Save food, water and cash: “We are not prepared for what is coming”

[caballero]

This morning I came across this shocking headline, perhaps alarmist. However, there are data that do not call for optimism. In my opinion, the massive printing of money of the last decade and the 2030 agenda have caused an inflation that has taken a long time to manifest. The first, causes an increase in demand; the second, a shortage of supply.

Consequently, politicians do not seem to come to their senses, but tend to blame someone else. It seems that the way of capping prices is prevailing in Europe. I would recommend the book Forty Centuries of Wage and Price Controls: How Not to Fight Inflation where it is indicated that, throughout history, the result of capping prices is always the same: scarcity.

It is in Spanish, but it can be translated with the browser:

https://www.inversion.es/2022/09/09/guarde-comida-agua-y-efectivo-no-estamos-preparados-para-lo-que-venida-24203/

[jj2007]

the massive printing of money of the last decade and the 2030 agenda have caused an inflation that has taken a long time to manifest.

The main factors contributing to inflation are:
- increased costs due to Covid
- gas prices that finance Putin's war

So you can blame Xi Ping and Putin, but the ECB has nothing to do with it

[Gunther]

Caballero,

I think you have read the following:

The main factors contributing to inflation are:
- increased costs due to Covid
- gas prices that finance Putin's war

This is from our forum all-rounder. He is an expert on everything. He just forgot this time what Ms. Lagarde said recently: climate change is responsible for the inflation.
Hopefully the Deep State will forgive this forgetfulness.

[caballero]

> So you can blame Xi Ping and Putin, but the ECB has nothing to do with it

Inflation was already high before the Ukraine war started. Gas prices have risen because Europe refuses to buy gas from Russia (and then cries when Russia cuts it off).

Printing money, without productivity support, always generates inflation.

At the European Central Bank forum in Sintra, Portugal, in June, Powel admitted that "now we understand better how little we understand about inflation.".

https://www.bloomberglinea.com/2022/08/26/los-banqueros-centrales-deberian-hacer-un-mea-culpa-en-jackson-hole/

I mean, we've put people in charge who admit they don't know anything about inflation. And nothing happens.



> The main factors contributing to inflation are:
> - increased costs due to Covid
> - gas prices that finance Putin's war

Surely you have heard ad nauseam that the current inflation is a consequence of the bottlenecks of the pandemic as well as the war in Ukraine, but it is not the responsibility of politicians or central bankers. Well, in this video you will hear politicians and central bankers that they do have responsibility for it.

https://www.youtube.com/watch?v=Km1sBaZjs88

This is a video of a Spanish economist, but it has very instructive cuts of American politicians and central bankers. At 2:27 there is a response from Janet Yellen. At 4:27 there is another interesting break from the head of the FED. At minute 5:41, another entry to frame. Minute 7:31.

[jj2007]

> So you can blame Xi Ping and Putin, but the ECB has nothing to do with it

Inflation was already high before the Ukraine war started. Gas prices have risen because Europe refuses to buy gas from Russia (and then cries when Russia cuts it off).

Printing money, without productivity support, always generates inflation.

Check this table. You are right, inflation was already 5% when the war started. You can't have a pandemic with lockdowns and half the population staying at home without a massive cost increase, or productivity loss - it doesn't matter how you call the baby. I was actually surprised that the effect showed up with (roughly) a year of delay..

Then came the war. "Gas prices have risen because Europe refuses to buy gas from Russia" sounds plausible but is not quite correct: EU Member States bought happily any amount of gas they could get. Gas prices soared because everybody feared that it would become scarce as a side effect of the war (and Putin plays this card very well).

So, in essence, I stay with my statement that Xi Ping's Covid and Putin's war explain the inflation, and that the ECB (or the FED) had no influence whatsoever. Note that EU inflation was at -0.27% at the end of 2020, and 0.25% for the whole of 2020.

Now the FED and, later, the ECB have raised the interest rates. That is a standard response to home-made inflation ("printing money"), but it fails almost completely at lowering imported inflation, as is the case for gas. What Lagarde says in public to justify that act doesn't interest me. I'd rather know what they plan when it fails, and what it means for some countries with very high public debt such as Japan and Italy. My best guess, however, is that the gas price will be back to normal in about half a year from now.

[hutch--]

While I confess I look from afar (I live in OZ), the situation in Europe does look farcical. Wade into a phukup like Ukraine, all economic guns blazing and wonder why the Russians eventually retaliate. When you have Ursula publically making statements about "hurting Russia" to force policy change and then whining about how Russian retaliation is hurting Europe and forcing policy change, there is high farce coming into play.

There was this fantasy in Europe that removing the payment mechanisms to Russia for its natural resources while maintaining energy supplies was actually going to happen, so that Europe could obtain Russian gas for FREE. Seems the Russians did not suffer from this illusion and like anyone selling resources, demanded to be paid in roubles rather than currencies that they are blocked from using.

Now it looks like these morons (various EU governments) face the wrath of their own populations with demonstrations and riots across Europe.

Who are the winners in the west from this debacle ?

1. The US as it acts to destroy Europe.
2. The WEF as it acts to detroy the western economies.
3. China, as it is fully isolated from this fiasco.
4. India as it has no illusions about the western push and keeps buying Russian energy.

The UNI polar world is failing and a new world order is emerging with multiple nuclear armed big players ensuring that no-one is game to start a nuclear war. The old Mutually Assured Destruction (MAD) has kicked in to ensure that the world has some chance of peace at last. Just don't hold your breath waiting. 

[caballero]

The guilty is always from else one.


Greenflation
https://www.codigonuevo.com/conciencia-social/greenflation-compra-mas-cara-debido-cambio-climatico-nosotros-sostenibilidad

renewables have not been developed to fill the gap left by fossil fuels". There is less supply, but more demand.

new renewable energy technologies require certain minerals in large quantities: copper, lithium, cobalt, which have increased in price due to increased demand.

Agricultural operations are prohibited due to contaminants. Consequently, prices increase.

Taxes are raised to grant subsidies and, with them, hijack the vote. Consequently, less competitiveness.



Europe was a power in cars with combustion engines, but not electric ones, in which the USA has an advantage with Tesla, and China.

Renault sells 60% of its combustion engine and hybrid business to Aramco (Saudi) and Geely (China)

https://www.elespanol.com/castilla-y-leon/economia/empresas/20220906/renault-negocio-motores-combustion-hibridos-aramco-geely/701179937_0.html

[jj2007]

Greenflation
https://www.codigonuevo.com/conciencia-social/greenflation-compra-mas-cara-debido-cambio-climatico-nosotros-sostenibilidad

renewables have not been developed to fill the gap left by fossil fuels". There is less supply, but more demand.

A very superficial article, albeit with good intentions. Truth is that renewables cost money to get up and running, but truth is also that today they are cheaper than nuclear, gas and oil.

Now comes the government and introduces a CO2 tax. Evil, right, and it makes everything more expensive!

Truth is it makes fossil fuels more expensive, so demand goes down, and the Saudis (and Putin) make less money. In the meantime, those CO2 taxes generate revenue that can be redistributed - to the poorest people, for example, those who cannot afford heating this winter.

Net winners are poor and average people in this scenario.
Net losers are Putin and the Saudis, the Australian coal miners, plus rich people who use an awful lot of fossil energy.

[hutch--]

JJ,

this sounds like something from Alice In Wonderland.

> Truth is it makes fossil fuels more expensive, so demand goes down, and the Saudis (and Putin) make less money.

As Europe prepares to freeze its arse off in the coming winter, do you think that cold hungry Europeans will give a PHUK about the all green fantasy land ?

Net losers are poor and average people in this scenario.
Net winners are Putin and the Saudis, the Australian coal miners, plus rich people who use an awful lot of fossil energy.

Europe has always had a way of dealing with this. "Let them eat cake" while she still had her head.

This is how the WEF goes forward, donkeys believing the bullsh*t until its too late and the few survivors become the new serfdom. The ancient serpent in the form of Klaus Schwab and his disciples trashing the western world while hoping that the abuse and misuse of the American military will take care of China and Russia and soon to be India if they don't start grovelling to the American military/industrial complex. 

        Drinkin' rum and Coca-Cola
        Go down Point Koomahnah
        Both mother and daughter
        Workin' for the Yankee dollar

[jj2007]

Net losers are poor and average people in this scenario.
Net winners are Putin and the Saudis, the Australian coal miners, plus rich people who use an awful lot of fossil energy.

You obviously have not made even the faintest attempt to understand what I wrote...

63 French billionaires emit more greenhouse gases than 50% of the population of France. A single hour of flying in their jet causes as much pollution as a year of driving a private car

Now try to imagine, and calculate, what happens if a) fuel gets taxed and b) its revenue gets redistributed on each-citizen-gets-the-same-sum basis. Explain to me how the 63 billionaires are "winners" in this scenario. I am curious (but I know I am wasting my time here, I better go back to coding).

[hutch--]

I well understand the model you mentioned, I just don't believe it works.

i have long made the comment that there no good guys and bad guys, they are ALL bad guys. A simplistic view that if we carefully redistribute income so that all are well off, that everyone will play nice. They don't of course, they all use every trick in the book and others beside to get their own way. If all else fails, start a war, get better results (for the bad guys) than pie in the sky bullsh*t.

Last I heard, Duda from Poland is trying to screw Germany for trillions and is threatening the Czech republic. He is a POLITICIAN and they are all R_SOULS.

Quoted somewhere (perhaps Niccolò Machiavelli), the ultimate aphrodisiac is power and politicians move on power, not pie in the sky.

[K_F]

Have a rotating 3 month stock going for over a year now.. and many other things stashed away for the 'cold winter' (Did I mention global warming?   )

[hutch--]

 

I am lucky I live far far away from the blunders of both the US and the EU via WEF ideology but OZ has to survive in a world market and fortunately trades with Asia and a range of other countries. The negotiations with China seem to be going OK and OZ has adapted reasonably well to changes in the international market.

The main difference is we got rid of a really bad federal government led by "Morri-San" and we now have ALBO. We may end up getting a traditional form of European export, immigrants, as OZ is a multi-cultural society that can use skilled people.

RE : The topic heading, never hurts to stock up on a number of things, food is not a problem here, I try to buy thing made in OZ and for what I cannot find here, I can get from AliExpress.