even Europe. But the very dumbest is taxing "unrealized capital gains" -- money you didn't actually make.
Video Transcript AI Summary
Kamala Harris' economic plan involves $5 trillion in new taxes, including raising taxes on small businesses to 39.6% and capital gains/dividends to 44.6%. The corporate tax rate would increase to 28%, potentially making the US a less attractive place for business than China, Canada, Britain, Russia, and the EU. Workers could bear 70% of this in lower wages.
Harris also proposes a second death tax, taxing inherited assets as if they were sold, with up to 44.6% going to the government on top of estate taxes. She also aims to tax unrealized gains, which would affect family businesses and farms.
Americans overwhelmingly oppose taxes on unrealized gains. European wealth taxes have failed, causing capital flight; Norway lost $54 billion and $600 million in taxes. Harris' plans are considered far-left, even compared to Joe Biden's, and could lead to inflation and confiscatory taxes, harming the economy and future generations.
Full Transcript
Speaker 0: Kamala Harris' economic plan is taking shape starting with $5,000,000,000,000 in new taxes because Washington clearly does not have enough money to spend. In the past fortnight alone, Kamala has promised to hike tax on small businesses to 39.6% and hike capital gains and dividends to a top rate of 44.6, which would be the highest in history even beating the communist adjacent Jimmy Carter. Since taxing half your life savings doesn't come close to keeping Washington fed, she also wants to hike the corporate rate by a third to 28%. That would reverse Trump's cut. It would take us from one of the best places in the world to do business to one of the worst.
We would actually be worse than China, Canada, Britain, Russia, even the European Union. A company would literally make money moving to Canada. And for so called strategic sectors, our tax rate would be double the rate in China. Note that workers actually pay corporate income tax. A tax foundation study found they pay around 70% in the form of lower wages.
The rest is paid by shareholders in lower retirement returns and customers in higher prices. Yes. The same high prices Kamala is currently blaming on price gouging. The fund doesn't stop there. She's also calling for a second death tax, something called step up basis that would treat death as a taxable event.
So not only would the family business reform have to pay estate taxes when it's passed on, it would be taxed as if all the assets were sold with up to 44.6% of that going to the government on top of the death tax. Finally, the big one. Kamala Taylors are pushing for something we've never taxed in this country, unrealized gains. As any bureaucrat pretends you sold all your stock every year and the family farm and sends you a gigantic bill. Like all new taxes, this one is being sold as only hitting the rich, but in reality, it will hit family businesses and farms.
Moreover, I mentioned in a recent video how the income tax itself started out only hitting the top 1% at a top rate of 7%. And here we are today with more tax returns than people and a top rate of, if Kamala gets her way, 44.6%. And suddenly, Americans overwhelmingly oppose taxes on unrealized gains by a factor of 3 to 1, 76% of independents oppose it. It's also worth noting that Europeans have tried this kind of wealth tax over and over, and every time it has failed spectacularly. The actual rich just move their money and hire better tax lawyers while small businesses get wiped out.
So Norway, for example, expected to collect a 150,000,000 per year from their wealth tax, but instead, $54,000,000,000 fled the country, taking 600,000,000 of taxes with them. So what's next? Brought to you by on chain.com. Barely a month into Kamala, she is already far to the left of even Joe Biden. And keep in mind, this is before the election when they're trying not to sound crazy.
We can only imagine what's coming after the election. Like drinking radiator coolant, government spending, alas, always tastes sweet in the beginning. The stimulus checks, the $1,000,000,000,000 for green energy this week's war, they're all painless blips on a debt chart until comes the payback. First, the inflation, then the taxes that amount to wholesale confiscation of your retirement, the financial future for the young, all while gutting what's left of our productive economy. Okay.
We'll be watching. See you next time.
reSee.it AI Summary
Canada faces its worst economic decline in 40 years, struggling to recover from the pandemic. Under Trudeau, incomes are at West Virginia levels while housing prices soar to Los Angeles levels, leading many to pay half their income in taxes. 70% of Canadians feel the country is broken, with nearly half considering relocation.
@profstonge - Peter St Onge, Ph.D.
Canada is headed for its worst decline in 40 years as economy fails to recover from the pandemic. Under Trudeau, incomes are West Virginia level, house prices are Los Angeles level, and a middle class family might pay *half* their income in taxes. 7 in 10 Canadians now think that “Canada is broken” — rising to 8 in 10 of the young. Almost half of Canadians are considering moving to another country. Rarely has a country fallen so far so fast.
Video Transcript AI Summary
Canada's standard of living is declining rapidly, with stagnant wages, rising inflation, and increasing bankruptcy filings. The country's economy is struggling, with high taxes and government dominance under Justin Trudeau. Many Canadians are considering moving abroad due to the worsening situation. Conservative Pierre Poliyev is leading in the polls, but government-funded media is working against him. The future looks bleak with more inflation, decline, and mass migration predicted.
Full Transcript
Speaker 0: Canada standard of living is on track for its worst decline in 40 years according to a new study by Canada's Fraser Institute. The study compares the 3 worst periods of decline in Canada in the last 40 years, such as 1989, 2008, and today. They found that unlike previous recessions, Canada is not recovering this time as if something broke. In fact, according to Financial Post, since 2019, Canada's had the worst growth out of 50 developed economies. On the ground, this means inflation adjusted Canadian wages have been flat since 2016, and it's nowhere near over.
Canada's per person real GDP is still falling. With a looming US recession, US' 75% of Canada's exports, Canada could crash again before it ever recovered. In previous videos, I've talked about the disaster that is Justin Trudeau's Canada. In short, incomes are West Virginia level, house prices are Los Angeles level, and Canadian taxes are halfway to the Soviet Union. It is not rare for a middle class family in Canada to pay half of their income in taxes.
Meanwhile, since the pandemic, Canada's official food inflation is up 25%, energy is up 30%, partly thanks to a new carbon tax. And keep in mind, sales tax in most Canadian provinces is 13 to 15%. While Canadians post TikToks about trying to stretch a loaf of bread through the week or selling off their possessions to afford groceries, the cost of living is hitting harder with time. Canadian bankruptcy filings jumped 40% last year, while CIBC reports nearly half of Canadians have zero emergency savings. StatsCan reports Canada's violent crime rate is up 40 percent since 2014.
And Ipsos poll found that 7 in 10 Canadians now agree that, quote, Canada is broken, that rises to 8 and 10 of those between ages 18 and 34. So they are the future. Angus found fully 40 2% of Canadians are considering moving to another country. Now this is all a shock because it happened so fast. It's night and day from the last crisis in 2008, which Canada weathered much better than America.
So what changed? Justin Trudeau, specifically his campaign to convert Canada from a mixed economy like the US into a government dominated economy like the sick men of the European Union. Under Trudeau, business investment plunged by a third while government spending nearly doubled to almost half of Canada's GDP. Government workers in Canada are growing almost 4 times faster than the private sector, and 1 in 3 Canadians now work for the government, raking in 30% more in salary and benefits than the taxpayers they lowered over. Now the 1,700,000 Canadians, which is roughly 1 in 10 households, are on welfare.
Of course, that all makes it very difficult to win an election and can arise small government platform. You're up against the government provided livelihoods of 40% of voters, meaning you've got to win, what, 80% of everybody else. So it's thanks. Brought to you by on chain.com. Near term things will get worse because Canadians are stuck with Justin Trudeau through the next election 2025.
Conservative Pierre Poliyev is ahead in the polls for now, but Canada's government funded media is doing everything they can to destroy him, so the lead is already narrowing. That means more inflation, more decline, more mass migration, and rising crime in what was once a paradise. Read the full article with charts and all the gory details at.com. Okay. We'll be watching.
See you next time.
reSee.it AI Summary
Javier Milei achieved significant progress in Argentina, reducing annualized inflation by 80% and transforming a budget deficit into a surplus. He accomplished this by cutting government spending, subsidies, and canceling crony contracts. The next step is to boost wages by empowering small businesses, which could lead to an escape from the socialist dystopia.
@profstonge - Peter St Onge, Ph.D.
Javier Milei’s “Miracle Turnaround” in Argentina. He brought annualized inflation down by 80%. He turned a monster budget deficit into a durable surplus. He slashed government spending, vote-buying subsidies, and cancelled crony contracts. The final challenge is bringing wages up by unleashing Argentina's long-suffering small businesses. If he does this, he'll finally pull Argentina out of the socialist dystopia.
Video Transcript AI Summary
Argentina's President Malay has achieved significant economic progress in just 6 months, reducing inflation from 25% to 8.8% and turning a budget deficit into a surplus. He cut public sector wages, subsidies, and deregulated markets to stimulate growth. Challenges remain with high inflation, spending, and regulation, as the opposition controls congress. Malay's focus is on increasing wages, reducing poverty, and supporting small businesses through deregulation and tax cuts. Success in these areas could pave the way for further reforms to transform Argentina's economy. Millions are hopeful for his success. Visit profsainanage.com for more details.
Full Transcript
Speaker 0: Just 6 months into office, Argentina's Javier Mele is getting it done, turning around one of the world's longest running socialist basket cases. He slashed inflation by 4 5ths, the peso is finally stabilizing, and he's tamed a monster 5% budget deficit equivalent to nearly $2,000,000,000,000 in US terms into what is apparently an enduring budget surplus. As Wall Street Silver puts it, Malay is, quote, destroying left wing socialist economic theory. As Fox News puts it, he's, quote, shutting up critics with a miracle turnaround. Even the IMF is now begrudgingly accepting that Malay is doing what he promised.
First, the numbers. In the month Malay took office, Argentina was sporting an inflation rate of 25% per month. Now just 6 months later, it's down to single digits, 8.8% and falling. Keep in mind these are monthly numbers, so annualized, that comes to a fivefold reduction in inflation down from the annualized 1,355 percent inflation the socialist had dumped on the living room carpets of long suffering Argentines. Also, keep in mind that was despite Malay's slashing subsidies to public transportation electricity, gas, and water in order to fix the budget deficit.
That should have sent inflation soaring the short run. Instead, he knocked it down by 80%. This has allowed Malay to cut interest rates from a 120 6% when he took office to just 40%, which is higher than Jerome Powell, but pretty good progress for 6 months into one of the world's worst socialist basket case. The other big win has been on Argentina's monstrous budget deficit, which was a main driver of hyperinflation for going on decades. The problem is roughly 1 in 5 Argentinians work for the government.
Well, maybe they don't work, but they collect salaries from the government. That's almost twice the proportion in countries like Mexico or Chile. And it's a big reason why it's been so hard to change Argentina. So if 20% of the population is collecting a government salary, your small government candidate doesn't need 51% of voters. He needs 71%.
Nonetheless, voters were sick of it, and Malay delivered. He slashed public sector wages, suspended make work government projects, as well as cutting those subsidies so markets can actually function and invest again. He paired the cuts with deregulation sclerotic markets above all housing that boosted private sector growth to cushion some of the cuts in government spending. Brought to buy on chain.com, Malay and his economy minister Caputo freely admit the work's just beginning. Inflation spending and regulation are all still suffocating Argentina while the opposition controls congress and will do everything they can to stop or sabotage reforms.
When Millet first came to office, I venture that his prospects would depend on winning over regular Argentinians. After all, if you get 60 or 70% approval, even a hostile opposition goes along out of self preservation. That means the most important thing near term is getting wages rising faster than inflation to bring down sky high poverty rates. Beyond inflation, that means getting off the back of especially small business, so deregulation, even tax cuts. If Malay can do this, he'll get enough political momentum to push his core labor and monetary reforms that would fundamentally transform Argentina.
Either way, millions of us will be cheering him on. Read the rest of the article with charts and all the gory details at profsainanage.com. Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
Years after the fact, media is finally discovering that Gen Z is Doomed. Savaged by the pandemic, then Bidenflation, lagging wages, and now a looming recession. We're raising a generation of wards of the state, sustained not by productive work but by handouts and debt. https://t.co/iBk4Sb7mVV
Video Transcript AI Summary
Gen Z is facing financial challenges with rising debt, low savings rates, and increasing delinquencies. They are accumulating debt at a faster rate than previous generations, with auto loan and credit card delinquencies on the rise. Buy now, pay later schemes are adding to their financial burden. As a result, Gen Z is resorting to budget clothing options as their spending habits outpace their income. This generation may struggle as government support and unsustainable spending patterns come to a halt. The full article can be found at profsaintons.com.
Full Transcript
Speaker 0: Years after the fact, the mainstream media is finally discovering that Gen z is doomed. As CNN puts it, Gen z is, quote, earning less, has more debt, and higher delinquency rates than millennials did at their age. So if you think millennials are bad, you ain't seen nothing yet. In short, the pandemic did a number on Gen z followed by a wallop from Bidenflation, lagging wages, and now a looming recession. How are they surviving?
Debt. A new study from TransUnion finds that since 2013, average debt balances for those aged 22 to 24 has risen by 40%, including a 14% rise in auto loans and a 26% rise in credit card debt. For those with a mortgage, which is a vanishingly low percent of Gen Z, the average mortgage debt is up by nearly half to $215,000, which is quite a bit of debt at 24. Now that, of course, is thanks to the Fed's money printing, driving house prices to an arm plus a leg. This debt has mirrored the savings rate, which plunged during COVID from an already abysmal 6% pre pandemic to just 3.2%.
So Americans are saving 3.2 pennies on the dollar earned. For perspective, in the early 19 nineties, it was three times that. The pandemic apparently accelerated debt most dramatically among the young. So Gen z opened new credit cards at a faster rate than even millennials during the pandemic. In fact, during 2020, there were multiple months when almost 6% of Gen zers had opened at least one new credit card in the previous month.
Now Gen z has the lowest income, therefore, the lowest debt capacity of any generation. Yet, here they are sporting multiple cars and giving them a good workout. All this debt, of course, is now driving delinquency rates with auto loan delinquencies rising by half and credit card delinquencies doubling since 2022 to over 6% of credit cards now in delinquency. That's not just carrying balances. That is actual delinquency.
Now all of this is just the debt we can see. So buy now, pay later has edged out avocado toast for Gen z's favorite daytime activity, totaling an estimated 700,000,000,000 in shadow debt. In a recent Harris poll, one out of 3 respondents said they've spent more than $1,000 on buy now, pay later, and 54% of users admitted spending more than they can afford. 1 in 4 reported that buy now, pay later is making them fall behind on other lines of credit. Note a credit card charges 24% interest per year, which is slightly lower than the mafia.
So what's next? Brought to you by unchained.com. In a recent video, I mentioned the fallout from all this debt. With declining sales for low end staples from McDonald's to Coke to Kraft Mac and Cheese, a Gen z standby. Now Walmart is rolling out a private label brand of clothes under $5 to clothe our next generation in all the finery their debt will allow.
Gen z is becoming a financial train wreck, and keep in mind, this is the next generation of Americans. They're facing soaring prices and plunging wages even as their formative experience of stimulus checks and student loan bailouts has taught them that maybe if they crash hard enough, mom and dad or the federal government will bail them out. We are raising a generation of wards of the state sustained not by productive work, but by debt and handouts. Given government spending is unsustainable at 7% of GDP and deficits, they will eventually hit reality. And when it comes, they'll be completely unprepared.
Read the rest of the article with charts and all the gory details atprofsaintons.com. Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
Turns out Biden's jobs numbers are fake. Because they fail to count between 5 million and 7 million Americans who dropped out of the labor force since Covid. Millions have gone onto government benefits. Millions more downsized their lifestyle, limping along until social security.
Video Transcript AI Summary
Bidenomics job numbers are questioned as Americans struggle to find work. Unemployment rate may actually be between 6.5% and nearly 8%, comparable to recession levels. Millions of jobless Americans are not counted in official statistics due to various reasons like fear, stimulus checks, and early retirement. Real wages have fallen, leading to second jobs and part-time work. Bidenomics relies on misleading data, but public opinion remains skeptical. Visit PeterStAnsch.com for more information.
Full Transcript
Speaker 0: Apologists for Bidenomics have hung their hat above all on his allegedly amazing job numbers. Yet, on the ground, Americans cannot see it. They report that jobs are hard to find. Quit rates are an abysmal 2.1%, meaning people are afraid to quit their job because they don't think they can find another one. The labor force still has not recovered pre pandemic levels years after the last Californian jogger took their mask off.
So who's right? Joe Biden's statistics or the American people? My colleague, EJ Antony, dug into the numbers. He concludes that the true unemployment rate is not 3.9%. It's actually between 6 a half and nearly 8%.
That would be a typical recession level. In the 1991 recession, unemployment topped at 7.5. The dotcom recession never passed 6.3. Outside COVID, only the 2008 crisis was worse with today's number comparable to early 2008 on the eve of that crash. So how does Joe Biden get to 39?
The first thing to remember is the unemployment rate does not count people who are jobless. It only counts people who are actively looking for work. So if they're living in mom's basement playing Assassin's Creed or sleeping on Skid Row, they are not unemployed. They are, quote, out of the labor force. Statistically, they may as well be retired.
So when you tally up these people, it turns out millions of Americans don't have jobs, but they don't show up in the numbers. To understand why, during lockdowns, over 17,000,000 people were forced into unemployment, another 8,000,000 people immediately left the labor force voluntarily. Some were afraid, some were waiting and seeing, some were happy with stimulus checks that paid more than work, and then graduated on to government benefits that were no questions asked during the pandemic and continued to this day. Others simply retired early, downsizing their lifestyle to limp along to Social Security. So 25,000,000 people of whom only 17 show up in the numbers.
As the economy reopened, millions of those people did return to work, but many never did. Meaning, they're still not counted 5 years later. So depending which data series you use, this gap is between 4,700,000 and 7,000,000 Americans who don't have jobs but are not counted. You add that to the official tally of 6,000,000 unemployed, you go from Bidenomics miracle straight to recession level of jobs despite spending nearly 2,000,000,000,000 in deficits per year. So what's next?
Brought to you by on chain.com. Government numbers will never be accurate for the simple reason that government has a horse in that race. It's the judge in its own case. Happily, there is another metric, real wages. If jobs are in fact plentiful, then employers have to pay more.
If, on the other hand, a man can't find decent work, they will not. So on that metric, EJ hit the nail on the head since Biden was in stalled after inflation wages about falling met almost 2% per year. That's driven millions of Americans to pick up second jobs in part time work, which is typical of a jobs recession. And, by the way, shows up as record jobs growth. The entire Bidenomics gaslight is built on creative statistics and willful misreading of data.
Opinion polls say the American people are not buying it. Of course, they will keep lying anyway. A new episode of the podcast just dropped. Check it out at Peter St. Ansch.com.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
China is reportedly in default on a $1 trillion debt owed to US citizens. Despite this, China does not pay any interest, while the US sends $50 million daily to China. The debt originated from gold bonds during the Communist takeover, and although China has paid other countries, they disregard the trillion owed to Americans. American politicians show little concern.
@profstonge - Peter St Onge, Ph.D.
China is in default on $1 trillion it owes US citizens and Washington does nothing. That means China owes us more than we owe them. Yet they don't pay a dime of interest while we send $50 million a day to China. The debt comes from gold bonds when the Communists took power. And, while China has paid other countries like the UK, they ignore the trillion they owe Americans. Our politicians don't care.
Video Transcript AI Summary
China owes over $1 trillion in defaulted debt to US citizens, while the US pays $50 million daily in interest to China. The debt dates back to the 1930s and is gold-denominated, now worth up to $1.6 trillion. Despite accruing unpaid interest, China pays zero interest on its debt to the US. The US government ignores holding China accountable, preferring to pay them while China disregards international law. The situation highlights the unequal treatment between the two countries, with China demanding adherence to rules they themselves ignore. Weak American politicians and media are criticized for favoring a foreign dictatorship over their own people. The hope for accountability seems unlikely under the current administration.
Full Transcript
Speaker 0: China is in default on over a $1,000,000,000,000 of debt owed to US citizens, and the US government, of course, ignores it. My colleague, Andrew Hill, recently wrote an article in the Hill detailing how the US pays interest on 800,000,000,000 of treasuries held by China. So it's about $50,000,000 per day that we pay to China. Ironically enough, China is currently in default on over a trillion in sovereign debt. In other words, they owe us more than we owe them, and they are paying us precisely zero interest.
The debt dates from the 19 thirties borrowed from private investors and governments and then defaulted by the Republic of China. After the communist took control, they kept the assets but ignored the debts, which violates centuries of international law. Now if you take country's assets, normally, you have to take the debts along with it. For context, old sovereign bonds do not just evaporate. As Hale noted in his article, Germany made a reparations payment for World War 1 in 2010.
In 2015, Britain paid bonds issued in the 18th century. In fact, in 1987, the British government did receive payment on their Chinese sovereign debt, the same gold bonds, which they got in return for handing China access to British capital markets. Since after all, governments in default cannot access foreign capital markets. That is another long established precedent. The US, of course, is a different story.
As always, we are the suckers who let it slide because our politicians don't have the balls to a force American interests when it comes to China. Keep in mind, this is debt owed to American citizens, not to our government. So it's not our government's prerogative to ignore it. By the way, the communist didn't exactly win in China. We gave it to them at least according to famous economist, Gordon Tullock, who actually worked for the thoroughly communist infiltrated state department in Tianjin whilst they were handing the country to the communist.
According to Tullock, once the war ended, the pro communist department of state got the land in Asia while the anti communist department of defense got the islands, which is why Taiwan and Japan are not communist. The DOD stopped the state department's communist proxies at the beach, and, of course, it reframes the Korean War as a bureaucratic turf battle between state and DOD. So back to the loans, exactly how much are they worth? The debts were gold denominated, which was common before FDR. So today, they're worth between a 1,000,000,000,000 and 1.6 trillion, so up to double all of the US debt China holds.
Given the debts are not being serviced, of course, they continue accruing unpaid interest even as the US continues paying China like a chump. So soon enough, they will be 2,000,000,000,000. So what's next? Brought to you by unchained.com. If there's one thing Beijing is good at, it is demanding everybody else play by the rules that they themselves ignore.
Meanwhile, weak American politicians and media carry China's water, apparently preferring a foreign dictatorship to their own people. It would be a nice change for our government to hold China accountable from $1,000,000,000,000 debts to, say, bat virus labs. Of course, that won't happen so long as Biden's president, we shall remain on our knees. Okay. We'll be watching.
See you next time.
@profstonge - Peter St Onge, Ph.D.
Fiscal collapse accelerates as Treasury issues $7 trillion of debt in just 3 months. That matches the worst of Covid -- no pandemic needed. And it's double the previous record that had stood for 231 years. https://t.co/e0W0y2n6cm
Video Transcript AI Summary
The Department of Treasury is issuing record levels of debt, with $7 trillion issued in just 3 months and $23 trillion in a year. This has bloated the treasury market, raising concerns about a potential crash. The economy is propped up by debt, with federal debt rising by $1 trillion every 90 days. US treasuries are seen as cash but are actually promises to pay back in the future. The illusion that all debt will be repaid is crucial, as any doubts could lead to a financial system collapse. Fiscal trends are worsening, with a $2 trillion deficit that will increase during a recession. Collapse seems inevitable without intervention. Visit profsaintonj.com for more details.
Full Transcript
Speaker 0: In case you thought anybody in Washington was driving this thing, they are not. It's official the department of treasury is now issuing debt at pandemic levels. That was twice the previous record, and here we are again. In raw numbers, latest figures for q 4 2023 show treasury issued 7,000,000,000,000 in new debt in just 3 months. For the entire year, it came to 23,000,000,000,000.
That has bloated the treasury market. It's now up 60% since the pandemic. In other words, 1 third of outstanding US debt has fresh ink on it. It's also up roughly sixfold since the 2008 crisis. Meaning, if we hit another crash, it could be a lot bigger.
At this point, federal debt is rising by $1,000,000,000,000 every 90 days, and US government spending as a percent of GDP is at world war 2 levels. Given we are not in a world war, at least in theory, nor are we in a pandemic, why so much debt? Easy. It is buying growth. As Balaji Srinivasan puts it, the economy isn't real.
It's propped up by debt. They will fake it till they break it. Even the Wall Street Journal, who loves debt, is sounding the alarm, writing that rapid growth in debt often ends badly. And given the enormous size and alleged safety of US debt, any, quote, instability could be catastrophic. Why catastrophic?
Because US treasuries are treated like cash by everything from banks to pension funds to large corporations and individual 4 one k's. A treasury is essentially seen as cash that pays interest. This is false, of course. A treasury is actually a promise from uncle Sam to pay you back someday, perhaps 20 or 30 years in the future. That means that unlike cash, any concerns that investors might have about uncle Sam's ability or willingness to pay can crash treasuries.
Now if that happens, it immediately sends the entire banking system, the pension system, and 100 of corporations into default. Indeed, it could break the payments plumbing that underpins the entire financial system, meaning you you wouldn't be able to get money. Not your salary, not your mortgage, not your groceries. If that all sounds dire, recall that all of these are sustained by the gossamer thin belief that uncle Sam will pay back every last penny with interest. This is curious given that neither voters, who in theory run the country, nor congress, who actually does run the country, seem to think the debt is real.
You can actually try this at home. Tell a voter that student loan bailouts will cost a trillion, meaning $10,000,000,000,000 out of their pocket, or that another war will cost $30 out of their pocket. Most don't care because it's not real. So the voters don't think it's real. Congress doesn't think it's real.
But literally, everything depends on the illusion that every penny of federal debt will be repaid in full with interest. What could go wrong? So what is next? Brought to you by unchained.com. Every fiscal trend is in the wrong direction.
We're already at 2 trillion deficit. It will soar by yet more trillions when recession hits, and it will keep churning with Social Security and Medicare both growing and spending on everything from illegal immigrants to fresh wars. This point, there is nothing standing between us and fiscal collapse. There is no countervailing force. The only question is when.
Check out the whole article at profsaintonj.com with charts and all the gory details. Okay? We'll be watching. See you next time.
reSee.it AI Summary
The federal government's spending exceeds tax revenue, with debt service consuming a significant portion of individual income tax. This means that a substantial portion of taxpayers' money goes towards Wall Street and China. The government's excessive spending on wars and welfare for migrants leaves the people to contend for limited resources.
@profstonge - Peter St Onge, Ph.D.
The federal government now spends twice what it takes in tax revenue. While debt service alone eats nearly 2/3 of individual income tax. So when you write that check to the IRS next month, rest easy knowing most of it is going to Wall Street and China. The federal spending borg is eating everything in sight, crapping out wars and welfare for migrants. And leaving the people they serve to fight over the crumbs.
Video Transcript AI Summary
The federal government is overspending, with deficits hitting record highs due to wars, welfare, and interest on debt. Tax revenue is not keeping up with spending, leading to a ballooning national debt. Interest payments on debt are consuming a large portion of tax revenue, making the situation unsustainable. The government shows no signs of cutting spending, leading to predictions of inflation, defaults, and debt crises in the future. This financial Ponzi scheme could end in disaster if not addressed soon.
Full Transcript
Speaker 0: The federal spending board is eating the country alive, crapping out wars and welfare for migrants, and leaving the people they serve to fight over the crumbs. Fresh numbers came out last week that the federal government spent roughly twice what it took in tax revenue last month as the federal deficit hit the 2nd highest ever, second only to the COVID lockdowns. Meanwhile, separate data reports that interest costs on federal debt alone are consuming fully 2 thirds of the income taxes you pay. So as you tally up the tens of 1,000 in taxes you're paying next month, reflect on the sense of achievement that 2 thirds of that is going to Wall Street and Chinese investors. In short, we are at the loot the treasury stage of the fall of empire, which always happens with paper money.
You could argue the surprise is that it's taken this long. So first the numbers. The US Treasury reported that last month it collected 271,000,000,000, yet it spent 567,000,000,000, more than double. About 224 of the spending was Social Security, Medicare, and veterans benefits. The other 343 was wars, welfare, and interest on the debt.
In other words, what's bankrupting us is the welfare warfare complex. In fact, federal tax receipts adjusted for inflation have been down since 2021. This is very odd considering the Bidenomics miracle. Normally, a rising economy pays more taxes, so it suggests there is a lot of hidden distress that government statisticians are somehow missing. So taxes are down, yet spending has soared 50% since COVID.
To illustrate pre COVID, federal spending was running under 400,000,000,000 per month. Since COVID, it's been closer to 600. This brought the February deficit alone to nearly 300,000,000,000, which is up 13% on last year's grotesque number, and it puts us on track for 2,000,000,000,000 of deficit this year. For perspective, in 2015, which was Obama's last year, the annual deficit was about 400,000,000,000. Now it's 300,000,000,000 in a month.
Of course, that deficit is what's driving skyrocketing federal debt, which is up 1,000,000,000,000 in just the past 100 days. That comes to an annual rate of 3 and a half trillion, which is also known as $28,000 per household in America. So think of it like putting 23100 on the credit card every month and never ever paying it off. And that brings us to the interest payments. So last month, Treasury collected a 120,000,000,000 from individual income tax and spent fully 76 of that on debt interest.
As my colleague, EJ Antoni, pointed out, that's not 76,000,000,000 for Rhodes School's Social Security. It's just to service old debt. It's the monthly interest on the credit card while they pile up fresh trillions. This is obviously unsustainable, and it's getting worse as the fresh dot debt piles up the interest costs. And next recession, it could balloon past the point of no return.
We're not far from the day when all taxes are going to old debt with all new spending being effectively printed, racking up yet more trillions as the months tick by. So what's next? Brought to you by onchain.com. Washington has entered the Ponzi financial stage. Of course, they could stop it overnight by slashing spending, but they won't.
The 2008 crisis in COVID opened the floodgates, growing the federal beast to cancerous proportions. How will it end? How it always ends? Inflation, mass defaults, and sovereign debt crises. The only question is when.
A new episode of the weekly roundup podcast just went up covering Japan stagflation, American renters giving up inflationists in congress, and the ongoing bloodbath in commercial real estate. Check it out at Peter Saint Onge dotcom. Okay. We'll be watching. See you next time.
reSee.it AI Summary
Canadians are facing financial challenges due to high taxes, inflation, and expensive housing, resulting in middle-class salaries struggling to make ends meet. The situation resembles the economic struggles in the US, with government spending and environmentalists being cited as contributing factors.
@profstonge - Peter St Onge, Ph.D.
In a sign of what's coming to America, Canadians are getting crushed by taxes, inflation, and housing costs that turn middle-class salaries into barely scraping by. In short, Trudeau has delivered West Virginia wages with houses that cost a million dollars and taxes that would make California blush. What's driving it is the same as here in the US: government spending and rabid environmentalists who want to return us to the stone age.
Video Transcript AI Summary
Canada is facing economic challenges, with stagnant wages, soaring inflation, and high house prices. The Fraser Institute survey highlights 24 ways Canadians are struggling, including stagnant wages, with the average Canadian earning $18,000 less than an American. The OECD predicts Canada will be the worst performing advanced economy until 2060. Business investment has declined since Justin Trudeau came to power in 2014, while government spending and debt have doubled. Government workers are growing at a faster rate than the private sector, with Canadian taxpayers paying the salaries of 4.1 million government employees. Government-run healthcare has also collapsed, with long wait times for treatment. Canadians are increasingly dissatisfied with the size of government and high taxes, blaming Trudeau. There is hope for change in the upcoming federal election, but unions pose a challenge. Dark days are ahead for Canadians and potentially Americans as well.
Full Transcript
Speaker 0: In a sign of what's coming for America, our neighbors to the north are getting crushed by taxes even as Canada soaring inflation and house prices turn middle class salaries into barely scraping by. I've mentioned Canada in recent videos how socialism and activist central banking have delivered an economy that's essentially West Virginia pay with California taxes and $1,000,000 homes. A recent survey from the Fraser Institute lists 24 ways Canadians are getting crushed. Starting with the fact that Canadian wages have been stagnant since 2016, that's 8 years, to the point the average Canadian now earns almost $18,000 less than an American. There's no cavalry coming with the OECD predicting Canada will be the worst performing advanced economy all the way to 2060.
Now the OECD includes some pretty lame company. Most of Europe is deindustrializing, thanks to Greens in Ukraine. Japan is mud laying along as usual. And here in the US, we'd be deep in stagflation if Washington were not buying it out with debt. The worst of that bunch is like being the slowest runner at the body positive marathon.
Canada's actually been nose diving since 2014 when Justin Trudeau first came to power. Business investment tanked from 79¢ per dollar of salary just 55, so that's down almost a 3rd, as 285,000,000,000 of investment capital fled Canada over 3,000,000,000,000 in US terms. What's replacing productive investment? Government. Government workers are growing almost 4 times faster than the private sector.
Thanks to a doubling in government spending and a doubling in debt. Canadian taxpayers are currently generously paying the salaries to 4,100,000 government employees that is equivalent to almost 35,000,000 government workers in US terms. And that comes to 1 in 5 workers in Canada who are paid 31% more than the productive workers they force to pay their salary. In fact, the average Canadian now pays almost half their income to these parasites more than Canadians spend on housing and food combined. As always, the bigger government gets, the worse it gets.
It's most stark in government run health care, which has completely collapsed since COVID with notoriously long wait times going from 9 weeks to 28 weeks even for, quote, medically necessary treatment. In fact, tens of thousands of Canadians flee to America or Mexico paying cash out of pocket instead of suffering in bed for 6 months waiting on hip surgery. So what's next? Brought to you by unchained.com. What's driving Canada's collapse is simple.
Its government is taking over, and its environmentalists have turned into what Black calls a green terror, banning or taxing every productive sector of the economy, especially energy. To give a flavor, one study found environmental mandates alone at 55 $1,000 to the cost of a new Canadian home. Now Canadians can see what's happening. One poll found 74% think government is too big and they're being overtaxed, and they blame Justin Trudeau who is currently among the least popular leaders on earth even worse than Joe Biden. The one way of hope is a federal election next year where apple munching populist hero, Pierre Polieve, is tipped to depose Trudeau.
But even if Pierre wins, he'll be up against unions. Remember, that's 1 in 5 workers who make America's deep state look like a pussycat. So either way, there's a lot more dark days for Canadians, and Americans are not far behind. K. We'll be watching.
See you next time.
reSee.it AI Summary
The author criticizes the recent jobs report, claiming that half the jobs are fake and the other half are government jobs. They believe that government statistics are hiding the fact that the country is hurting, with 3 million jobs being adjusted seasonally and many Americans dropping out of the workforce.
@profstonge - Peter St Onge, Ph.D.
Another "Blockbuster" Jobs report. Courtesy of the most creative statisticians government money can buy. Half the jobs are fake. The other half are government jobs. And there's been zero new jobs for native-born Americans since... 2018 🤯 How do they get away with it? Literally 3 million jobs of "seasonal adjustment" along with 6 million plus Americans who have dropped out of the workforce, likely for life. The country is hurting, and government statistics do everything they can to hide it.
Video Transcript AI Summary
The recent jobs report in the US was touted as a blockbuster, with 353,000 jobs added and positive numbers across the board. However, upon closer inspection, it becomes clear that the job growth is not real. The Bureau of Labor Statistics manipulated the data by slashing the work week, making it appear as if wages were increasing. Additionally, various data series suggest that many of the reported jobs are fake or part-time, with no net full-time jobs created last year. Furthermore, the majority of job growth has been among foreign-born workers, while native-born workers have seen no job growth since 2018. The discrepancy in the numbers can be attributed to seasonal adjustments and potential favoritism. Overall, the reality on the ground contradicts the positive narrative presented by the media.
Full Transcript
Speaker 0: A couple days ago, we got what Zero Hedge called the most ridiculous jobs report in recent history. On the surface, it was a blockbuster. And as with pretty much all jobs reports nowadays, it was a clown show on the inside. So first, the blockbuster. The Bureau of Labor Statistics, whose in house statisticians are among the most creative your tax dollars pay, reported that the US unexpectedly added 353,000 jobs last month.
That was double the Wall Street consensus, meaning either Wall Street really sucks at estimating jobs or Joe Biden's statisticians are just that good. The numbers were stellar across the board with unemployment holding steady and average hourly earnings spiking by 4 a half percent also way beyond predictions. At which point we pull away the curtain. Start with that amazing job growth, it turns out it isn't real. It was magic ed up my BLS, statisticians slashing the work week.
Now, if you pretend there's fewer hours, the pay per hour magically jumps. Not because people were paid more, but because you assumed with no evidence the work week down. In fact, they slashed it all the way down to 34.1 hours, note 40 is full time. Outside COVID lockdowns, that is a number we have not seen since the depths of the 2,008 crisis. In other words, the only way wages are stellar are if you assume that hours are being cut to 2,008 crisis territory.
Why would you do that, two reasons. Either we are actually in the depths of a 2008 crisis, blockbuster or no, or you need some extra budget from the White House and told your decisions to get extra creative. Worse is the jobs themselves. In short, they're not real according to now a parade of data series. In a recent video I mentioned, the Census household survey which actually asks people if they're working.
And that suggests that roughly half the BLS jobs are fake. Fact, according to Census last month, we didn't get a blockbuster 353,000 jobs, we actually lost 31,000. Second data on part time work suggests that, actually, we created precisely 0 full time jobs last year. What jobs we got were DoorDash and second jobs because people cannot make ends meet. 3rd, yet other data, this time by the Wall Street Journal, says the few full time jobs the work created last year, we're mostly government and social assistant.
Things like using taxpayer billions for illegals. Note, if we had 0 net full time jobs, yet half of what was created was government, then the private sector actually shrunk a lot. Note the private sector is the sector that actually creates things. The government does not create. So if private is shrinking, we are getting poorer as a country.
And finally, speaking of illegals, new data as the US economy has created literally 0 jobs for native born workers since 2018. All of the job growth has been foreign born. So how can the numbers be so far off you ask? One word, seasonal adjustment. Fact comparing raw data to the BLS seasonal adjustment, there's literally a 3000000 job difference.
Now seasonal adjustment is legit, say, Christmas time warehouse workers or summertime fruit pickers, but 3,000,000 in statistical adjustment leaves a whole lot of room to do friends for your favors at the White House. So what's next? Brought to you by unchained.com. The 2 most important economic statistics for Joe Biden are jobs and inflation. Both at this point are gained to hilarity.
The facts on the ground are what Americans are saying in opinion polls that things are hard and getting harder, but the media will keep gaslighting and Americans will keep believing what they see with their own eyes. Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
The Davos elite think Trump will win. In fact, they think populism will win across the West. So they're doing everything they can to lock in their revolution, to insulate it from the voters. But it's not working -- already some of their biggest rats are jumping ship. https://t.co/Ytm7xqLJzG
Video Transcript AI Summary
The World Economic Forum elites are afraid of losing and believe they are facing a decline in their influence. Recent events have shown their concerns. NBC reported on the Pentagon's efforts to enact a deep state coup, implying they are preparing for Donald Trump's return. John Kerry spoke at Davos, expressing hope that financial institutions now control the world and politicians cannot stop the green transition. The New York Times published an article stating that there is a consensus at Davos that Trump will win reelection. The elites' ideology has faced backlash due to their extreme views and censorship attempts. Voters are rejecting their ideas, and the totalitarians' institutional capture is crumbling. Florida banned DEI on university campuses, and even JPMorgan's CEO, Jamie Dimon, is urging the elites to listen to Trump and his voters.
Full Transcript
Speaker 0: The communist elites of the World Economic Forum are afraid. They think they're going to lose. Are they right? Have the enemies of freedom peaked? All this week, the collectivist Illuminati who make up the World Economic Forum have been hobnobbing at their annual conference in Davos, Hatching their plans for a worldwide Soviet while incidentally booking every prostitute within 300 miles of Switzerland, Driving the price to $4,400 per night, not a joke.
Happily, this year was different because in contrast to the Davos romps Of these past few COVID bespeckled years, the elite is scared. Just in the past week, we've had 3 glorious data points courtesy of the elites Very own lap dog media. So 7 days ago, NBC published a loving expose on Pentagon efforts to enact a deep state coup, As in they assume they're going to lose and are preparing for Donald Trump. Then 5 days ago, Joe Biden's climate on voice Swiss voter John Kerry gave a speech at Davos how quote, no politician can stop the green transition. As in, Carrie desperately hopes the Davos captured financial institutions now run the world and there is nothing that government by and for the people can do about it.
Finally, on Friday, the New York Times summed up the malaise publishing an article called, quote, a consensus emerges at Davos Trump will win reelection. So if the elites own self assessment is true, it would mean that rarely has an ideology fallen so far so fast from world striding consensus to Better luck next time. So what happened? In short, the Davos Collective took the world to crazy town, especially America and Europe. From open borders to unicorn farts to diversity as The new Jim Crow to front holes and chest feeders, they have poured out garbage and silenced descent.
Last, their censorship industrial complex Failed, thanks especially to Elon Musk, and the millions upon millions who sprang up to exercise their god given right to free speech. Turns out you only need a single venue to speak for the truth to get out there and we all answer the call. Now that we did, It turns out none of it is sticking. Voters are not buying it. Not the inflation gaslighting, not the unicorn farts, the open borders, the front holes.
Not America, not in Europe, certainly not in the rest of the world that never really drank the Kool Aid. Some still pretend to, lest they get expelled from college or fired from Disney, Or in some European countries thrown in jail for misgendering, but fear is a very fragile consensus and it evaporates in the voting booth. So what's next? Brought to you by unchained.com. The voter backlash is coming.
The totalitarians are praying their institutional capture, Especially, finance will lock them in despite losing the very governments that were instrumental in those captures. They will fail because the capture was only possible with government intimidation, sympathetic regulators, bureaucrats, deep state prosecutors. If they lose, then it's down to their astroturf money versus the truth. I will take those odds any day. We are already seeing them crumble in a spectacular.
Florida just banned DEI and all of its 25 university campuses at 6 140,000 students. Few days ago at Davos itself, JPMorgan's Jamie Dimon, CEO of the biggest bank in the universe and hence, a key leverage point for the WEF, Gave a speech demanding the doubles elite listen to Trump and his voters since they've been right about the big issues. You can almost hear the sound Of the WEF's most cherished champions preparing to jump ship. Okay. We'll be watching.
See you next time.
reSee.it AI Summary
California has introduced a wealth tax that could take away a significant portion of affluent residents' assets, potentially driving them out of the state. This move is motivated by the need to cover the costs of illegal migrant benefits and a large budget deficit. The tax may harm the tax base and cities, but prioritize the well-being of migrants.
@profstonge - Peter St Onge, Ph.D.
California rolls out its latest bit of insanity: a wealth tax. It would effectively confiscate roughly one third of the assets of affluent Californians. Obviously chasing them out of the State. Why are they doing this, aside from old fashioned envy? Because California's facing tens of billions in illegal migrant benefits, piled on top of a $68 billion deficit California's already running. So they'll gut the tax base -- and the cities. But by gum they'll have some comfortable migrants.
Video Transcript AI Summary
California is considering implementing a wealth tax, which would impose a 1% tax on individuals with over $50 million in assets and a 1.5% tax on billionaires. The tax would also fund private attorneys to sue wealthy Californians for allegedly underreporting assets. The state is facing a $68 billion budget deficit and has recently announced free healthcare for all illegal migrants. While a 1.5% tax may not seem significant, it effectively confiscates almost a third of rich people's money. This could lead to an exodus of wealthy Californians to states like Florida or Texas. Other progressive states may also follow suit with similar tax measures.
Full Transcript
Speaker 0: If you are still for some insane reason living in the state of California, it may be time to leave. The California legislature is currently taking up their latest bit of suicidal lunacy, a wealth tax. It would impose an annual tax of 1% on the worldwide wealth of anybody over 50,000,000 in assets and 1.5% on billionaires. The billionaire's tax would kick in next year while the millionaires get a 1 year stay. The bill would also pay private attorneys to sue affluent Californians for allegedly under reporting assets, giving them a share of the taxes.
So imagine the joy of random lawyers showing up to sue you over the cost basis of your home renovations. Part time residents would be taxed pro rata for every day they are physically in the state of California. And no, fleeing the state will not work. California will chase you down even after you leave for that final hunk you can check out but you can never leave. So why are they doing this?
Partly because California voters are consumed with rage and envy that there are people who build things instead of stealing wealth and trading it for votes. But mostly because the state of California has spent itself into an abyss with a $68,000,000,000 budget hole. Note that's not including the coming migrant crisis. To give a flavor, the state just announced free health care for all illegal migrants, meaning all 6,700,000,000 people on earth, including free gender reassignment act taxpayer expense for every drag queen in Guatemala. That kind of virtue does not pay for itself.
Now, a percent and a cent and a half tax does not sound like very much. But remember, this is taxing the entire amount. So in practice, rich people grow their money about 5% per year. You can track that over on the Forbes 500. In other words, 1.5% is equivalent to confiscating almost a third of their money.
It's 30% of their annual returns. That means in California, you get to pay a top rate of 51% when you earn it, that includes California's new 14% income tax, and then you effectively hand over 30% of your gains each and every year. You keep the pocket change. Swiss snacks brought to you by unchained.com. California's wealth tax is not a done deal.
It still has to pass and it will be litigated. But keep in mind, they already do effectively wealth tax your house, known as property tax. So I think there's a good chance it would stand. More important, going by the history of the income tax. They will start with the millionaires and very quickly climb down to the middle class.
After all the federal income tax itself, originally applied only to the top 1% of taxpayers who paid 7% top rate. Within 5 years it hit a 73% top rate, and today, almost 2 thirds of Americans pay income tax. And so most likely what comes next is a giant exodus of affluent Californians taking their businesses and their tax base with them to Florida or Texas. Meanwhile, to the extent California serves as a model for other progressive states like New York or Illinois, We could see more of these tax grabs on the way. After all, the progressive mantra, let's make it hard to succeed, easy to fail, because people in distress are the most obedient voters.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
The "Welfare Industrial Complex" is on the rise as new jobs are primarily disguised government spending, making up 56% of the workforce. In states like Illinois and New York, government jobs exceed the total growth of the economy, indicating a shrinking private sector.
@profstonge - Peter St Onge, Ph.D.
The rise of the "Welfare Industrial Complex" Why are GDP and jobs defying slowdown predictions? Because most new jobs -- 56% -- are disguised government spending. In states like Illinois and New York, they make up between 113% and 121% of new jobs. In other words, the rest of the economy is actually shrinking. Only the the government is growing.
Video Transcript AI Summary
The GDP and job numbers are defying predictions of a slowdown because a majority of the new jobs created are in government social assistance and healthcare. Last year, 56% of the 2.8 million net new jobs fell into this category, with states like New York and Illinois relying heavily on welfare jobs. This means that the real productive economy is actually shrinking. Welfare spending may contribute to GDP, but it does not lead to economic growth or make the country richer. With the influx of migrants and the increase in homeless individuals, consumer spending may appear impressive, but it comes at the expense of the economy and the treasury.
Full Transcript
Speaker 0: Why are GDP and jobs numbers defying slowdown predictions? Easy, because most new jobs are disguised government spending. They don't create anything, of course, but they sure do spend and they're about to get a lot worse. A few days ago, the Wall Street Journal ran an excellent article on what they all the, quote, welfare industrial complex. They kick off asking what's driving America's job growth concluding its, quote, government social assistance and associated health care.
In fact, more than half, 56% of the 2,800,000 net new jobs created last year were precisely that, government social assistance and health care. In blue states like New York and Illinois, those welfare jobs make up literally more than all the job gains. So a 113% in Michigan, Same in Illinois, 121% in New York. In other words, their real productive economy is actually shrinking. Without those jobs from just the last year alone, nationwide, we would be close to 5% unemployment.
If you add Back the millions of workers who dropped out during COVID, we'd be closer to 8% unemployment. Now welfare spending is GDP to be sure It will get Paul Krugman popping the bubbly, but it is not economic growth. It's not making us richer. In fact, it's economic deconstruction, converting formally productive people into permanent wars of society. Indeed, if you go into poor areas in many of these states, you'll see literally nothing but welfare services.
So nonprofits, Medicaid paid health clinics, government agencies, with a tiny sprinkling of gas stations and takeout with bulletproof glass. So the productive economy is actually shrinking, but the GDP numbers hide it. All pretty dire, but brace yourself because there's A lot more to come as literally millions of new welfare cases pour in wholesale from what was formerly known as the border. The journal reports that New York City is currently spending $394 per day on every single migrant. That's the price of a nice Disney vacation.
That comes to a 144,000 per year per migrant, which is, of course, far more than Americans make with actual jobs. Possibly more since I can only imagine the games government activist play to hide the money they spend. Add these imported millions To the hundreds of thousands of, quote, drug addled and mentally ill homeless living on the street, that is a quote from the journal, and you've got the makings for some very impressive consumer spending. Plus next brought to you by unchained.com. Those nosebleed trillions are just the Star, since decades of experience, has shown that the more government spends on welfare, the more people go on welfare.
In Joe Biden's first stimulus bill, for example, they poured out nearly forty 3,000,000,000 in housing subsidies to end homelessness as we know it. So what happened? The homeless population shut up by 85,000. While homeless don't cost as much as migrants, they're just 86,000 a year, again, per person, which is also a very respectable salary anywhere in America. Again, that's taking the activists who run government welfare at their word.
As the journal notes, quote, progressive government doesn't do anything on the cheap. Did they note Los Angeles is currently spending $837,000 per unit to build housing for the homeless? So at 1.44 a year per migrant and 86 per ruined life times millions, you get the makings of some fantastic Consumer spending numbers even as the economy and the treasury are gutted. K. We'll be watching.
See you next time.
reSee.it AI Summary
California's financial situation has drastically deteriorated, going from a $100 billion surplus to a $68 billion deficit in just 2 years, with an additional $87 billion on the horizon. This decline has resulted in issues like homeless encampments, malfunctioning windmills, and chaotic cities. The state is losing taxpayers who are being replaced by dependent individuals.
@profstonge - Peter St Onge, Ph.D.
California is going bust, turning a $100 billion surplus to a $68 billion deficit in just 2 years -- with another $87 billion to come. In return, Californians got homeless encampments, broke-down windmills, and Mad Max cities where Kleenex boxes need to be locked up. The few remaining taxpayers are running away, replaced by imported wards of the state.
Video Transcript AI Summary
California is facing financial troubles, with a $68 billion deficit and projected future deficits of $87 billion. The state wasted a $100 billion surplus on various projects and failed to account for a tax filing delay by the IRS, leading to further debt. Only 200,000 taxpayers out of 20 million now fund half of the state's $640 billion budget, and many productive individuals have left the state due to high taxes. California's largest cities are experiencing problems, including tech layoffs and declining home sales. The state is also welcoming a large number of legal migrants who become a burden on taxpayers. This situation serves as a warning for other states.
Full Transcript
Speaker 0: California is going bankrupt because it turns out you cannot eat virtue signaling. In fact, it will eat you along with the suckers who voted for you. A few days ago, The Wall Street Journal reported that after a $100,000,000,000 surplus just 2 years ago, a surplus that was squandered on everything from crony green projects to homeless encampments. California is now staring at a $68,000,000,000 hole with another 87,000,000,000 in future deficits projected. So that comes to a cool $155,000,000,000, enough to buy roughly 5,000,000,000 shovels suitable for cleaning human feces.
For a perspective, that is nearly 4 times Florida's annual budget. So how did California get so bad so fast? For starters, the clowns in Sacramento ramped up Their controlled demolition of the largest state in the nation while squeezing the rich so hard they popped all the way to Dallas. But an odd little IRS quirk opened a loophole that the addicts in Sacramento drove a truck through. So last year, the IRS postponed tax filing for 7 months.
They do this occasionally, but never on this scale or this long. They had done it for storms last December that everybody has Already forgotten about. As the journal puts it, it's not clear why the IRS was so, quote, charitable towards Californians, though a cynic might wonder if there was An ulterior motive, namely to expand the window for brand new IRS agents to audit Californians. The problem is that instead of taking that delay into account and setting aside money, the state of California pretended it never happened, and it blew the 100,000,000,000. It's as if work accidentally sent you 2 paychecks, and you spent it all even though you know you have to give it back.
Now you wouldn't do this if you actually cared about, say, keeping your house, but, of course, the ruling oligarchy in California does not care about such things. So in short, they tricked Californians $68,000,000,000 deeper into debt, so the IRS can have a good hard whack at them. Yes. Many of us do wonder why they keep voting for it. Thing is IRS games is only the start because California has squeezed the few remaining productive people who remain in the state, largely to blow billions on utopias and unicorn farts.
At this point, just 200,000 California taxpayers, that's out of 20,000,000, now fund half of the entire 640,000,000,000 budget. Nearly a 1000000 of those tax slaves ran away last year, going to states that show somewhat more restraint about strangling the people who actually pay taxes. So what's next? Brought to you by Unchained. These gimmicks would all be good fun if California were doing well.
It is not. Its largest cities are descending into Mad Max dystopias, where Kleenex boxes are locked away and women have to walk the dog in an Uber. Tech layoffs are soaring, home sales are crashing, and they're replacing that fleeing million with a tidal wave of legal migrants who get to be a permanent drain on the Californians who have to pay for them. As for the rest of us, California is a gift from heaven, a canary in the coal mine of what not to do. Unfortunately, many other states are following as fast as they can.
Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
Jobs numbers “implode” as job openings plunge 800,000 on the month. Even the cheerleaders at the Wall Street Journal think it’s bad. This matters because jobs are the only statistic saving this economy from recession. If jobs go, it all goes. https://t.co/K2Wggzn63y
Video Transcript AI Summary
The job market is showing signs of decline, with rising unemployment, falling wages, and longer job searches. Job openings have decreased by 800,000, missing expectations by over half a million. The government's numbers are not reflecting the true state of the economy, as many Americans have dropped out of the workforce due to early retirement or government benefits. The Federal Reserve's decision to raise rates could be a mistake, leading to a weaker economy and potential repercussions. It is important to monitor these developments closely.
Full Transcript
Speaker 0: Recession is coming, and government numbers are hiding it. A few days ago, The Wall Street Journal published an article worrying that the job market is failing on all fronts. This matters because jobs were the last man standing in this very nonrecession of hours, and they are now giving up the ghost. Zero heads was more direct saying the job market is, quote, imploding. What knocked the journal off their everything is fine script was a drumbeat of new numbers showing unemployment is rising, wages are falling, Americans are taking longer to find a new job, and they are holding on to bad jobs.
But what really sealed the deal was a huge number that came out just after the journal hit publish job openings. Those were down 800,000 on the month and missed expectations by over half a million. Now you might wonder why Wall Street pays analysts who miss by half a 1000000 jobs, but to be fair, they are working with government numbers here. I've mentioned in recent videos how jobs are the only thing saving this economy. Almost every other number is either recession level or is dragged out of the recession gutter by those jobs numbers.
Of course, a lot of that is smoke and mirrors given that roughly 5,000,000 Americans dropped out of the workforce during COVID, either retiring early or bribed onto the couch by government benefits. Without that, unemployment would be about 6 a half to 7% right now, which is almost exactly where it was at the beginning of the 2008 crisis. Still, even that free lunch is running out. Along with the 800,000 missed openings, the BLS also revised 848,000 other jobs into oblivion, which is really fun since media reports the good news immediately. That all gets a lot of press, and then nobody notices the revisions.
Now for those following along at home, that means we've lost almost 3 a half 1000000 job openings since the Fed started hiking. So that's about 30% of all job openings in the economy. Meanwhile, other real world indicators of the job market are also fading along with it. So workers have stopped quitting jobs, meaning they're afraid of finding another one. Holiday hiring is anemic.
Normally, you get a lot of temp workers. Raises are getting smaller, which is pulling out the last thing that was keeping wages at least close to keeping up with inflation. Finally, continuing unemployment claims, that means people who can't find jobs for longer and longer periods, has been on a relentless climb since September. So what's next? Brought to you by Unchained.
Beyond the ugly spectacle of governments lying about numbers. The risk is that the Fed could be raising rates into a much weaker economy than they think. This could lead to the mother of what economists call policy errors, meaning the Fed goes way too far and then it has to whiplash back. To be fair, the Fed has done that in almost every recession because it's incompetent, so it should not be a surprise. But given the magnitude of this one, it could get very ugly.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
What if Argentina shuts its Central Bank? Removing the central bank may seem challenging, but history shows it's possible. This move could finally solve Argentina's inflation crisis and revive the economy, potentially inspiring other nations to follow suit.
@profstonge - Peter St Onge, Ph.D.
What happens if Argentina shuts its Central Bank? Will Argentinians be stacking gold coins while unemployed bankers shine shoes? Recent history in other countries suggests that getting rid of the central bank is easier than it looks. And it would certainly end Argentina’s inflation nightmare and set the economy back on the road to prosperity. It could even inspire dozens of other countries.
Video Transcript AI Summary
Javier Mele, the newly elected leader of Argentina, plans to close the central bank and adopt the US dollar. This move could significantly reduce inflation, promote economic growth, and strengthen the country's banks. Dollarization has been successful in other countries, such as Ecuador and El Salvador, where inflation dropped drastically and economic growth improved. While some regulatory functions would be transferred to the Ministry of Finance, the manipulation and bailouts associated with the central bank would be minimized. Although Mele lacks a congressional majority, the track record of dollarization and his determination suggest that he may be able to accomplish this change. This would provide relief from Argentina's long-standing issues with monetary governance.
Full Transcript
Speaker 0: What happens if Argentina gets rid of its central bank? Will Argentineans be carrying around bundles of fresh greenbacks or, better yet, gold coins while former bankers shine their shoes. In just over a week, Javier Mele takes office after his shock win in the Argentinean election. He's promising to close the central bank and ditch the local currency. So what would that look like?
In short, going by other dollarizations, it would reduce inflation dramatically. It's currently running a 143% in Argentina. That would lead to much faster economic growth and rising prosperity, and it would make Argentina's banks stronger, reducing the risk of a financial crash. Put it together, an Argentina would go from perennial basket case to well on its way to prosperity? Of course, the next question is, will it happen?
There, the punch line is dollarization is not nearly as hard as it looks, meaning Argentina could inspire many other countries to follow suit, many of which are running inflation of 40% or above. So first, what are the functions of a central bank? What would it mean to get rid of it? The 2 most important are manipulating the money supply, mainly with interest rates, and banking regulation. Regulation in this context meaning, failing out insolvent banks.
Put them together and you get the central bank cycle of boom, bust, bailout. Of course, Argentina Central Bank has been one of the worst in the world at this, delivering no less than 5 hyperinflation since 1975. So what happens if you close it? Well, if you get rid of it altogether and return to gold, then it's easy. You get steady growth, stable prices, and widening prosperity.
Alas, returning to gold is a radical prospect for most voters. What Javier Mele actually proposed was a kind of halfway house, dollarization, meaning Argentina adopts US dollar. This would convert Argentina from that perennial basket case to, at least from a monetary perspective, no worse than the Fed. Compared to hyperinflation, that's a heck of a deal for the moment at least. So what happens if he does shutter the central bank and adopt the dollar?
Some trivial regulatory functions will probably go to the Ministry of Finance. Things like oversight of payment systems, cross bank payments, things like that. But by outsourcing the actual currency, those 2 great central bank functions, the manipulation, the bailouts go from Argentinian levels to mere Washington levels. Still there, but much improved. The final question is, can he do it?
While Malay lacks a congressional majority, dollarization actually isn't as radical as it looks. In fact, both Ecuador and El Salvador dollarized recently under normal governments. They did not need a lion haired Ron Paul fan with a chainsaw. In both countries, it was a resounding success. Inflation went from between 15 40% to just 1 a half percent.
Compare that to Argentina's 143. Meanwhile, post dollarization economic growth went from among the worst in Latin America to among the best, while Argentina continued to lose another couple decades of stagnation. To us next, brought to you by Unchained. Given Malay's passion and the splendid track record of dollarization, I actually think he'll get it done. Of course, the dollar has its own problems, which are getting worse, but it would give the Argentinian people a break from the abysmal monetary governance they have suffered for going on a century.
Read the full article including more history and the data at profstange.com. Okay. We'll be watching.
reSee.it AI Summary
Half of US workers earn less than $41k/year ($3.4k/month). After paying $1.9k for rent and $528 for a used car, they're left with just $894 for everything else: food, utilities, insurance, clothes, car repairs, sick kids, and an occasional dinner at McDonald's.
@profstonge - Peter St Onge, Ph.D.
Half of all American workers now make under $41,000 per year. That comes to $3,400 per month. Given the median rent is $1,978 and used car payment is $528, that leaves precisely $894 for everything else -- food, utilities, medical insurance and premiums, clothes, car repairs, sick kids, and that once a year dinner out at McDonald's.
Video Transcript AI Summary
Recent data from the Social Security Administration reveals that half of American workers earned less than $41,000 last year, even lower than pre-pandemic levels. With the median wage at around $3,400 per month, expenses like rent, car payments, and basic necessities leave very little for other essentials. The decline in American productivity since 2000 is attributed to manipulated interest rates and increased government spending. This has led to economic booms followed by recessions, while bureaucrats use taxpayer money for regulatory mandates. Unfortunately, these policies are continuing, with projected interest rate cuts and soaring federal spending. If we don't change course, the situation will worsen, potentially leading to a decline in the economy.
Full Transcript
Speaker 0: The spicier corners of the Internet have been jammed recently with videos of young people lamenting how it is impossible to get by even working full time. How they grew up in a 4 bedroom house their parents owned, and now they are coming up on 40 years old, eating ramen with roommates watching HGTV reruns of the glamorous lives of people who do own houses. Well, now we've got some numbers to go with that. A few days ago, the Social Security Administration released new data on wages reporting that half of American workers made under $41,000 last year. Adjusted for inflation, that's actually lower than it was before the pandemic.
And keep in mind, that's using official inflation numbers. Also, keep in mind, incomes rise with age, so that median worker is going to be statistically round about 40. That median wage comes to roughly $3,400 per month. According to rent.com, the median rent in the United States is currently almost $2,000. The average car payment even for a used car is five $28.
That leaves precisely $894 for food, utilities, medical insurance, and premiums, clothes, car repairs, sick children and that once a year dinner out at McDonald's. So, yes, it is a struggle. And don't even think of buying a house. The cost of a mortgage on the median house at the moment is nearly $3,000, which would consume roughly 90% of that median income, you would need to shoplift your groceries to really make that one work. Now put it together and the numbers say that the 40 year old with roommates and ramen is spot on for millions of young Americans.
So how did we get here? Well, what makes us richer is productivity, an ever since 2000, American productivity has been in free fall. It's actually widely discussed even by mainstream economists. Essentially, something broke in the economy. So what broke?
Easy. Manipulated interest rates and soaring government spending. Between 1954 and 1999, real interest rates, that's after inflation, were roughly 2%. Since 2000, they've been negative 1%, meaning that you were paid to borrow. So those low rates meant easy money flowed to garbage businesses that feasted on the cheap money, but didn't actually make the economy grow.
We got a series of tissue fire economic booms that flared up and burned out, knocking out 1,000,000 each recession. Meanwhile, soaring government spending meant more and more of the productive economy is stolen by bureaucrats and used to chain the rest of us with regulatory mandates from climate to diversity that knock out what's left. Since 2000, federal spending has grown by nearly half as a share of the economy with state and local on top of that. We get to survive on the leftovers. So what's next?
Brought to you by Unchained. Unfortunately, the policies that got us here are accelerating. Interest rates are high at the moment since the Fed got caught with its hand in the cookie jar, but financial markets are already projecting lightning rate cuts next year as the Fed scrambles back to its day job pumping out inflation. Meanwhile, Federal spending is soaring with the deficit this year double the size of last year's $1,000,000,000,000 take. In fact, we're getting to the point where a trillion is the table anti in Washington.
If we do not change course, which doesn't look like we are, it will not be stagnation anymore, it will be outright decline. Okay. We'll be watching. See you next time.
reSee.it AI Summary
Consumers are tapping into their 401k accounts to cover expenses, with hardship withdrawals surging 30% to 3.6 million. Eviction, foreclosure, and medical bills are the main reasons. This trend has reduced the average 401k balance to $107,700, providing just $448.75 per month in retirement. Spare a thought for those without jobs.
@profstonge - Peter St Onge, Ph.D.
Now we know why consumers are spending -- they're raiding the 401k. Hardship withdrawals from retirement accounts soared last year by 30% to 3.6 million. The top reasons are avoiding eviction or foreclosure and unpaid medical bills. This brought the average 401k balance down to $107,700 -- at 5% that's enough to provide precisely $448.75 per month in retirement. Keep in mind that's workers -- we can only imagine what's happening to people who don't have a job.
Video Transcript AI Summary
Hardship withdrawals from retirement accounts are on the rise, with 2.3% of American workers taking such withdrawals last year. For those with a 401(k), the number was even higher at 2.8%. The top reasons for these withdrawals were to avoid eviction or foreclosure and to pay unpaid medical bills. Additionally, 1 in 6 American workers now have outstanding loans on their retirement accounts. This trend is a result of Americans tapping into their savings due to the higher cost of living and the depletion of extra savings generated during the pandemic. These withdrawals are not only impacting individuals' finances but also dragging down retirement savings. Congress plans to introduce a new rule in 2024 to make it easier to withdraw retirement savings, which could have implications for consumer spending and retirement security.
Full Transcript
Speaker 0: Yesterday, Bloomberg reported that hardship withdrawals from retirement accounts are soaring. Turns out, now we know why consumers are spending their rating the four zero one k because cat food is, in a pinch, edible. According to a study by Fidelity Investments, last year, 2.3% of American workers, that's almost a1000000, took a hardship withdrawal from their retirement accounts, which is up 30% on the year. It was even worse for those with a four zero one k. For them, 2.8% took a hardship withdrawal.
Including so called in service withdrawals, the number was 3.2%. Why are they withdrawing? The top two reasons given were avoiding eviction or foreclosure, so losing their house, and unpaid medical bills. This point, fully 1 in 6 American workers is carrying an outstanding loan on their retirement accounts, which is up nearly half a million on the year. As Bloomberg put it, quote, Americans are increasingly tapping their retirement savings amid higher cost of living pressures, adding that Americans outside the wealthiest 20%, so the bottom 80% of us, have, quote, run out of extra savings generated during the pandemic and now have less cash than when COVID began.
Keep in mind, these are Americans with at jobs, so we can only imagine what's happening to people who don't have full time income. So what's next? Brought to you by Unchained. The background here is pandemic savings soared propping up consumer spending, but that is now apparently running out. Hardship withdrawals now join record credit card balances paying 21% interest as worrying signs that Americans are draining out financially.
A recent survey found that 57% of Americans can't cover an unexpected $1,000 cost, and now millions more are on their way. When they are tapped, they will stop spending, dragging down receipts across the economy, and so much for the soft landing. More important, soaring withdrawals are pulling down retirement savings. So the average four zero one k balance was just over a 107,000 last year, that's down 4,000 in just 3 months. If you're earning 5% returns a year, 107,000 would give you a monthly retirement income of precisely $448.75.
Even with Social Security, that's just over 2,000 to live on. So imagine living on 2,000 with no job right now. Finally, congress plans a new rule in 2024 to make it even easier to withdraw retirement savings. Millions of Americans likely will. That would give a boost to consumer spending just in time for the election.
It could even soften that landing at the expense of 1,000,000 more drained out at retirement age. Out of the statistics I talk about day to day can seem dire, but over time, like grains of sand, they add up to a catastrophe that, as always, nobody saw it coming. Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
Central banks exist to create inflation. As much as the people will tolerate. What happens when that process goes runaway? This week, we revisit the Weimar hyperinflation. The food shortages, the families selling off heirlooms, the gangs roving the countryside beating up farmers.
Video Transcript AI Summary
In this video, the speaker discusses the hyperinflation that occurred in Germany during the 1920s. The German mark lost its value due to the government's decision to go off the gold standard during World War I and run massive deficits. This led to a significant increase in inflation. The situation worsened when the government halted reparation payments and the central bank started printing more money. Prices skyrocketed, unemployment rose, and people resorted to extreme measures to cope with the hyperinflation. The hyperinflation only ended when the central bank stopped issuing new money. The speaker then draws a parallel to the current situation, suggesting that government control of money can lead to inflation and emphasizes the importance of separating state and money.
Full Transcript
Speaker 0: In last week's newsletter, I wrote about my fear that we are repeating the 19 seventies stagflation. This week, inspired by Thorsten Pollet, I cover an worst case, Germany's 19 twenties hyperinflation. The Weimar hyperinflation is one of the most talked about episodes today. E of course, paper money hyper inflates all the time. Argentina is currently running a 143% inflation, a key reason for Javier Millais win last week.
Before World War one, the German mark had been backed by gold. But during the war, e German government went off gold to run massive deficits. Total public debt went from 5,000,000,000 marks in 1914 to a 105,000,000,000 in 1918. This led to a 115% inflation, so about 20% per year, but that was just the beginning. The war had wiped out nearly half of German industry, saddled it with massive reparation payments, and the new socialist government wanted to hike spending.
They halted reparation payments to make room, which led France and Belgium to seize Germany's main industrial region. The government encouraged workers to resist promising to pay all of their wages. E this turned out to be the bite from the apple. So starting in May of 1923, the central bank cranked up the money printers. Physical currency doubled in a single month, then it rose 40 fold in 3 months, then it rose a 1000000000 fold, not a joke, by Christmas.
Prices, of course, soared. A loaf of bread cost 200,000,000,000 marks that was roughly double the preinflation international debt for a loaf of bread. Germans would rush out on payday to spend the money before it inflated away by the end of the day. E housewives use bundles of marks as firewood. A dollar bought 4,200,000,000,000 marks as American exchange students in Berlin e use their food allowances to buy up houses.
Unemployment rose to nearly 30%, and even middle class Germans were selling off their family heirlooms. In the countryside roving gangs on bicycles beat up farmers, killed their livestock out of spite, and stole food. E the hyperinflation only ended when the central bank was forced to stop issuing new money to fund the government deficits. E the Reichsbank massively reduced new issues, revalued the mark, and it stuck. The hyperinflation was over.
So what's next? Brought to you by Unchained. E like the Federal Reserve, the Rice Bank was independent on paper. But given governments always control central banks, they are never truly independent. E that means when government spending takes off, so does inflation.
During COVID lockdowns, the Federal Reserve printed nearly 5 trillion e two finance federal deficits at 1.1 in $3 had fresh ink. It delivered what it always does, out of control inflation with deficits now e once again threatening to restart the money printers. So what is the solution? Simple, separation of state and money. E individuals only strike money that holds its value.
Otherwise, people will not accept it, whether it's gold or Bitcoin. Only the state can hyperinflate. And as long as the state controls the money, it is always a catastrophe waiting to happen. E once government controls the money, we all know how the book ends. It's just a question of when.
Read the full article with charts and links to some great reads e
reSee.it AI Summary
Austrian economics, my preferred model, differs from mainstream economics. It eliminates government bribes, offering a unique perspective on the economy that prioritizes liberty. For a detailed understanding, visit http://profstonge.com.
@profstonge - Peter St Onge, Ph.D.
I’ve gotten requests about Austrian economics, which is the model I use to understand the world. Since Austrian isn’t well known, I thought I’d sketch how it differs from mainstream economics. In short, Austrian economics is economics without government bribes. And it turns out once you take government bribes out, economics gives a very different model of the economy, one that puts liberty front and center. Read the full article with illustrations and some great books and articles at http://profstonge.com!
Video Transcript AI Summary
Austrian economics, which focuses on liberty and excludes government involvement, differs from mainstream economics. The field of economics was co-opted by the government in the 1800s, starting with Prussia, while Austrian economists continued to study how economies work. Austrian economics uses logic and praxeology (the study of human action) to understand human behavior. Key axioms, such as action having a purpose and people differing in skills and preferences, can deduce the entirety of economics. The axioms also imply that liberty maximizes happiness, with no role for government beyond protecting our ability to choose. Austrian economics tends to lead to a libertarian worldview. Protecting liberty is an ongoing battle, but it is a worthwhile pursuit.
Full Transcript
Speaker 0: I've gotten some questions about Austrian economics, which is the model I use to understand the world. Since Austrian is not well known, I thought I would sketch out how it differs from mainstream economics. In short, Austrian economics means economics without government bribes. And it turns out that once you take the government bribes out, economics gives a very different model of the world, one that puts liberty front and center. So economics has been around for centuries as a nongovernment field.
But starting in the 1800, the field of economics was co opted it by government starting with Prussia. The German speaking world dominated economics that time, and the Prussian saw economics as useful propaganda, which could help them take over the economy for crony bankers, industrialists, and activists. While Prussian economists were trotting the road to serfdom, it was a very different story for the poor Austrians, who were not on the government payroll, so they spent their days doing what economists had done for centuries, trying to understand how economies actually work. So why people buy, sell, trade, interact, work, produce, or destroy? In contrast, the Prussians became what Murray Rothbard called the intellectual bodyguard of the regime, or as Nobel laureate James Buchanan put it, camp following Horace.
This takeover reached Britain in America in the Keynesian Revolution in the 19 thirties, after which mainstream economics, universities and all, became effectively government propaganda. So with that background, what makes Austrian different? The classical or Austrian approach is to use logic it to understand human behavior. In Austrian, this is called Praxeology, so the study of human action. Concretely, Praxeology uses key axioms.
An axiom him as an obviously true thing from which you can logically deduce all of economics. These axioms are first, that action has a purpose, this, so people do things because they think they will benefit. People are not just billiard balls or rocks. Number 2 is that people differ, say, in skills and preferences. This makes it profitable to trade and to hire each other.
Number 3 is that leisure is good, meaning people will not work unless it is personally worth the effort. Amazingly, these 3 axioms can deduce the entirety of economics. You do not need dozens of books written in calculus. Further, the axioms imply that the way to maximize people's happiness is liberty, for the government to do absolutely nothing beyond protecting us from force. I go through some illustrations in the article, but the key implication for government policy is there is that there is no role for government beyond protecting our ability to choose and otherwise staying out of the way.
Now this implies a libertarian worldview not because it's required in Austrian economics, but because just as studying physics makes you believe in gravity, studying Austrian economics tends to make you believe in liberty. So what's next? Brought to you by Unchained. What's next is Austrian economics, like Liberty itself, will always be at a disadvantage because governments channel 1,000,000,000 to their camp following whores. Yet the people always want liberty, they always want the prosperity liberty Brings so that they and their children can pursue their dreams and spread justice in the world.
Protecting liberty is a never ending battle, but to me, anyway, it is the most sublime battle one could join. Check out the full article with illustrations and some great books and articles for learning more at profseintange.com. Okay? We'll be watching. See you next time.
reSee.it AI Summary
Biden aims to boost World Bank lending to counter China's influence, despite a $2 trillion budget deficit. Americans have long funded global organizations, only to be targeted with their own money. It's time to reconsider our involvement.
@profstonge - Peter St Onge, Ph.D.
Biden wants to ramp-up World Bank lending by tens of billions to match China's global friend-buying. Tens of billions paid from a federal budget that's already $2 trillion in the hole. From the World Bank to the IMF to the United Nations, Americans have been funding these socialist globalists for 80 years. We get fleeced, then they use our own money to attack us. It's time to pull out.
Video Transcript AI Summary
The Biden administration plans to expand the World Bank to compete with China's influence in third world countries. China has been outpacing the World Bank in lending money to these countries, and the US wants to catch up. However, these loans often go unpaid, resulting in billions of dollars being written off. Chinese banks have started reducing their lending due to the lack of repayment. Despite US taxpayers having no choice but to contribute to the World Bank, more trillions of dollars are expected to be given to international organizations like it. The speaker suggests that the US should withdraw from the World Bank, IMF, and United Nations, as they believe these organizations exploit American wealth for woke ideology and benefit a small donor class and third world dictators.
Full Transcript
Speaker 0: The Biden administration wants to massively grow the World Bank to compete with China. As always with Washington's galaxy of taxpayer fleecing international organizations, hold on to your wallet. The other day, the Financial Times of London published a breathless write up of the Biden administration's new plan to expand the World Bank by tens of 1,000,000,000 of dollars per year. That money of course comes from you. Biden's cronies dress it up in sweet nothings about global inequality, but everybody knows why they are doing it, China.
For years now, China has been eclipsing the World Bank when it comes to bribing and bailing out third world countries, lending out a 125,000,000,000 every year, versus a puny 40 for the World Bank and friends. To put that in perspective, Ukraine got a 100,000,000,000 in 2 years, that's 50 per year, while the World Bank is giving out 40 every single year, which Biden wants to increase and has been handing out money since 1944. Now the World Bank together with the IMF were originally set up in 1944 to lend money to poor countries. In theory to help those countries get rich, but in reality, so the US could control them. Pretty much what China is doing today.
In theory, that money would be repaid, but of course, these are government loans, so they are defaulted and the billions written off. Converting the World Bank from colonial enterprise into just another money siphon from middle class Americans to third world dictators. Enter China, which decided it liked the original colonialism idea, so they ramped up spending. The Chinese were popular since, as the Wall Street Journal puts it, quote, they don't ask awkward questions about corruption, human rights, or environmental impacts. Or as Larry Summers colorfully put it, China comes to Africa with a checkbook, the US comes with a lecture.
Final twist, Chinese banks actually started pulling back lending last year, because they are rediscovering that political loans to third world dictators don't get repaid. You may as well kiss those 100 of 1,000,000,000 goodbye. US taxpayers, sadly, don't have a choice. The World Bank tells us how much to give them. So what's next?
Brought to you by Unchained. What's next is yet more trillions to failed international organizations like the World Bank, on top of our permanent wars that seem to breed at this point. A few months ago, I did a video on the globalist push to hand out north of $5,000,000,000,000 to third world dictators in the name of climate, so another 100,000,000,000 for the World Bank is chump change. They will be back for more. How to fix it?
Simple. The US should pull out of the entire 1944 order. The World Bank, the IMF, the United Nations. These were a bait and switch on the American people that put us in chains and siphons our wealth, so woke ideology can be exported to Africa. There have been many empires in history, but it's hard to find one quite so stupid as today's American empire, which literally pays our tributaries, fleecing our own people, at the behest of a tiny donor class and their pet third world dictators.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
IMF admits inflation will persist for years, contradicting earlier claims of transitory nature. Stagnation looms due to ineffective rate hikes. Solution proposed: increased government spending. Echoes of the 70s, but with less competent leadership.
@profstonge - Peter St Onge, Ph.D.
IMF now says inflation will last for years -- so much for "transitory" 🤡 They also now predict years of stagnation to go with it. Caused by the rate hikes that are failing to stop it. Their solution, of course, is yet more government spending 🫡 So we're basically replaying the 70's but with dumber people in charge.
Video Transcript AI Summary
The IMF predicts that global inflation will continue for years, with 2023 inflation projected at almost 7% worldwide and 2024 at almost 6%. The IMF also forecasts slow global growth, particularly in Germany, Italy, the UK, and Japan. The problem lies in the central banks' decision to crush the private economy instead of reducing government spending, which has led to strangled credit and deepening stagflation. The IMF, however, blames tight labor markets and inflation expectations. The IMF's recommendations for more government spending, particularly in the green transition and improving food security, will likely exacerbate inflation and slow economic growth. In conclusion, expect slower growth and higher inflation for years to come.
Full Transcript
Speaker 0: Transitory inflation just got a big extension as the IMF came out with its latest global predictions. Now saying that global inflation will last for years. Specifically, they forecast that 2023 inflation will come in at almost seven percent worldwide, and it won't get much better in 2024 at almost 6% worldwide. Note, that would make it 5 years and counting for this very transitory inflation of hours. Also note, The IMF has consistently under predicted inflation.
They work with central banks after all, so it could be even worse. To go with all that inflation, the IMF is now also predicting slow growth worldwide. In other words, we are looking at stagflation on a global level. With growth barely keeping up with population in the rich countries averaging just 1 a half percent for 2023 and falling even lower in 2024. They predict particular weakness in Germany, which is de industrializing fast, Italy, which is a financial basket case, The UK, which is barely keeping afloat and for Japan, which seems to be ramping up its heretofore leisurely descent into oblivion.
The anemic growth of course is tied to the inflation. After printing so many trillions to buy lockdowns, the World Central Bank Cartel chose to crush the private economy instead of turning down the government spending. The problem is crushing the productive economy is not doing the trick. With inflation now rising again, so just 3 months ago, for example, the IMF was predicting 5.2% Global inflation next year, and now they are closer to 6. So every bump in inflation means more strangled credit down the pike, taking growth and jobs down with it and deepening global stagflation.
Now given the IMF works for governments, naturally, they do not blame government spending nor the money printers. Instead, they obediently blamed the victim, so tight labor markets, meaning workers asking for a raise, or inflation expectations, meaning workers, companies, and households raising prices to survive inflation. So what's next? Brought to you by Unchained. What's next is inflation is increasingly looking like it will stay for years.
It's already gone from a 2 week visit to moving in and redecorating the living room, all whilst organizations like the IMF are drooling at their Chance to make it worse. How? In the very same report confessing that government fueled and central bank finance spending is driving the world into stagflation, the IMF lists out recommendations filled not with controlling spending in central banks, but with central planner fantasies about yet more inflation pumping government spending. These central planner utopias include a renewed push on the green transition that replaces cheap fossil fuels with comically expensive renewables along with plans for potentially trillions going to, quote, increase resilience and improve food security, which are both code for handing trillions to poor countries. Both would naturally raise inflation and slow economic growth, but let no crisis go to waste.
In short, our ruling clowns are finally admitting they broke it, that we are in for years now of stagflation, And their solution is to break it some more. As for the rest of us who pay their salaries and suffer their policies, expect Slower growth and higher inflation for years to come. Last time we were here in the 19 seventies, we got lucky with Paul Volcker, who finally fixed it with drastic rate hikes. This time, we could be waiting a lot longer. Okay.
We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
Jerome Powell just did something very scary: He criticized Congress. All through the $6 trillion Covid spending orgy Powell was desperate to never, ever criticize the boss. Now suddenly he's got a spine 🤔 A cynic might say he's afraid something's about to break and needs some personal cover.
Video Transcript AI Summary
Jerome Powell, the Fed chair, criticized federal spending, stating that the current path is unsustainable. This is significant because Powell has been supportive of Congress's spending habits. The US is facing massive deficits and increasing debt, which is draining the economy and posing a threat to the financial system. The Fed's role is not to manage the economy but to print money and deliver it to Wall Street and Congress through cheap debt. Powell's criticism is noteworthy as it shows concern about excessive printing. However, Congress continues its spending spree without any checks or balances. The media fails to address this issue, leaving most Americans unaware of the impending crisis.
Full Transcript
Speaker 0: Jerome Powell did something very scary the other day. He criticized federal spending. When the spending mouthpiece complains, you know it is bad. An event hosted by the Economic Club of New York, the Fed chair delivered his usual fortune teller shtick amid cloudy stars and dancing data. But 1 sentence stuck out criticizing Federal spending with Powell intoning, quote, the path we are on is unsustainable.
We'll have to get off that path sooner than later. Now this is comic level understatement of the fiscal death vortex into which America has fallen, With $2,000,000,000,000 deficits as far as the eye can see, and Congress itself now forecasting 144,000,000,000,000 in debt in the next 20 years. All while debt service, recession and wars pile on to drive it even higher. But comical or no, this is a big step for a Fed chair Who has been noteworthy in the enthusiasm with which he tongue bathes the big spenders in Congress? To give a flavor, you can find a clip from June of a reporter asking Powell if Federal spending is part of the inflation problem.
Where Powell acts like you just insulted his wife, fuming, quote, we don't give advice to the government, we take spending as it comes, stick it in our model, Along with a 1000000 other things. Now, Powell is not actually dumb enough to think that $2,000,000,000,000 deficits is just one of a 1000000 other things. He knows Federal spending is a fiscal black hole that is sucking everything in. It drains trillions from the productive economy, And going by the 10 year bond, it is now threatening catastrophe on the entire financial system. So why does Powell why?
Because the Fed's job is not to manage the economy, it's not as the Fed claims to carefully balance supply and demand and just the right amount of money, So that America grows, not too fast, not too slow, but just right. Alas, that is all a children's story. The Fed's real job is to print As much money as the people will tolerate. To seize via inflation, what Washington cannot seize via taxes. And to deliver the proceeds first to Wall Street, then to Congress with cheap debt, and finally to the rich investors who own all of that debt.
Thing is this entire beautiful shell game depends above all on the goodwill of Congress. The Fed needs Congress to leave it alone, so it can steal in peace. So no matter how reckless Congress is being, the Fed dutifully plays along. Meaning it is a big deal, when Jerome Powell Summons the will to criticize his boss. So what's next?
Brought to you by Unchained. What's next is when the professional counterfeiter Is worried about too much printing, it is a concern. For now, Powell is still talking like a cat man, hemming and hawing about getting off paths sooner than later, Perhaps even to cover his butt for what's next. Alas, Congress does not care what's next. There is no guardrail, no countervailing force to limit Congress is spending orgy.
The media certainly doesn't call them out. Meaning, most Americans may have a vague sense that Washington spends a lot of money, but they have no idea a crisis is coming. And so Congress will keep careening off the fiscal cliff With Jerome Powell's sugar coated butt covering, a footnote on the way down. Okay. We'll be watching.
See you next time.
reSee.it AI Summary
This year's federal deficit is much larger than claimed, growing twice as fast. A clever accounting trick counted student loan cancellation as revenue. The deficit now stands at $2 trillion, up 40% from last year. Congress may be underestimating the debt, projecting $144 trillion by 2053.
@profstonge - Peter St Onge, Ph.D.
Turns out this year's federal deficit is a lot bigger than they claimed, and growing twice as fast. Thanks to a cute accounting gimmick that counted student loan cancellation as revenue. That means our deficit is already $2 trillion -- up 40% on a year ago. And it means Congress promising $144 trillion in debt by 2053 could actually be low-balling.
Video Transcript AI Summary
The Federal deficit is much larger than reported due to the way Biden's team hid student loan cancellations. The deficit for the previous fiscal year was $1.7 trillion, a 20% increase from the previous year. However, the actual increase was $600 billion, making the deficit $2 trillion. This puts the US on track to be $45 trillion in debt by 2033 and $144 trillion by 2053. Debt service, recessions, and wars further contribute to the deficit. Debt service costs are rising, recessions increase spending and decrease tax revenue, and wars add to the financial burden. With additional plans for global warming funds, corporate welfare, and welcoming illegal immigrants, the Treasury will continue to be looted until there are consequences.
Full Transcript
Speaker 0: Recently, the Wall Street Journal reported that the Federal deficit is actually a lot bigger than it looks, because of the odd way that Joe Biden's handlers hid a fat chunk with their student loan bailout. Now the deficit was already looking pretty dire, hitting 1,700,000,000,000 for the fiscal year that just ended few weeks ago. That was up from 1,400,000,000,000 the previous year, so about a 20% jump, which is pretty big for 1 year. Even that number was putting us on track according to Congress's own bean counters at the CBO, to 45,000,000,000,000 is in debt by 2033, and wait for it, a 144 trillion by 2053. Well, it turns out that was an understatement.
Because of what the journal calls the odd way Biden counted student loan cancellations. Essentially, when the Supreme Court struck down Biden's loan handout, the 333,000,000,000 they were going to give away got counted as a spending cut. Which would be like me thinking about buying a Corvette, my wife tells me no, so I brag that I just made $68,000. Settled shell game means the deficit last year wasn't up 300,000,000,000, 1.4 to 1.7, was actually up six 100,000,000,000, that's a 40% spike on the year. Taking it to a cool 2 trillion and dramatically accelerating Washington's $144,000,000,000,000 debt utopia.
I mentioned in recent videos that even those numbers are a pipe dream for three reasons, debt service, recession, and wars. On debt service, the government is now paying almost twice in interest, what it was paying 18 months ago, projecting past a trillion per year and rising fast. Meanwhile, every recession hits the deficit hard. People who don't have jobs can't pay tax and recessions send federal spending soaring as governments hand out fresh trillions. So going by recent recessions, these would bring the annual deficit closer to 4 to 5 trillion.
Then of course, the wars. We seem to be notching 1 world war per year, that for some reason American families have to pay for. Just this week Biden and Yellen gleefully waved off fiscal concerns about paying for 2 wars, saying, why no? We can afford them all, meaning you can afford them all. So toss all that in, and even the 144 trillion is starting to look very optimistic.
So what is next? Brought to you by Unchained. What's next is we are in a fiscal death spiral and our ruling clowns are stomping on the gas. Few weeks ago, I mentioned a fresh $5,000,000,000,000 plan to hand out global warming money to third world countries. We've got corporate welfare coming out Washington's wazoos, much of it to blow up things overseas.
And of course, Joe Biden has now welcomed 7,000,000 illegal immigrants to our welfare industrial go complex. All of it with no end in sight. So yes, they will keep looting the Treasury. In fact, they are speeding up, will keep going until either they're voted out, which is a remote prospect given both parties are in on the game, or until they break something whether financial markets or what remains of the US dollar, at which point voters rebel whoever is counting the votes. Is okay.
We'll be watching. See you next time.
reSee.it AI Summary
China invests in global resources and infrastructure through its "Belt and Road" program, controlling European ports and owning vital resources in Africa and Latin America. In contrast, America prioritizes military actions, resulting in wasteful spending.
@profstonge - Peter St Onge, Ph.D.
While America wastes trillions on wars, China puts its money into buying up critical resources and infrastructure around the world. Beijing's "Belt and Road" program already controls four major ports across Europe. And owns critical mineral and oil resources in dozens of countries in Africa and Latin America. Washington, meanwhile, blows stuff up.
Video Transcript AI Summary
China is positioning itself to replace the US as the world hegemon by hosting a summit attended by 130 countries, including Vladimir Putin. The summit celebrated the 10th anniversary of China's belt and road initiative, which has invested $1 trillion in infrastructure in 70 countries. This serves to make China's exports cheaper and buy countries out of the US orbit. China offers a menu of infrastructure projects, such as ports, trains, power plants, and telecom networks, in exchange for influence. Chinese companies also gain control over the infrastructure they build. China is selling US treasuries and cracking down on US firms in China, suggesting it sees conflict with the US as likely and potentially beneficial.
Full Transcript
Speaker 0: With America distracted by 2 wars, perhaps with more to come, China is making a play to replace the US as world hegemon. Last week, China hosted a summit attended by 130 countries, which is most of the countries in the world that gave a place of honor to Vladimir Putin in a clear middle finger to the US. The summit was to celebrate the 10th anniversary of China's so called belt and road initiative, which is billed as a modern Silk Road that has so far plowed $1,000,000,000,000 of Chinese infrastructure investment into some 70 countries. These Chinese Trillions serve two purposes. 1st, to make China's exports cheaper since they can run through modern ports and trains that run on time, instead of the crumbling ports and railroads in third world countries like Kenya or Ohio.
But there's a second purpose, to buy countries out of the US orbit. As Larry Summers put it, when the US comes visiting these countries, it brings a lecture, a list of demands about climate unions or LGBT policy. But when China comes, it brings a gigantic checkbook for goodies, ports and trains, power plants, telecoms, networks, roads, even apartment complexes. Essentially, China brings a menu. You can have a port and a phone system or a railroad hydro dam and 3 apartment complexes mix and match.
Do you want an appetizer with it? So it is easy to see why countries might go with China. Of course, this also gives China control over these countries, Not only the power of the checkbook, but a lot of the new infrastructure is literally handed over to Chinese companies to run. For example, Greece sold a 2 thirds stake in its largest port to a Chinese company, who also owns 40 to 90% Of major ports in Italy, Spain, and Belgium, the last is important because it competes with Rotterdam, which is Europe's largest port. So what is next?
Brought to you by Unchained. What's next is while our ruling clowns in Washington and Brussels Claim that losing wars makes us stronger, China knows it is running us down. It's depleting our weapons and munitions, it is scraping our bankrupt treasury, and it is driving inflation as federal spending ramps up to however many trillions it will take to stuff Americans into every conflict on Earth. Just last week, Republican senators were downright giddy, how our twin wars will revitalize defense manufacturing, As in, Americans will not be making useful things like cars, but at least we can put our trillions to work blowing stuff up. Final point, China's push for global dominance is coming even as it hardens itself against the US.
So China has been selling US treasuries for a decade and is now accelerating the sales, whilst taking steps to insulate its real economy against the US. That Includes cracking down on US firms in China, even house arresting US executives. This pattern suggests that China is starting to think conflict with the US is not only likely, but might actually be a good thing for them. So while Joe Biden and Janet Yellen are out pushing their talking points that Americans can toward all the wars our enemies know that we cannot. Got a brand new podcast episode fresh up on the Internet.
Check it out at the link. Okay. We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
Biden’s illegal student loan bailout hits $127 billion. On top of the $350 billion deferred during the pandemic. Washington likes giving your money to rich people -- ask the Fed. But they’re usually a bit more subtle about it.
Video Transcript AI Summary
Joe Biden's student loan forgiveness plan, which is worth $1 trillion, is being criticized for benefiting wealthy individuals. The plan has already forgiven $127 billion in student loans, on top of the $350 billion in loan deferrals due to the pandemic. Critics argue that college graduates, who earn more than the average taxpayer, are benefiting from taxpayer money. The interest rates on student loans were already heavily subsidized, and certain groups, such as government employees, have their loans forgiven entirely. The Biden administration is expected to continue using taxpayer funds to secure votes, even selling off national assets like the Strategic Petroleum Reserve. Critics believe this administration prioritizes special interest groups over struggling taxpayers.
Full Transcript
Speaker 0: The $1,000,000,000,000 vote buying scheme, that is Joe Biden's student loan forgiveness, is in full swing. With the Washington free Beacon recently reporting on the Democrat Florida senate candidate who wants her tens of thousands of student loans covered by taxpayers despite her owning a $3,000,000 house in Miami. The background here is that the 2 trillion in student loans is one of the biggest assets of the federal government, meaning one of the biggest assets owned by taxpayers, who are otherwise on the hook for roughly 33,000,000,000,000 in federal debt. 3 months after the supreme court struck down Biden's student loan handout saying it's unconstitutional and therefore illegal, at which point Biden's army of lawyers got to work finding any loophole they could to, apparently, illegally, forgive as much as they can. So far, Axios says they have handed out, forgiven, a 127,000,000,000 with much more to come.
Keep in mind this is on top of the roughly 350,000,000,000 in loan deferral they got from pandemic era loan pauses. It's worth noting that the pandemic didn't actually have anything to do with student loans, but never let a good crisis go to waste. Now this $1,000,000,000,000 theft of taxpayer assets bother some people since college grads earn a lot more than the median taxpayer who is currently being robbed. In fact, starting salaries for college grads is higher than the median American family, while average income comes in 30% higher for people with college degrees than the taxpayers who they are taking money from. For people with doctorates, who are the biggest beneficiaries of taxpayer handouts.
Their income is nearly double these suckers who are now paying off their student loans. Our system is fond of giving free money to rich people, ask the Federal Reserve or the Senate, but it is usually done with a bit more subtlety. Of course, that's just the start because the loans were already deeply subsidized even before they were forgiven. Between 2006 and 2013, the interest rate on student loans was less than half what it was for regular consumer loans. Toss in automatic deferments until well after graduation, and it means almost 2 thirds of a student loan is already pre forgiven through sweetheart interest rates, courtesy of the low income suckers who pay for it.
Of course, millions of those loans are, beyond that, forgiven right out the door. If you work for the government or its alliance of nonprofits, you don't have to pay your loans. The deep state does take care of its own. So what's next? Brought to you by Unchained.
What's next is the Biden administration will continue draining the treasury to buy any vote in sight, Selling off the national wealth from the Strategic Petroleum Reserve, which is down a half, that was in order to buy the last election. 2 trillions in student loans due by the next election. Loans which, rightly, belong to the struggling taxpayers who spend 1,000,000,000,000 of dollars for decades building it all up. This administration knows who it serves, the activists and lobbyists who magic ed it into the White House. They'll keep taking everything they can From anybody they can to keep that going.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
The argument that it's not a recession relies on 3.8% unemployment. However, when accounting for missing workers, it rises to almost 7%. Additionally, nearly half of new jobs are part-time or double-counted. Gig-work, waitressing, and government jobs dominate, while the productive economy shrinks.
@profstonge - Peter St Onge, Ph.D.
The “it’s not a recession” argument hinges on one number: 3.8% unemployment. But it turns out counting missing workers takes unemployment to almost 7%. While almost half of new jobs are either part-time or double-counting. The jobs we do have are dominated by gig-work, waitressing, and government or quasi-government workers. All while the productive economy continues to shrink.
Video Transcript AI Summary
The recent job numbers were better than expected, with 330,000 new non-farm payrolls. However, there were some concerning details. Only 86,000 of those jobs were full-time, while the rest were part-time or second jobs. In the past three months, full-time employment has dropped by almost 700,000, while part-time jobs have increased by 1.2 million. This indicates that people are taking on multiple jobs to make ends meet. Additionally, the number of unemployed Americans has increased by over half a million in the past two months, and around 4.5 million to 5.5 million Americans remain out of the workforce. The job growth was mainly in government-related services, while the productive economy, such as manufacturing, shrank. These numbers suggest that the job market may worsen, especially considering the global recession and high levels of debt.
Full Transcript
Speaker 0: Last Friday delivered a huge job number so big in fact that it sent stock soaring on hopes of that fabled soft landing the Hail Mary that will save Joe Biden from himself. Sadly, there were so many devils in those details that it won't be saving anybody from Joe Biden. Charles Payne summed it best, tweeting out that the jobs report was, quote, 1 third poorly paid waitresses, 1 third poorly paid nurses, and 1 third government jobs. Other than that, Missus Lincoln. The reports headline numbers were big.
September non farm payrolls left 330 1000, which was almost double what Wall Street expected. And the unemployment rate got worse, but at 3.8% is still historically low. So that's the good news. Now the bad news. For starters, just 86,000 of those jobs were full time.
Going by the employment survey, the rest were part time. In fact, many of them were second jobs, which currently make up almost 40% of new jobs. Over the past 3 months, a full time employment has actually dropped in the United States by almost 700,000 part time jobs are up 1,200,000. In other words, people are taking second jobs to make ends meet And that gets counted as record job growth. This point, over 8,000,000 Americans hold multiple jobs because they need the money.
Almost half a million Americans now have 2 full time jobs. So many jobs you gotta take too. By the way, the last three times full time employment fell that hard was 2001, which is right before the dot com recession, Then again, in 2008, which was just for the global financial crisis, and then 2020, when governments bought us in instant depression. So spot the pattern. Beyond that night shift miracle, the other shoe to drop was people who aren't working.
Workers who are either unemployed or out of the workforce took another flying leap. Just the past 2 months, unemployed Americans are up over half a 1,000,000, which some 10%. Meanwhile, between 4a half 5a half 1,000,000 Americans remain out of the workforce. That's three and a half years after the pandemic. My colleague, EJ, and Tony worked out what the unemployment rate would be if we included those so called discouraged workers who have given up.
And it comes to an unemployment rate of around 6a half percent, 6.3to6.8, which is right in line with previous recessions given that companies hoard workers in the early days. Finally, job composition In the last employment report, I characterized the new jobs as government workers in DoorDash, and this month kept it up. Fully 22% of the new jobs were government workers who are, of course, parasites who collect a paycheck to crush the rest of the economy, The rest of growth was almost entirely from services, especially government related services like education and health care. The actual productive economy naturally shrank. Manufacturing was down once again, while professional and business services trade and transportation all shrank.
So what's next brought to you by, unchained? What's next is we are seeing surprisingly bad jobs numbers to be so early in a recession. So going by history, it will get a lot worse. And keep in mind we don't know what happens in a coordinated global recession with $33,000,000,000,000 in debt paying over a $1,000,000,000,000 interest, along with a potential oil price explosion on the horizon. They do not have a script for this, but they'll keep pushing until it breaks so the rest of us get to pick up the pieces.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
Paper money empowers governments to print at will, rendering taxes unnecessary. This independence transforms them from parasites to predators, as they can thrive while we suffer. It steals our savings and triggers economic downturns. Governments must be held accountable.
@profstonge - Peter St Onge, Ph.D.
Paper money turns government from parasite into predator. Aside from stealing your life savings and launching depressions, one of the nastier features of paper money is what it does to governments. Because once a government can print what it likes, it no longer needs taxes. Meaning it no longer needs us. It feasts even if we starve.
Video Transcript AI Summary
Paper money has transformed governments from parasites to predators. With the ability to print unlimited amounts of money, governments no longer rely on taxes for revenue. During the pandemic, the US government printed trillions of dollars, leading to inflation, unemployment, and increased debt. This is not a new problem, as the Song dynasty in China experienced a similar downfall due to excessive printing of paper money. Governments now prioritize self-funding and are becoming disruptive agents, unconcerned with the prosperity of their citizens. The cycle of government printing money and causing economic decline needs to be addressed.
Full Transcript
Speaker 0: Aside from stealing your life savings and launching depressions, one of the nastier features of paper money is what it does to governments. In short, it transforms them from parasite into predator. This is because the traditional relationship was that government wanted us to be rich. So it could get lots of taxes. But what if the government doesn't need taxes?
What if instead it has an in house money printer? One that can apparently print trillions per year as the Fed did during COVID. But that point, the government doesn't actually need us to be prosperous. It feasts whether or not we starve. It changes us from the natural symbiosis of a parasite to potentially a very nasty predator.
We saw this in living color during the pandemic lockdowns. So just imagine an early COVID, some naive bureaucrat who rushes in with a brilliant idea, we shall lock down the economy, which will cut GDP by half, and it'll cut taxes by half. But don't worry, we'll just fire half of the government workers. So that bureaucrat would have a very short career. Instead, of course, they did have an in house money printer.
The Fed who pumped out the $6,000,000,000,000 that it took to bribe voters into lockdowns and spend whatever Washington's disease minds could come up with. Aside from the liberties they took with those trillions, we're now dealing with the aftermath. The inflation, the millions out of the labor force, the trillions of debt, Kids who cannot read half of 20 something Americans now stuck living with their parents, all because they had a money printer. In fact, this is not a new problem. In today's newsletter, I walked through the experience of Song dynasty China, which is around the 900 to the 1200s.
They are famous because they invented paper money, specifically the wood block technique that enabled mass printing, which they quickly turned to money. The song are otherwise famous for using the resulting inflation to turn one of history's most amazing golden ages into a gutted carcass the Mongol Khan's road to burn half of the world. So what happened? In short, the song government quickly discovered could use those blockprints to counterfeit unlimited amounts of money, and it turned from taxes to inflation. This broke the traditional confusion symbiosis between government revenue and public prosperity.
As the economy failed, The song government flooded free money to peasants, what we would now call welfare. And as today, they started wars to distract and excused their failures and to ship young men off to die. It launched those wars as previously proud Chinese fled the dying economy to go over and join the invaders. It was in a word national suicide. And it only stopped when the victorious mongols reinstated silver money in the new yuan dynasty.
So back to the present, what's next, brought to you by Unchained, What's next is we have learned nothing from a 1000 years of failed paper money. Governments are using paper to turn themselves into burdens on the people rather than the benevolent helpers they were supposed to be. Every government fundamentally should want the same thing that as people want prosperity, low crime, social harmony, peace. Instead, they are today becoming active agents of disruption because they are self funding. They increasingly seem uninterested whether we cedar fail since after all they eat either way.
At this point, our leaders are accelerating down the road from benign parasite to vicious predator with no end in sight. Read the full article on the song dynasty at profsaintonge.com, and we'll be watching. See you next time.
reSee.it AI Summary
Throughout history, civilizations have experienced cycles of crisis and renewal. The Fourth Turning, a potential societal collapse, is a concept that resonates today. However, we have the power to shape this cycle. In America's 250-year history, we have a track record of pulling back from the brink and ushering in periods of renewal. This requires constant vigilance, personal resilience, and determination.
@profstonge - Peter St Onge, Ph.D.
Is this the Fourth Turning? The Fourth Turning is a crisis that can involve societal collapse. Today, many think we’re overdue. The ancient Greeks also thought civilization runs in cycles — “kyklos” — with a crisis stage. Fortunately, history says the cycle is under our control -- the duration, intensity, and even the order. In America’s brief 250-year history we’ve pulled back from the brink many times to usher in decades of renewal. As recently as the 1980's. But it takes never-ending vigilance, personal resilience, and grit.
Video Transcript AI Summary
The concept of the 4th turning, a crisis involving war, revolution, or social collapse, is discussed in a 1997 book by William Strauss and Neil Howe. They believe we are currently in one of these cycles, which occur every 80 years. The cycle consists of 4 stages: renewal, stabilization, decline, and end crisis. This idea of cyclical civilization is not new, as Polybius outlined a similar political cycle in 146 BC. The cycle can vary in length, lasting from a few years to centuries. The good times can also be short or long, as seen in the British Empire and America's history. To prepare for the future, resilience and prevention are key. Resilience involves fortifying oneself and building a strong social network, while prevention focuses on renewing failing institutions. It is within our control to slow and reverse the decline.
Full Transcript
Speaker 0: If you've been on the Internet lately, you've probably come across the concept of the 4th turning. This is a crisis destruction that can involve war, revolution, or social collapse. It comes from a 1997 book by William Strauss and Neil Howe, who think we are in one right now. Strauss and Howe build a model of history, their generational theory, running on cycles lasting around 80 years. Each cycle is made of 4 stages or turnings, which last around 20 years each.
These are renewal, stabilization, decline, end crisis. They believe the current cycle started in 1946, the end of World War 2, meaning as of 2006, we are overdue for a civilization threatening crisis. The concept that civilization runs in cycles is actually very old. In 146 BC, Polybius laid out the rough contours in what he called the political cycle or kiklos. Now you already know Polybius' cycle, it's famous as the hard times create strong men meme.
And for Polybius 2, the cycle had 4 stages beginning in renewal, then prosperity, then decline, and then crisis. The inflection point for Polybius is that the prosperity contains the seeds of its own destruction. As a new generation forgets hard times and becomes complacent. They fail to defend key institutions which then deteriorate. Social trust declines, public order declines, and the hard times come once again.
The wrinkle is that for Polybius, the cycles are not predictable 20 years, they can last a few years, they can last a century. In fact, history agrees. Hard times in 19 forties Japan were a few years long. In Ming China, it was centuries. Somalia has been in a warlord holding pattern for most of my life.
More important for us, the good times can also be very short or very long. The British Empire held up for centuries actually improved going into the Victorian era. Even in America's brief 250 years, we pulled back many times. So Andrew Jackson's gelding of the Central Bank and the predatory civil service, he essentially fired. He fired enough of them that the rest of them got scared and stopped predating upon the people, the post Civil War Golden Age, even Reagan's morning in America as a reaction to the Dystopia 19 seventies.
So what's next? Brought to you by Unchained. Concretely, there are 2 ways to prepare, resilience and prevention. Resilience means fortifying yourself in case hard times do come, insulating your assets, building your skills, your earning potential, and your practical abilities, building your social network that you can count on thick and thin, even a flock of chickens, if that's your thing. Once that is covered, the rest of prevention.
Political and social organization to renew failing institutions so they can stand on their own feet. The courts, the schools, military, social institutions, secular and religious can all slow or even reverse the decline or if left untended, they can accelerate, the decline instead. Think of it like maintaining a dike against a raging sea. Yes, it is endless work, sequences are catastrophic. In some, the cycle is real.
We're in a dangerous spot, but it is under our control. If weren't under our control. We would just sit back and pray we survive. Instead, we have the power, even the responsibility, to do everything we can to slow and then reverse, the fall. Read the full article with a lot more history at profsainand.com.
K. We'll be watching. See you next time.
reSee.it AI Summary
During the Covid crisis, a mere fraction of the massive spending went towards healthcare. The majority was allocated to handouts and crony payments, fueling the institutional left's agenda. Shockingly, your tax dollars are now funding local rioters, fact-checking censors, and their oppressive tactics. The success of this crisis for the left ensures a repeat in the future.
@profstonge - Peter St Onge, Ph.D.
Only 10% of the $7.5 trillion spent during Covid went to health. Where did the rest go? To hand-outs and crony payments that funded the institutional left currently trying to enslave us. So your local rioters, hand-gluers, and that army of "fact-checking" censors are now fully funded. Courtesy of your tax dollars. The Covid crisis has been so spectacularly successful for the institutional left, it’s only a matter of time til they do it again.
Video Transcript AI Summary
A report reveals that only a small portion of the $7.5 trillion COVID spending actually went towards health, with the majority being used for handouts and special interest subsidies. Green projects, government-funded nonprofits, and bailouts for various sectors received a significant share of the funds. The military industrial complex also received a large sum, contributing to the national defense budget. This excessive spending has led to skyrocketing inflation, with roughly half of the existing dollars being freshly printed. The Federal Reserve's role in printing money to support the government's spending habits is concerning, as it perpetuates the deficit and debt. Without intervention, the deficit is projected to reach $50 trillion in seven years. The future looks uncertain, with little hope of Washington changing its spending habits.
Full Transcript
Speaker 0: It turns out almost all of these 7 and a half $1,000,000,000,000 COVID spending orgy went to fully fund the institutional left who is currently trying to enslave us. My heritage colleagues, Richard Stern and David Ditch, released a new report that found almost none of the 7 a half trillion pumped out allegedly for COVID actually went to health. Instead, roughly 90% went to handouts and crony payments, much of that siphoned to the institutional left that has become the Democrats power base. Meaning, your local rioters, hand gluers and that army of fact checking sensors are now fully funded, courtesy of your tax dollars. First, the numbers.
Between 2020 and 2022, new spending authorizations from Washington totaled 7 and a half $1,000,000,000,000. It's about $57,400 per American household, so a second mortgage. Shockingly, almost none of it actually went to health. To 700,000,000,000 or less than 10% of that was even spent on public health, setting aside whether or not it was useful or not. Instead, as Stern and Ditch write, quote, the spending spree focused on welfare expansions, cash handouts, and opportunistic subsidies for a variety of special interests.
So who are those special interests? Well, trillions went to green projects. Biden's famous Build Back Better cynically rebranded the Inflation Reduction Act. Moore went to the left's universe of government funded nonprofits for everything from LGBT and diversity to, of course, sustainability. On top of bailouts for Hollywood, public transportation, blue city budget holes, the post office, a reliable Democrat base, even bailouts for union pensions, which were running a $757,000,000,000 debt, then, of course, the military industrial complex, which is what Republicans got returned, who continues to loot the treasury to the tune of $2,000,000,000,000 per year on national defense.
That's $1250 per month per household to fund every proxy war they can find while giving free security to any dictator who can cash a check. It's good for Lockheed. It is good for America. All those crony trillions, of course, led to the skyrocketing inflation. 7 and a half trillion comes to roughly half the entire supply of dollars in existence pre COVID.
So about $1 in $3 had fresh ink on them, courtesy of a very obliging Federal Reserve who bought up all the treasuries they couldn't flog in the private market, effectively printing all that money. So what is next? Brought to you by Unchained. What's What's next is the fleasings will continue until morale ends because it's worked spectacularly for Washington's army of activists and lobbyists. The Fed has become an in house money printer for a congress and administration that exploits every crisis to absorb yet more of the productive economy and hand slabs of it to their cronies.
So the deficit and print treadmill will continue to drive inflation and, of course, debt, which is now on track to hit by Congress's own numbers $50,000,000,000,000 in just 7 years with no end in sight as long term deficit settle towards 2 trillion per year forever. Alas, as Herbert Stein put it, whatever can't go on forever will stop. There's little hope of them pulling back on their own. Washington is living their best life right now. So either voters force them or, more likely, Washington drives us straight off the cliff, and then as always complains how nobody saw it coming.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
Wind farms promised cheap energy but are now raising prices by 48 to 64%. Texas faces another energy crisis as electricity prices surge 200-fold when the wind isn't blowing. Renewables are a trillion-dollar scam, and it's just the beginning. Green energy bailout looms.
@profstonge - Peter St Onge, Ph.D.
“The Coming Green Energy Bailout” Wind farms are pulling a mass bait and switch with price hikes of 48% to 64%. Reneging on those cheap promises of cheap energy. So they took your money to build it. Now they'll take more every month to keep it going. Meanwhile, Texas plunges into energy crisis once again. With electricity prices soaring 200-fold. Because the wind isn’t blowing. “Renewables” are a ten-trillion dollar scam. And they’re just getting started.
Video Transcript AI Summary
The Wall Street Journal recently published an article about the green energy bailout, revealing that green energy providers have been dishonest about their promises of cheap energy. They are now demanding significant price hikes in electricity rates, with some states seeing increases of up to 64%. Despite Biden's Inflation Reduction Act, which provided tax credits to green companies, these credits are running 2 to 4 times higher than expected, costing around 1 trillion over the next decade. Furthermore, Texas is facing an energy emergency due to the lack of wind, resulting in skyrocketing energy prices. The influx of taxpayer trillions into green tech is also driving up inflation. This situation is leading to soaring electric bills, draining family budgets, and more government pressure to conserve energy.
Full Transcript
Speaker 0: Recently, The Wall Street Journal published an article about the coming green energy bailout. In short, hold on to your wallet if you can find it in the dark. Now this probably won't shock you, but it turns out green energy providers lied, pulling the mother of bait and switches, promising cheap energy, but as soon as it's built, jacking up the price like some clip joint in the red light district. It is now coming fast and furious. New York State just issued a report that large off Shore wind developers are demanding an average 48% hike their electricity rates.
That's what you would pay. An alliance of 86 clean energy providers representing both solar and wind is demanding a 64% hike in the Empire State. Similar demands have been filed in 11 other states with more coming every week. Now this is despite Biden's comically named Inflation Reduction Act, which was almost entirely made up of 100 of 1,000,000,000 in crony handouts to green companies, 24 tax credits alone. Among the many goodies for Biden's favorite taxpayer swindle was a massive tax credit that offset 50% of a project's cost.
The twist is companies were allowed to sell those credits even if they were losing money, so they had no tax to offset. Meaning, not only do they pay zero federal tax, they actually get paid by selling their exemptions to out on the street. So you are paying them to lose Money. This also probably won't surprise you, but the dollars at issue are soaring. Just a year after the IRA passed, These credits are running 2 to 4 times what was promised when it was debated.
They're now on track to cost 1 trillion over the next decade and growing. So keep in mind the 48 to 64% hikes in your electric bill are all on top of those $1,000,000,000,000 swindles. Of course, it would be one thing if the power actually worked. Double or quadruple the price, but at least the lights stay on. And alas, for that, we go to Texas, which once again faces an energy emergency because the wind is not blowing.
System wide ERCOT SPP prices just hit $5,000. They're usually about 20 or $30. As the windmills sit idle, of course, the gas and coal plants whose budget they spent on wind Do not exist. Fortunately, it's not cloudy in Texas right now, or they'd be burning the furniture to cook dinner by the shade of the solar panels. And finally and ironically, it turns out the Inflation Reduction Act is pushing up inflation.
Because the trillions flooding into green tech It's driving up demand for equipment, material, and minerals that were already in severe shortage worldwide. And so Armed with your taxpayer trillions, they are bidding them up. As miss Shedlock put it, quote, everything Biden does leads to more inflation. So what is next? Soaring electric bills, draining family budgets, more inflation courtesy of the Inflation Reduction Act, with yet more government nagging to turn down the thermostat, Take one for the team, so the green lobby can pay their yacht cruise and keep their mistresses in Jimmy Choo's.
Okay. We'll be watching. See you next time.
reSee.it AI Summary
Social Security and Medicare face a dire financial future. Their unfunded liabilities surpass 160 trillion, as they were designed like Ponzi schemes, not sacred promises. This impending insolvency will trigger a fierce battle to redirect wasted Washington dollars towards fulfilling the sacred benefits already promised and paid for.
@profstonge - Peter St Onge, Ph.D.
Social Security is going bust. By a lot. Unfunded liabilities for Social Security and Medicare exceed $160 trillion (!) Why? Because both were sold as sacred promises. But both were structured as Ponzi schemes. Their insolvency will launch the mother of Gladiator Battles to drain every other dollar wasted in Washington. And put it where it belongs: The sacred benefits already promised and already paid for.
Video Transcript AI Summary
Social Security and Medicare, America's two major entitlement programs, are facing financial challenges. According to the Congressional Budget Office, Social Security is projected to run out in 10 years, while Medicare is expected to deplete its reserves in 8 years. This means that millions of Americans may lose their monthly benefits. Both programs rely on payroll taxes and have significant waste and fraudulent payments. Despite their popularity, these programs will require massive bailouts or tax hikes to sustain them. The government is likely to delay taking action and resort to printing more money and increasing deficits. Ultimately, a battle will ensue between preserving these programs and cutting wasteful government spending.
Full Transcript
Speaker 0: America's 2 mammoth entitlement programs, Social Security and Medicare, are going bust.
Speaker 1: 10 years. That's how long before Social Security goes broke according to the Congressional Budget Office. Millions of Americans are facing the prospect of losing their monthly checks, and the government isn't doing anything about it.
Speaker 0: Both of these sacred promises, which beneficiaries have Already paid for will need 1,000,000,000,000 in ongoing bailouts, tens of 1,000,000,000 in all. This is a problem considering We are already running a $2,000,000,000,000 annual deficit largely squandered on useless crap. And even that 2 trillion going by history will soar when the recession hits full force. Typically in a recession, social spending jumps, tax revenue plunges, so the deficit explodes. So welcome to the late empire loop the treasury level of fiscal discipline.
1st, the details. Social Security was found in the thirties as a universal retirement program, Medicare in the sixties as a universal health insurance program for seniors. Both are funded by payroll taxes totaling 15.3% of your income, all paid by you, but half hidden by making the company deduct it first. Together with Medicaid, which extends health insurance to the poor, they consume half of what the federal government spends, about 2,700,000,000,000 in fiscal 2023. And And both, as you'd expect, have enormous waste.
The GAO estimates 60,000,000,000 in fraudulent Medicare payments per year since government bureaucrats really don't care. Moreover, both were intentionally set up as Ponzi schemes. They take in money. They pretend it's in some sort of account, a lockbox, But, actually, Congress pissed it all away. Even using the pretend reserves, Medicare is projected to run out of reserves in 2031, so that's 8 years, At which point, it will hit an $80,000,000,000 annual deficit that's set to soar.
Meanwhile, Social Security is projected to run out in 2033, So 10 years, at which point it will need to cut benefits by 23% unless it gets bailout or massive tax hike. Note many retires rely on Social Security alone, and roughly 70,000,000 Americans rely on Medicare. The silver lining here is that Security and Medicare are among the most popular government programs in existence. There is no other federal spending that comes close, not wars, Not billions for cronies, not even woke universities. Meaning that in the coming great gladiator battle, it will be Social Security and Medicare against everything else.
The programs will not go bust. No politician would even joke about that, Unless they have dementia, but most don't. Meaning that when d Day comes, we will commence an epic battle with one side using insolvency as an excuse to massively hike Taxes or print more money, and the good guys, I hope, using insolvency as a teachable moment, why we should drain Everything else that the feds waste money on and put it on Social Security and Medicare. Drain every penny for the whores, the cronies, even the woke universities. As much as I look forward to that day, going by history, they will do all the wrong things first.
They will put it off as long as possible, And then they'll print, so they'll drive deficits to 3, 4, 5,000,000,000,000, paired with tax hikes using the rich as the pinata To raid the middle class. Only as a last resort, only if they face electoral catastrophe from voters will congress actually do the right thing, the gladiator battle. Give up their beloved wars, their vote buying slush funds, their crony army to shore up the programs the American people have paid for in good faith while Washington stifled it off in the dark. Okay. We'll be watching.
See you next time.
reSee.it AI Summary
With soaring prices, 17 million uninsured Americans face uncertainty. Half earn under $40k, leaving them vulnerable to disaster. In Florida, new policies cost $7,800 annually. We're a divided nation: the poor on the edge, the rich indifferent, and the middle class struggling to keep up.
@profstonge - Peter St Onge, Ph.D.
With soaring prices, 17 million Americans are going without home insurance. Just praying for the best. About half make under $40,000. So if disaster strikes they’re done. In Florida new policies cost $7,800 per year. We’re becoming a three-tier country: the poor live on the edge of catastrophe. The rich don’t care -- they've reached financial escape velocity. And the middle class runs on a treadmill dodging increasingly ridiculous monthly bills.
Video Transcript AI Summary
Millions of Americans are going without home insurance due to soaring prices, particularly in California and Florida. In California, policies are increasing by double digits, leading insurers like State Farm and Allstate to exit the market. In Florida, insurers are facing numerous frivolous lawsuits, causing them to withdraw as well. Nationwide, insurance costs have risen by 20% since last year. As a result, 12% of American homeowners, representing about 17 million homes, are now without insurance coverage. This includes many low-income individuals who cannot afford the high costs. Losing a home not only means losing possessions but also being responsible for debris removal, which can be expensive. This situation further exacerbates the housing affordability crisis, particularly for young families and millennials.
Full Transcript
Speaker 0: The Wall Street Journal reported that millions of Americans are now going without home insurance amid soaring prices, and that they are just praying for the best. Going naked in the industry lingo, which sounds fun, but it is not. The problem is most dramatic in California, and especially Florida. California policies are now soaring by double digits, while the average new policy in Florida now costs $7,800 per year. In fact, some insurers are simply pulling out.
In the past year, State Farm and Allstate both exited California home insurance altogether, while farmers capped policies. They are leaving because they would have to hike rates by up to 40%. That's what Allstate requested. To make ends meet given soaring construction costs and government fed wildfires. Farmers also pulled out of Florida where the Problems are different.
That case insurers are getting wrecked by frivolous lawsuits that are spreading like wildfire, thanks to decades of trial lawyer lobbying. In fact, Florida makes up 80% of all property insurance lawsuits in the nation with 1 tenth of the nation's population. While the rest of the country doesn't have quite the government California has or quite the lawyers Florida has, Nationwide insurance costs are up 20% since last year. They're now close to $1800 on the median house. In response, literally millions of Americans are now dropping out altogether, going without insurance coverage, and hoping for the best.
12% of American homeowners now go without insurance. That represents about 17,000,000 homes. A few of them are rich and can rebuild out of pocket. But about half of them, so 8,000,000, are people making under $40,000 who simply don't have the money. The Wall Street Journal interviewed 1 retiring Los Angeles who said, worst case, he'll just rent for the rest of his life.
Good luck with that in LA. Keep in mind, when you lose your house, you don't just lose the house, you lose everything you own. Plus, you're on the hook for clearing the debris, which can cost tens of 1,000, a lot more somewhere like LA. A lot of homeowners will just walk away from the wreckage, like 1,000 already have in Detroit or Baltimore. In a couple recent videos, I've talked about the housing affordability crisis locking out young families and millennials.
Mortgage lenders typically build insurance into the income requirements, and incomes are low for the young to begin with. So this means one more barrier on top of the 7 a half percent mortgages and the nationwide shortage of houses Since sellers are locked into 3% mortgages and can't afford 7a half, so they can't afford to sell. In insurance, as in much else, We are splitting into a 3 tier economy. You've got the poor who live on the edge of catastrophe, The middle class who is running on a treadmill dodging increasingly ridiculous monthly bills, and you've got the rich who don't really care. They have reached financial escape velocity.
Okay? We'll be watching. See you next time.
@profstonge - Peter St Onge, Ph.D.
SEC attacks Paypal, Coinbase to clear path to CBDC
Video Transcript AI Summary
The SEC has sent Wells notices to PayPal and Coinbase, warning that the cryptocurrencies they deal with may have broken the law as unregistered securities. These companies have been asking the SEC for guidance on which coins are problematic, but the SEC has been unhelpful. There are concerns that the SEC and the Biden administration are trying to destroy crypto to make way for a CBDC surveillance coin. Recent attacks on crypto-engaged banks support this theory. The goal seems to be to eliminate alternatives and force the crypto industry to develop on a CBDC base. This is referred to as Operation Choke Point 2.0. Bitcoiners are enjoying the show as shit coins suffer, but the pattern suggests that Bitcoin and other blockchain-based entities may be targeted next. The aim is to cut off escape routes from fiat and strangle businesses building an economy based on Bitcoin.
Full Transcript
Speaker 0: Hey, guys. So yesterday, the SCC sent Wells notices to PayPal and Coinbase, meaning a warning that cryptocurrencies they deal with may have broken the law for being unregistered securities. Now this is ironic because for months Now, these companies have been doing everything possible literally begging the SCC to tell them exactly which coins are bad and what to do about it. The SCC has been AWOL. It put Coinbase off for months, and finally canceled a long awaited meeting the night before.
In short, the SCC is not helping. It's not even enforcing. It is simply a credit poor. The bigger concern here is that the SCC is trying to destroy crypto. Though indeed the entire Biden administration is trying to clear to destroy crypto, to clear the path for a c b d c surveillance coin.
This would fit with recent government attacks against crypto engaged banks like signature and silver gate. The idea is if they kill the on ramps to all of crypto, including Bitcoin, then they can cut off the lifeboat and lock people into a CBDC. The 3 main banks that collapsed recently were all crypto engaged, yet they didn't fail because of crypto. So Silicon Valley bank collapsed because their bonds lost value from the Fed's rate hikes. And then because tech in general shrunk after the COVID lockdown tech boom, and signature's case, board member Barney Frank, a prominent democratic congressman for a long time.
He actually claims they weren't even insolvent, that they were targeted for being a crypto on ramp. If true, that would be an effective nationalization of one of the largest banks in America. So why would they do all this? Because if you wipe out all of the alternatives, the ethereum, the stable coins, the file coins, and you close off all of the onramps in and out of crypto, you force the entire crypto ecosystem to build on a CBDC base. You eliminate the alternatives, and the industry is forced to develop new and useful things that feed directly into your centralized surveillance coin.
Nick Carter has been tracking this crypto witch hunt. He calls it Operation Choke Point 2.0, named after the original operation choke point that the department of justice used to cut off industries like gun shops from the banking or credit card system. And presumably they were trying to drive all of those shops out of business because they don't like them. Nobody has been punished for choke point 1.0. So it seems quite likely that they enjoyed it.
They're gonna do it again. This time targeting the lifeboats in the escape routes from a CBDC. So these stakes are much higher. What comes next? A lot of Bitcoiners are actually enjoying the show as shit coins get slaughtered.
I think the pattern here is coming for anything blockchain based, including Bitcoin. They will go after Bitcoin based credit cards, Bitcoin only exchange, full reserve Bitcoin banks like Custodia tried to do. Caitlin Long's bank out in Wyoming. Maybe even Bitcoin wallets like Striker Moon. If they succeed, it cuts off the escape path for people trying to flee fiat and it strangles businesses that are actually trying to build an economy based on hard money on Bitcoin.
Of course, they can't kill Bitcoin, but they can definitely chase the innovation overseas, and they can definitely lock normal Americans into the Fiat system, subsequently into the CBDC. Okay. We'll be watching all of this. See you guys next time.