“The older I grow, the more I distrust the familiar doctrine that age brings wisdom.” – H.L. Mencken
“The older I get the less I listen to what people say and the more I look at what they do.”– Andrew Carnegie
I’m 53 years old. The older I get the less sure I am about things I was sure about when I was 25 years old. I believed stocks for the long run was an unquestioned truth. I believed our economy was based on free market capitalism. I believed stock prices were based upon profits and cash flows. I believed a home was a place to live – not an investment. I believed the Catholic Church was run by good men doing good things. I believed journalists and the media were watchdogs working on behalf of the public. I believed our military was protecting our interests. I believed politicians legislated on behalf of the people. I believed the main purpose of bankers was to loan money to businesses and consumers in order to support economic growth. Boy, was I dumbass.
My skeptical nature, reliance on data I’ve personally vetted, and judging our leaders based on what they have done versus what they say, has allowed me to escape the Matrix. I wasn’t truly awakened until I watched Bush, Cheney, Powell, the rest of the neo-con prevaricators and fake news mainstream media utilize propaganda to railroad Americans into a $6 trillion unnecessary war, resulting in 36,000 American casualties, the destruction of a country and the creation of thousands of new Muslim terrorists.
I’ve spent the last fourteen years pushing back against the establishment narrative, documenting the fake data published by government apparatchiks, and trying to open the eyes of as many people as possible to the propaganda utilized by the Deep State to keep the ignorant masses dazed, confused and distracted. The country is in deep trouble because what the majority believe regarding the economy, politics, religion, and culture just ain’t so.
“What gets us into trouble is not what we don’t know. It’s what we know for sure that just ain’t so.” – Mark Twain
Since the start of this year I’ve found myself in a mental funk. I’m tired of the lies. I’m tired of incessant media propaganda. I’m tired of politicians. I’m tired of economic experts. I’m tired of hucksters touting their “the end is near” tale to sell me something. I’m tired of faux mainstream media journalists and their whining about Trump being mean and threatening the First Amendment.
They don’t know jack about the First Amendment, as they work for one of the six media conglomerates whose job it is to produce fake news supporting whatever narrative keeps their Deep State benefactors in power. Regurgitating lines written for them by corporate propagandists is not journalism and has absolutely no relationship to the First Amendment. Over the last decade the only place to find some truth has been the alternative media thriving on the uncensored internet. That’s why the establishment wants to regulate the internet.
The fake news blitz by a Deep State, flailing about trying to retain their power and wealth, has reached frantic proportions. The left wingers, egged on by Obama and funded by Soros, hold increasingly inane protests with themes like: wear a vagina hat to support feminazis; hug an illegal immigrant; everyone I hate is a Nazi; and women take another day off and no one notices. The traitorous neo-con warmongers like McCain, Graham, and Kristol see their enormously profitable never ending global conflict agenda at risk. The military industrial complex needs enemies. The left wingers and neo-cons have joined forces to utilize the fake Russian election intervention propaganda in a last ditch desperate attempt to derail the Trump presidency before it starts.
The relentlessness, bitterness, and blatant disregard for the truth exhibited by Trump’s vast array of opponents have made TV virtually unwatchable. I’ve found myself mentally checking out. Why waste mental energy debating hacks, mental midgets and paid trolls for the establishment? After spending years obliterating fake government statistics on a daily basis, I find continuing to do so is just mental masturbation with no ultimate satisfaction. Confronting left wingers and neo-cons is like wresting with a pig, you both get dirty and the pig likes it.
I’ve always been an observer. I’ve been observing how certain both sides are regarding their positions on illegal immigration, Muslims, Russia, Obamacare, Supreme Court nominees, executive orders, jobs, taxes, climate change, school choice, oil pipelines the First Amendment, Second Amendment, the rule of law, and the Bill of Rights. I find it exhausting. We’re lost in a blizzard of lies. I’m not certain about anything. I will remain skeptical of everything uttered by all politicians, all government bureaucrats, all corporate executives, all central bankers, all media pundits, all religious leaders, all corporate paid journalists and especially Wall Street shysters.
“Moral certainty is always a sign of cultural inferiority. The more uncivilized the man, the surer he is that he knows precisely what is right and what is wrong. All human progress, even in morals, has been the work of men who have doubted the current moral values, not of men who have whooped them up and tried to enforce them. The truly civilized man is always skeptical and tolerant, in this field as in all others. His culture is based on “I am not too sure.” – H.L. Mencken
The dissonance between what I have been observing and what is being flogged by the establishment mouthpieces in the corporate mainstream media has never been greater. Some of my observations are anecdotal, others are based on real unadulterated truthful data, a few are based on simple common sense and the rest are based on my understanding of what happens during Fourth Turnings.
When you understand the cyclical nature of history you are not surprised when events lead to reactions among the masses which take the linear thinking status quo by complete surprise. The 2008 global financial implosion and the subsequent election of Donald J. Trump by the deplorable white silent majority completely blindsided the oblivious establishment, but were entirely predictable if you had studied previous Fourth Turnings throughout history.
I’ve been making a horrific sixty mile round trip commute into Philly for the last ten years. The average daily commute has been about two hours, as the entire route has been under some sort of construction for the entire decade. A fantastic one way commute is forty five minutes. I regularly have ninety minute commutes, and I’ve experienced a few which breached the two hour mark. It became immediately evident to me something changed as this new year got under way. My morning and evening commute has been consistently in the forty-five minute range for the last two months. There are less cars and trucks on the road. The question is why?
This only happened once before over the last decade – during the 2008/2009 recession. In a shocking correlation (especially for brain dead tax and spend liberals), when there are less jobs, there are less drivers on the roads going to work. I tried to think of other reasonable explanations for why traffic appeared to be contracting so dramatically. But lo and behold, certain data can’t be easily manipulated by the government. Gasoline demand is plunging, with the year over year trend crashing to levels last experienced during the 2001 recession. Gasoline demand was higher during the 2008/2009 crisis. Demand was higher when oil was over $100 per barrel. Based on this crash in gasoline demand, Goldman Sachs issued a report saying we should be in a recession.
Total miles driven are dramatically slowing down. It’s not because of electric cars or fuel efficiency, as the vast majority of the 17.5 million vehicles being hawked to the math challenged driving public (using low payment leases and six year 0% loans) are pickups, SUVs, or luxury sedans. The Fed induced and subprime debt fueled frenzy of vehicle sales (aka long – term rentals) has seen vehicle sales skyrocket from 10 million in 2010 to an all-time high above 17.5 million in 2016, while auto loan debt has soared from $700 billion to over $1.1 trillion during this same time frame. The truthfulness of the 17.5 million sales number may be in question, as dealer lots are stuffed with record levels of inventory. With a record number of cars in the hands of consumers, how could gasoline usage and miles driven crash?
More questions emerge to those with critical thinking skills. If the unemployment rate is really 4.8%, how could 40% of the employable population (102 million) not be working? This explains the lack of cars on the road during my commute. Obama and his minions jabber about the tremendous jobs recovery during his reign of error. In 2007 there were 122 million full-time workers among a working age population of 233 million, or 52.3%. After Obama’s eight year economic “recovery”, there are 125 million full-time workers among a working age population of 254 million, or 49.2%.
We’ve added 3 million full-time jobs in the last 9 years, and the captured mainstream media touts this as a success story. The deceitfulness – it burns. When 125 million full-time workers, of which 22 million are non-producing government drones, have to support 102 million non-working Americans, most living on the dole, you have a financially unsustainable paradigm. Trump’s slogan should be Make Americans Get Off Their Fat Asses and Work Again.
The explanation for the plunge in gasoline demand and miles driven is quite simple if you haven’t drunk the mainstream media kool-aid about the fantastic economy, low unemployment, and soaring consumer confidence. Americans drive their vehicles to work, to shop, and to eat out. Truckers are the backbone of our just in time big box retail society. If Americans are driving less, there are less people with jobs, less spending at bricks and mortar retailers, and fewer people eating out.
If truckers are logging less miles, retailers are ordering less inventory, manufacturers are selling less widgets, and the economy is contracting. The entire economic improvement narrative is based on soft data about feelings from consumer confidence surveys and dozens of other easily manipulated surveys. Propagandists are experts at convincing clueless dolts it’s raining when their government is actually pissing down their backs.
Despite government reports about expanding retail sales and strong holiday sales, real info from real retailers tells the true story. Major retailers have announced 1,500 store closings in the first two months of 2017, including:
Kohl’s, Target, Macy’s, Sears, and dozens of other retailers reported awful holiday sales. Wal-Mart was lauded for generating a 1% comparable store sales increase. There is virtually no store expansion by large retail chains. During the 2000 to 2007 period these chains were each opening hundreds of new stores per year. We are in the midst of a long term retail contraction which is just picking up steam.
The closure of these stores combined with rising interest rates are a toxic concoction for real estate mall developers. The Fed allowed them to extend and pretend for the last eight years. The jig is up. A wave of retail and mall bankruptcies is baked in the cake. The government reported retail sales growth is driven by Fed induced auto sales (leases and loans), home furnishing sales financed at 0% over five years, building materials stores offering 0% financing, Amazon and until recently restaurant and bar sales.
Since I don’t go into malls or many retail establishments, and rarely eat at chain restaurants, my observations of retail and restaurant traffic are based on how full their parking lots are at peak hours. When the economy was in bubble mode prior to 2008, mall parking lots were jammed and you had a ninety minute wait to get a seat at Outback or Olive Garden. Today, you can get a parking spot at a big box retailer near the front door on a Saturday afternoon.
Malls are ghost towns, with Space Available as the hot new location. Except for peak dinner time on a Friday or Saturday (if then) there are no longer long waits to get a table at one of the struggling chain restaurants. We reached peak retail and peak overpriced restaurants a few years ago. The downward spiral, due to demographics, declining real income, and over-saturation, is irreversible.
As usual, with propaganda distributed by the government or industry organizations, they present a positive restaurant performance index based on false hope and delusional expectations. Restaurant chains like Applebees, Outback, Ruby Tuesday, Chilis, Buffalo Wild Wings and many other major chains have been reporting declining same restaurant sales. Industry comparable restaurant sales are lower than two years ago.
Outback’s parent company announced it will close more than four dozen locations of Outback Steakhouse, Bonefish Grill, Carrabba’s Italian Grill and Fleming’s Prime Steakhouse. Ruby Tuesday is closing 100 locations. Despite government reports showing strong restaurant sales over the last eight years, annual traffic to U.S. restaurants has been flat or up just 1% since 2009, when there was a 2% drop in the wake of the Fed created financial crisis.
The “increase” in sales was generated by price increases of 2% to 3% per year. Now these chains are paying the price for high prices, shitty food, and poor service from their college graduate millennial staff. With higher taxes, soaring Obamacare costs, student loan and auto loan debt up to their eyeballs, and low paying service jobs as their career, even clueless millennials have gotten a clue – they don’t have the money to eat out four times per week.
Anyone with an ounce of common sense knows the majority of Americans have fallen further behind since 2009, with only the establishment and those leaching off the establishment profiting from the suffering of senior citizens and the former middle class. When real personal spending plummets at the highest rate since 2009, you just might be in the midst of a recession.
As consumer confidence surveys, ISM surveys and Fed surveys provide fake news about consumer and corporate feelings about a glorious future, the hard data tells the truth. How could households feel confident when real median household income fell by $558 in December and is down by $529 year over year? How could Obama and his lapdogs in the mainstream media pontificate about the record economic recovery when real median income is 2% lower than it was nine years ago?
How can anyone deny the average American household has been experiencing a depression since 2000, when real median household income is lower today than it was at the turn of the century? Do you think the lack of income growth over the last 17 years may have played a part in the deplorables electing Trump in November?
The corporate fake news media will continue to produce the false narrative as directed by their Deep State employers. The credibility of journalists can be summed up in two pithy sentences by Hunter S. Thompson.
“The press is a gang of cruel faggots. Journalism is not a profession or a trade. It is a cheap catch-all for fuckoffs and misfits—a false doorway to the backside of life, a filthy piss-ridden little hole nailed off by the building inspector, but just deep enough for a wino to curl up from the sidewalk and masturbate like a chimp in a zoo-cage.” – Hunter S. Thompson – Fear and Loathing in Las Vegas
In Part Two of this article I’ll show how the Deep State/establishment/ruling class/status quo have utilized their mastery of propaganda techniques to convince the masses inflation and debt are beneficial to their interests and why Trump’s election is the pushback by a citizenry who are beginning to awake and are mad as hell.
In Part One of this article I exposed the establishment narrative of a strong economy as rubbish by providing hard data regarding imploding gasoline usage, failing bricks and mortar retailers and plunging restaurant sales.
“Inflation may indeed bring benefits for a short time to favored groups, but only at the expense of others. And in the long run it brings ruinous consequences to the whole community. Even a relatively mild inflation distorts the structure of production. It leads to the overexpansion of some industries at the expense of others. This involves a misapplication and waste of capital. When the inflation collapses, or is brought to a halt, the misdirected capital investment—whether in the form of machines, factories or office buildings—cannot yield an adequate return and loses the greater part of its value.Nor is it possible to bring inflation to a smooth and gentle stop, and so avert a subsequent depression.” – Henry Hazlitt – Economics in One Lesson
Inflation is the opium of the masses. The establishment’s interest in dumbing down the masses through government controlled public school indoctrination couldn’t be clearer than examining the chart below. The average non-thinking, math challenged, iGadget distracted, media controlled pawn thinks their household income has risen by $6,000 since 2008 because they have no understanding of Fed created inflation.
Even using the ridiculously downward manipulated CPI concoction shows the median household has lost ground. While median income has remained stagnant since 2000, the CPI is up 44%. Using honest inflation numbers would likely double that figure. Stagnant incomes with living costs 40% to 80% higher doesn’t exactly match the rhetoric of a strong economy being propagandized by the Deep State and their fake news media outlets.
Even the BLS can’t hide the inflation ravaging middle class families and senior citizens on fixed incomes. And those fixed incomes are fixed at zero, as they get .20% on their savings and no increases in their Social Security payments. CPI is now 2.5% higher than one year ago, above the magic central banker 2% goal. It has been raging at an annualized 4.4% rate over the last three months. It is poised to go even higher in the next few months.
Yellen and her intellectual yet idiot cohort of ego maniacal central banker brethren pretend they know the ideal rate of inflation to keep the economy running just right. See how well they’ve done since 1999, with two massive bubbles destroying the lives of millions and the mother of all bubbles (stocks, bonds, real estate) currently continuing to grow before it’s predictable incineration of wealth.
The Big Lie about the need for inflation has been pounded into the heads of the weak minded by the Fed, Wall Street shysters, fake news media outlets, and TV entertainers disguised as journalists and financial experts. This country became a worldwide industrial power while sustaining mild deflationary conditions for almost two hundred years. It wasn’t until the birth of the welfare/warfare state in the 1960s when corrupt politicians and spineless central bankers decided they needed guns, butter, and entitlements.
Closing the gold window in 1971 and allowing politicians to run up the national debt from $400 billion (34% of GDP) to $20 trillion (106% of GDP), while making $200 trillion of unfunded entitlement promises, has been the result. Total credit market debt has risen from $2 trillion in 1971 to over $65 trillion today. Total global debt has surpassed $217 trillion, or 325% of global GDP. The only way to make these disastrously horrible decisions seem palatable has been to produce inflation at prodigious levels in order to make the debt appear payable. It’s not.
Inflation and its supposed benefits is an example of how the Deep State has perfected the teachings of master propagandist Edward Bernays.
“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized.
Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays – Propaganda – 1928
Of course, the pliable public has been convinced government debt doesn’t matter because we owe it ourselves, or some such nonsense. They have also been convinced by Madison Avenue maggots and Wall Street shysters that luxury automobiles, McMansions, Rolex watches, 72 inch home theaters, iGadgets, and a myriad of other “essential” material possessions purchased with debt actually constitute wealth. Keeping up with the joneses has been brainwashed into the minds of the ignorant masses as their only true goal in life.
The result is consumer credit of $3.8 trillion, the highest level in history. Since the 2008 financial crisis, created by the fraudulent issuance of mountains of subprime debt by Wall Street banks and stimulated by the easy money Fed, hundreds of billions of subprime student loan and auto debt have been dispensed to artificially boost GDP. This scheme was concocted by the Obama administration, Yellen, and their Wall Street puppeteers to bamboozle the public and temporarily jolt the economy. It failed.
Over 25% of all student loans are in default. Six million Americans are delinquent on their auto loans. The taxpayer bailout when the student loan “crisis” suddenly hits will exceed $500 billion, as Obama has doled out loans to every functionally illiterate college wannabe in the nation. You’d think the payoff from doling out $700 billion in student loan debt would be more knowledgeable young people imbibed with the inspiration to change the world with their newfound intelligence and training.
Nothing could be further from the truth. The $700 billion has produced illiterate, violent social justice warriors who despise free speech, can’t add, can’t write a sentence, and are virtually unemployable. But they are good at protesting, burning things, and being outraged by anyone they disagree with. This student loan debacle has been a purposeful scheme to artificially lower unemployment and provide the appearance of economic recovery, as the loan money has been used for iGadgets, booze, hookers and blow. Mission accomplished Obama!!
“The most erroneous assumption is to the effect that the aim of public education is to fill the young of the species with knowledge and awaken their intelligence, and so make them fit to discharge the duties of citizenship in an enlightened and independent manner. Nothing could be further from the truth. The aim of public education is not to spread enlightenment at all; it is simply to reduce as many individuals as possible to the same safe level, to breed and train a standardized citizenry, to put down dissent and originality. That is its aim in the United States, whatever the pretensions of politicians, pedagogues and other such mountebanks, and that is its aim everywhere else.” – H.L. Mencken
The one area of consumer credit which has not reached its previous bubble peak is credit card debt. After Wall Street wrote off $300 billion (funded by taxpayer TARP funds) they began issuing credit cards like candy, again. But consumers have been slower to whip out the plastic like the pre-2008 days. That’s why bricks and mortar retailers have closed thousands of stores and ghost malls across suburbia are the norm.
So it begs the question as to why credit card debt has increased by $160 billion (up 20%) since its 2010 low. The answer is simple when you take into account the stagnant wages and rising cost of living documented earlier. Credit card defaults are so low because they are the only thing sustaining millions of families across the country.
In case you haven’t noticed, the purveyors of credit on Wall Street, out of the goodness of their evil black hearts (they’ve paid $321 billion in fines since 2008 without admitting guilt or having one executive jailed), have convinced every level of government, every utility company, landlords, and educational institutions to accept credit cards for payment. Before 2000, all these bills had to be paid with cash on hand.
Now you can pay your IRS bill, real estate taxes, monthly cell phone bill, school tuition or rent (with outrageous fees) with a credit card at 15% interest. Nothing like turning a $2,500 real estate tax payment into a $4,000 real estate tax payment, over time. It’s the American way.
Desperate households across the land aren’t clinging to guns and bibles. They’re clinging to credit cards as their only lifeline in this failing empire of debt, deception, and delusion. When the next inevitable financial crisis strikes “unexpectedly” and even the low paying, no benefits Obama jobs disappear, even their five credit cards won’t keep them from getting kicked out on the street again.
This isn’t just my pessimistic doom persona rearing its ugly head. My ponderings are based on common sense, an honest assessment of the real situation in this country and an understanding of the ebbs and flows of history. H.L. Mencken had similar views on government and the American people during the last Fourth Turning.
“In the present case it is a little inaccurate to say I hate everything. I am strongly in favor of common sense, common honesty and common decency. This makes me forever ineligible to any public office of trust or profit in the Republic. But I do not repine, for I am a subject of it only by force of arms.” – H.L. Mencken
Based on anecdotal and hard verifiable data, the average American family is in the midst of a recession, if not a depression. No amount of propaganda, misinformation, fake government data, or fake news can cover-up the facts. Donald Trump was elected president, not by misogynist, white, racist, xenophobes, but by families (men and women) who have been screwed over by the establishment for decades and left impoverished, hopeless, and depressed.
He won the election because radicals like you and me decided to send a message to the arrogant, evil, globalist ruling class that we are mad as hell and aren’t going to take it anymore. Despair of the silent normal majority is what propelled Trump to victory. Choices have consequences.
“History offers no guarantees. If America plunges into an era of depression or violence which by then has not lifted, we will likely look back on the 1990s as the decade when we valued all the wrong things and made all the wrong choices.” – Strauss & Howe – The Fourth Turning
In Part Three of this article I will assess the early days of the Trump presidency, the full court press by the Deep State to bring him down, his unrealistic economic plans, and how our overvalued stock, bond and real estate markets will eventually crash, leading to the next leg down in this Fourth Turning.
More great articles here: https://www.theburningplatform.com
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