For most people, economics is a subject that makes their eyes glaze – supply and demand, trade deficits, monetary policy… these are not topics that the average person is well versed in. However, that has got to change. We are no longer allowed to simply go about our day-to-day lives blithely unaware of what is taking place behind closed doors. Just as with the culture and political wars that are currently being waged, the economic war is now on everyone’s doorsteps and there are no non-combatants – whether you like it or not. And similar to the culture and political battles being pitched, this economic inferno that we face is all due to the elite, ruling-class oligarchs.
Over the past year, the country has struggled mightily with supply chain issues as a result of COVID lockdowns leading to shortages in everything from Ford F-150s to now baby formula. Additionally, the Biden regime’s war on the U.S. energy industry in the name of fighting the “climate crisis” has led to soaring gas prices, higher energy costs, and now an imminent shortage of diesel. This coupled with unchecked governmental spending and the Federal Reserve Bank’s unbridled printing of new money has resulted in massive inflation affecting everything from energy, to food, and even housing costs. And as if all that were not enough, the bond and stock markets have recently been forced to realize that the party is over and have suffered massive losses impacting people’s savings and retirement accounts. We are now on the edge of a precipice with the absolute economic collapse of our country staring at us from the abyss.
So how did we get here? Well the problem began roughly 30 years ago when then President Bill Clinton ushered in the North American Free Trade Agreement. This began the process of offshoring U.S. manufacturing and the accompanying well paying jobs that go with it. This only further accelerated under Bush and Obama as American corporations quickly realized how much they could increase profits if they utilized the cheap slave labor that China provided. So we quickly went from a global manufacturing powerhouse to a technology, finance, and service industries-based economy dependent on extended supply chains across the world for a great deal of our critical goods ranging from electronic components to pharmaceuticals. The elites made money hand-over-fist selling and financing these transactions while average Americans lost out on employment desolating entire cities around the country.
Then the housing market collapse occurred in 2008 as a result of subprime mortgages, loose lending terms, and rampant speculation. Again, under the Clinton administration, the policy decision was made to greatly increase U.S. home ownership and given the elites profited from the sale and financing of these properties, no one was too worried that we were heading into uncharted waters underwriting these large pools of previously unqualified mortgage borrowers. The bubble burst threatened to take down nearly all of the money center banks and the global elite could not have that as this would effect their personal wealth. So the banks that caused the problem were bailed out with tax payer money (the very people decimated by the cratering of their home’s value and in many cases foreclosed upon), and a policy decision was made under President Obama – the Fed would shift its focus from flighting inflation to fighting asset deflation. The resultant nearly 0% interest rates led once again to very good times for the oligarchs as they were able to borrow money to purchase appreciating assets while the average person saw their savings accounts earn next to nothing.
So the stage was set when the COVID lockdowns broke the supply chains at the same time the Biden regime was overly stimulating the economy while shutting down domestic energy production leading to the current 40 year high of inflation. While the government and corporate media like to try and blame Putin’s invasion of Ukraine for this, the cake had already been baked and the current war and its further ripples were merely the cherry on top. And with prices increasing at a pace greatly outstripping wage growth, the consumer has been crushed and has cried uncle leading to the decline in the country’s first quarter gross domestic production more commonly referred to as GDP. All indications point to an even more severe contraction in the national economy for the second quarter meaning we are in a recession.
This is not the first time we have been here, however. The term stagflation – meaning inflation during a recession, which should not logically occur – first appeared in the late 70’s under the Carter administration, when the bill was coming due from the costs of the Vietnam War coupled with LBJ’s immense social welfare spending. The country experienced significant economic malaise leading to the appointment of Paul Volcker to the Chair of the Federal Reserve in 1979 and the landslide election of Ronald Reagan in 1980. These two men bore immense political pain and tamed inflation by significantly raising interest rates and crashing the economy before sparking a recovery under more stable conditions.
There are unfortunately two major differences facing Biden and current Fed Chair Jay Powell then when Reagan and Volcker dealt with stagflation. First is the aforementioned manufacturing base, which is no longer existent in the United States. Even more importantly, in 1979-80 the U.S. was a creditor nation and today we are the largest debtor nation in the world. In 1979, the U.S. national debt was $827 billion, which represented 32% of the country’s then GDP. On January 31st of this year the national debt surpassed $30 trillion – equating to just over $90,000 per every single man, woman, and child in this country. Furthermore, the 2021 GDP number shows we are now well over 120% debt to gross domestic production and the record high federal taxes collected last year totaled just over $4 trillion. This equates to a family earning $50,000 a year owing total credit card, auto loan, and mortgage debt of $375,000. Ladies and gentlemen, our country is broke.
So what are we to do? Throw up our hands and wail in despair? No… while there are no painless solutions facing us and the road will be hard, the answer is obvious. We must return to the America First principals displayed by the Trump administration. Remember it was just three years ago before COVID when the economy was roaring to record numbers, manufacturing was returning to the country, and the wages of working class and middle class people was surging while inflation was in check. Yes the Trump administration did see a continuation of deficit spending, but the economic growth was so robust that there was a very real possibility that our growth was going to actually tame the debt issue.
How do we do this? First, we must hold our elected representatives accountable. No more can they put the interests of the ruling elite ahead of the prosperity of the average American citizen. This means letting them know that it is not OK to send $40 billion in money we do not have to a corrupt country to wage a needless war that does not have any strategic interest to the United States. You need to get off the couch and call your representatives, volunteer for campaigns, become election officials, and get involved.
It also means vetting and voting for MAGA candidates that will put this nation first in the Republican primaries and then the general election come November. Sadly, the Democrat Party has become infected with the woke mind virus and co-opted by special interests of the oligarchs, be it the World Economic Forum, the Bill and Melinda Gates Foundation, George Soros’ Open Society, or the Chinese Communist Party itself. Even more tragically, too many Republicans are part of the corrupt establishment and all too complicit in the selling out of the American people. We need to find people of courage and with the moral fortitude to fight for us, because trust me, we are headed for some cataclysmic fights as we traverse these troubled seas.
And lastly, you then need to hold these servants accountable. Too often these politicians make grandiose campaign promises and then quickly sellout or fail to deliver on their platforms. No more. We must ensure that they comport themselves in a manner exactly like President Trump did. He told us what he was going to do and then did it – often having to fight the Republican establishment even more fiercely than the Democrats.
Ladies and gentlemen, I wish I had an easier message for you, but for the reasons I just laid out, it is not hyperbole to say we are facing an abyss. But I do have good tidings in that it is not too late.