Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Category Archives: Inflation

Five Democrats Sink Biden’s Comptroller Nomination

This article appeared online at TheNewAmerican.com on Friday, November 26, 2021: 

Just one Senate Democrat would have sunk the confirmation of Saule Omarova, Joe Biden’s nominee to be comptroller of the currency. Instead, she got five — Senators Jon Tester (D-Mont.), Mark Warner (D-Va.), Kyrsten Sinema (D-Ariz.), John Hickenlooper (D-Colo.), and Mark Kelly (D-Ariz.). This, wrote Axios on Wednesday, “effectively kills her nomination.”

Every senator should have opposed her nomination. All Republicans would likely have voted against her if the Senate Banking Committee had moved her nomination to the floor. And every Democrat should have. In fact, the White House should never have offered her nomination in the first place.

But no. The powers that be want so desperately to change the United States into a carbon copy of the old Soviet Union, or Venezuela, that they continued to support her nomination even as it was sinking.

When three of the five senators — Tester, Warner and Sinema — told the committee’s chairman, Sherrod Brown (D-Ohio), that they were bailing, he informed the White House that her nomination was, for all intents and purposes, dead in the water. The White House, fully under the control of leftists who are working to change America into a socialist state, continued to back Omarova: “The White House continues to strongly support her historic nomination. Saule Omarova is eminently qualified for this position.”

And then the White House spokesman told Axios: “She has been treated unfairly since her nomination with unacceptable red-baiting from Republicans like it’s the McCarthy era.”

“Red-baiting” is a disparaging term often used by communist sympathizers to deflect legitimate criticism of an individual harboring communist views in an attempt, often successful, of painting the accuser of being driven by xenophobic or fanatical right-wing ideologies. It’s an attempt at smearing opponents to communism and its forced imposition on America.

So, too, is the phrase the White House spokesman used — “like it’s the McCarthy era” — referring to legitimate attempts in the 1950s to expose communists who were infiltrating sensitive and influential agencies of the federal government. 

The senators were no doubt influenced by the letter they received from 41 state banking associations and the Independent Community Bankers of America. They might not have seen her as part of the plan to turn America into a socialist nightmare but they certainly saw that, if successful, private banking, and their profession, would disappear.

 

“We take this unusual step,” they wrote, “based on the nature of Prof. Omarova’s public positions and the impact they would have on community banks … [her] proposal [to eliminate all private banking in the United States] is anathema to community banks and would undermine the role they play in driving local economic activity and development.… [She] stands well outside of … consensus … and could seek as Comptroller to undermine it and thereby jeopardize American economic growth.”

They failed to mention her ultimate purpose, as exposed by the Wall Street Journal:

She proposed that the Federal Reserve take over consumers’ bank deposits, effectively ending [private] banking as we know it. [Her plan would] become the ultimate public platform for generating, modulating, and allocating financial resources … [just as] Venezuela and China are doing.

Senator Bill Hagarty (R-Tenn.) wasn’t so inhibited. He told Fox News:

President Biden’s choice for banking regulator is a Marxist academic who wants to destroy the American banking and energy sectors and implement socialism in the United States, proving once again that this White House is beholden to the radical left elements of the Democrat party.

Senator Pat Toomey (R-Pa.), in a speech on the floor of the Senate, said:

There’s a lot that’s extraordinary and radical here — but maybe the heart of it is that Ms. Omarova doesn’t just want tightened regulation of banks. What she wants is to, and I quote — this is her words — “effectively end banking as we know it.” Those are words she wrote just last year.

Much has been written about her Marxist positions on banking. Something little known is her 2020 paper, “The Peoples’ Ledger: How to Democratize Money and Finance the Economy,” in which she offers a “blueprint for a comprehensive restructuring of the central bank’s balance sheet as the basis for redesigning the core architecture of modern finance.”

She expanded on that theme in a lecture she gave in January 2021:

There will be no more private bank deposit accounts, and all of the deposit accounts will be held directly at the Fed.

 

And there are very interesting implications from that thought experiment; for example, with the much more direct and proactive tools of monetary policy, like helicopter money, which is, you know, considered radical, primarily because economists really do not know how to manage the issue of what would happen in the inflationary environment when the central bank needs to contract the supply of money.

 

How is it politically feasible for the central bank to effectively take money away from people’s accounts?

Her plan answers that question: The Fed could simply remove a quantity of those heretofore privately held dollars and thus “shrink” the money supply to fight inflation.

At this writing, the White House hasn’t officially announced that they are pulling her nomination, nor has Omarova decided that the battle is lost and officially withdrawn her nomination. But, for all intents and purposes, it’s over.

Biden Blames Oil Companies for High Gas Prices. Oil Industry Blames Biden. Both Are Wrong.

This article appeared online at TheNewAmerican.com on Thursday, November 18, 2021:  

Joe Biden’s incendiary letter to the head of the Federal Trade Commission (FTC) accused oil companies ExxonMobil and Chevron of profiting at the expense of the average American who has seen gas prices at the pump jump 60 percent over the last year.

In response, both oil industry trade groups — the American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM) — blamed Biden.

Both are wrong. The people running the printing press are to blame.

Whomever wrote the letter that Biden signed and sent on Wednesday said the bottom line is this: “Gasoline prices at the pump remain high, even though oil and gas companies’ costs are declining.”

Even worse, they’re profiting at drivers’ expense:

In the last month, the price of unfinished [wholesale] gasoline is down more than 5 percent while gas prices at the pump are up 3 percent in that same period….

 

Meanwhile, the largest oil and gas companies in American [ExxonMobil and Chevron are the two largest] are generating significant profits off higher energy prices….

The letter ended with the threat:

I do not accept hard-working Americans paying more for gas because of anti-competitive or otherwise potentially illegal conduct.

 

I therefore ask that … you bring all of the Commission’s tools to bear if you uncover any wrongdoing.

The spokesman for the American Petroleum Institute got it partially right when he called the Biden letter “a distraction.” That is the usual tool politicians use when they want to deflect attention away from themselves and their destructive policies. In the instant case, the target is the oil industry — those big, bad, dirty, polluting, selfish and, as a result, highly profitable companies. The same companies that have provided gas at competitive rates to American motorists for decades. 

The API spokesman got it wrong when he blamed “the ill-advised government decisions that are exacerbating this challenging situation.”

 

The spokesman for the AFPM also blamed government policy:

Federal policy is discouraging supply by shutting down pipelines, putting future production off limits, talking down the future of the petroleum business, and imposing expensive requirements on refineries….

 

The administration is blaming others when it ought to take a sober look at its own energy policy.

If gas prices were the only commodity going up 60 percent in a year, then perhaps Biden and the FTC might have a case. Something fishy would be going on.

And because a barrel of oil is used for more than 6,000 products (from umbrellas to bicycle tires, from shampoo to house paint), when the price of a barrel goes up, so do the prices of those products. To a consumer of those products, it looks like oil is the prime, or even the only, driver of those price increases.

But it’s not. Everywhere else one looks, prices are going up, not only at the pump but at the grocery store, home improvement centers, and big box retailers. Overall, the Consumer Price Index (CPI), a faulty but still often-used measure of inflation, is up more than six percent in a year.

Something else is going on, and free market economist Milton Friedman nailed it: “Inflation is always and everywhere a monetary phenomenon.”

And who is in charge of that “monetary phenomenon”? The Federal Reserve. As it purchases government bonds from the federal government it increases the supply of money in circulation, and rising prices follow.

According to the Fed (which isn’t shy about revealing what it’s doing), the amount of money in the U.S. economy has grown at nearly a 20 percent annual rate. If that’s so, then consumers should be happy that their cost of living is only up six percent! It could be much worse!

Here’s how the printing press at the Fed works: The U.S. Treasury sell bonds to the Federal Reserve which pays for them by putting new digital currency into its checking account. The government then pays its bills with the new money. That way politicians can pay for spending without raising taxes or borrowing. Instead, the tool they use is far more insidious and difficult for the average consumer to fathom: the new spending is paid for by the loss in the purchasing power of their dollars.

As former Fed Chairman Alan Greenspan explained:

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which — through a complex series of steps — the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold….

 

The law of supply and demand is not to be conned. As the supply of money … increases relative to the supply of tangible assets in the economy, prices must eventually rise.

 

Thus the earnings saved by the productive members of the society lose value in terms of goods….

 

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold.

 

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth.

For the record, Greenspan was in charge of this “scheme for the confiscation of wealth” as chairman of the Federal Reserve, serving five terms from 1987 to 2006.

Don’t pay attention to those distractions or deflections away from the principal cause of rising gas prices. It’s the Fed. It’s always the Fed.

Social Security a “Shell Game, There Is No Money in the Trust Funds” Says Head of Accounting Think Tank

This article was published by TheNewAmerican.com on Friday, September 3, 2021:  

Sheila Weinberg, the founder of the non-partisan think tank Truth in Accounting (TIA), spoke the truth. In an interview with the Epoch Times on Thursday she said, “Our bottom line is the [Social Security] trust funds are all a shell game; there is no money in the trust funds.”

What resides in those trust funds for Social Security and Medicare are debt securities. The “premiums” workers have been paying in are immediately spent to fund the government, but to keep the scam from blowing up, the Treasury Department issues IOUs to the Social Security Administration — promises to redeem them at some undetermined time in the future.

These are not assets. They are liabilities.

Weinberg, who founded Truth in Accounting (TIA) 20 years ago, explains that “the federal debt [estimated currently at $28 trillion] only tells us what the government owes the public. It doesn’t take into account what’s owed to seniors, veterans and retired [government] employees.”

According to TIA, the real federal deficit exceeds $133 trillion, reflecting the unfunded and unaccounted shortfalls of $41 trillion in Social Security promises and $55 trillion in unfunded Medicare promises. The balance includes publicly held debt, pension and retiree healthcare liabilities, and other liabilities.

The report from the Board of Trustees of the trust funds collecting and paying out Social Security and Medicare benefits that was released on Tuesday said that, thanks to COVID and the related economic shutdown, those funds will be exhausted sooner than expected. But they were hopeful that Congress would come to the rescue by “increasing revenue from workers and employers … and lowering benefits for some or all beneficiaries.”

U.S. Senator Mike Crapo (R-Idaho), ranking member of the Senate Finance Committee, said that report “once again identifies unsustainable benefit promises.… The Hospital Insurance trust fund is projected to be exhausted around 2026.”

But there’s little chance, says Crapo, of Congress taking up the issue:

While bipartisan efforts are necessary to make needed changes to address Medicare and Social Security’s long-term financial challenges, most Democrats want only to expand benefit promises further.

These welfare-state programs cannot be fixed. They can be kept from failing, but fundamentally they are flawed. In 1997, Congress, at the last minute, rescued them from extinction by making some surface changes: raising taxes and delaying the payment of benefits. “Since then,” said Heritage Foundation Senior Fellow Doug Badger, “there has been very little interest among leaders of either party in entitlement reform. Until that changes, politicians will continue to promise benefits that the government can’t deliver.”

At bottom, the scheme is a tool of the devil, wrote Michael Rozeff:

When we call upon the state and its power to do what we should be doing, we unleash destructive forces that wreck society….

 

Abandoning responsibility in favor of the state uncorks a bottle with an evil genie: the power and domination genie.

 

Call it a devil or Satan … because that is what it is.

Indeed, the concept of government-funded social security violates both the Eighth and the 10th Commandments: 8) Thou Shalt Not Steal; and 10) Thou Shalt Not Covet. As Gary North noted in his book Inherit the Earth, “The [Eighth Commandment] doesn’t say ‘You shall not steal, except by majority rule.’”

Rozeff claims that Social Security is not only fundamentally dishonest (like a Ponzi Scheme that pays benefits to one generation with funds extracted from an earlier one), but it also forces individuals to lose some of their essential humanity:

If we ask Congress to extract 15 percent of everyone’s pay and transfer it to people over a certain age, we abandon all of this which is so essentially human.

 

We abandon all good sense, which includes the exercise of our moral senses of worth and judgment….

 

This is what Social Security is: both irresponsible and inhumane. It is a program by which we abandon central human capacities and resort to brute force and arbitrary rules as substitutes.

Social Security cannot be “fixed.” Its ultimate demise can be delayed, usually at the last possible moment by an act of Congress, but its fundamental flaw — taking money from some who earned it and giving it to others who didn’t — remains.

The Fed Lies. Inflation Is Here and It’s Going to Get Worse, Not Better

This article was published by TheNewAmerican.com on Monday, May 10, 2021:  

In its Beige Book, a summary of the U.S. economy published eight times a year and largely based on anecdotal evidence, the Federal Reserve claims that recent price increases are “partly attributed to ongoing supply chain disruptions, temporarily exacerbated in some cases by winter weather events.”

Its authors are lying.

Keep reading…

White House: No Inflation Threat, Yet

This article was first published by TheNewAmerican.com on Wednesday, April 14, 2021:  

To address increasing concerns that the $5 trillion-plus in new money being poured into the economy by the government will raise prices, the White House called together a group of Keynesian [read: interventionist] economists to sort things out. Their conclusion? Nothing to worry about here; move along.

Specifically, they created various models based upon different assumptions in an attempt to discover any “hint” of inflation. “It never appeared,” said the New York Times. Added the establishment mouthpiece:

Keep reading…

Senate Temporarily Blocks Confirmation of Gold Advocate to the Federal Reserve

This article appeared online at TheNewAmerican.com on Wednesday, November 18, 2020: 

When Senate Majority Leader Mitch McConnell realized that he couldn’t get enough votes to break the filibuster of Judy Shelton’s nomination to the Federal Reserve Board on Tuesday, he changed his vote to “no.” That gives him a procedural opportunity to bring her nomination back to the floor once the three Republican senators who were missing (two due to COVID, one due to a family emergency) are back in Washington.

The confirmation hearing will likely continue the week after Thanksgiving, and will also likely result in the confirmation of Shelton to fill a vacancy on the board.

So, why the filibuster?

Keep reading…

Producer and Consumer Prices Jumped in July Much More Than Expected

This article appeared online at TheNewAmerican.com on Wednesday, August 12, 2020: 

Prices for goods and services at both the producer and the consumer levels jumped far above forecasts in July. The CPI jumped 0.6 percent (an annual rate of more than seven percent — double the rate economists had predicted and the biggest monthly jump since 1991), while the PPI clocked in at 0.8 percent (an annual rate of nearly 10 percent).

Are these harbingers of the coming tsunami of price increases based on the huge jump in the money supply reported by the Fed? Or are they just a blip on the screen, as Bloomberg’s Conor Sen suggested?

Sen tried to soothe concerns, writing that

Keep reading…

National Debt Projected to Hit $41 Trillion by 2030

This article appeared online at TheNewAmerican.com on Wednesday, August 12, 2020: 

If the Manhattan Institute is correct, the national debt will reach $41 trillion no later than 2030, less than 10 years from now. Their calculations take into account the budget deficits baked into the numbers before the COVID crisis hit, the stimulus packages initiated since, the impact of an aging demographic on Social Security and Medicare, falling tax revenues due to a smaller economy, and rising interest rates.

Said the institute:

Over the full decade, the coronavirus recession is expected to add nearly $8 trillion to the national debt, pushing the debt held by the public to $41 trillion within a decade, or 128% of the economy….

 

This gives lawmakers six years or less to avert a potential debt crisis in which rising debt and interest costs would overwhelm Washington’s ability to tax and borrow.

Two key questions arise:

Keep reading…

Wholesale Prices Drop in June; Economists Confounded

This article appeared online at TheNewAmerican.com on Friday, July 10, 2020: 

The Bureau of Labor Statistics (BLS) announced on Friday that wholesale prices dropped by 0.2 percent in June. Economists were expecting an increase of 0.4 percent.

Confounding those economists further, wholesale prices have dropped by nearly one full percentage point over the last year. Common sense says that when the supply of money and currency increases, price increases are sure to follow.

And the money supply has certainly been increasing.

Keep reading…

Consumer Spending Rebounds a Record Eight Percent in May

This article appeared online at TheNewAmerican.com on Friday, June 26, 2020:

The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) reported on Friday that consumer spending jumped to a new record in May: 8.1 percent over April, more than double the all-time high ever recorded since the bureau started keeping track of such things in 1959.

Consumers, locked away owing to government mandates in response to the COVID virus, headed for auto showrooms and big box stores to celebrate their new freedom in May.

Keep reading…

Stock Market Rallies Despite Negative News

This article appeared online at TheNewAmerican.com on Thursday, June 4, 2020:

The small-cap Nasdaq 100 Index has rallied more than 43 percent since its low set on March 23. The S&P 500 Index has posted its largest 50-day rally in history. The Dow Jones Industrial Average has gained 7,600 points.

With all that is going on in the country and the world, how is that possible? The national riots, the confrontation with China building over Hong Kong, and the deaths continuing to mount as a result of the coronavirus, would all seem to be negatives on the market, driving investors away.

But, no. Investors aren’t looking out the back window, but instead are looking out the front. And they are increasingly seeing what they want to see and hope to see: a recovery that justifies their decision to invest in companies that appear likely to benefit and profit from it.

The president is perhaps the most well-informed individual on the planet. On May 29 he said, “We’re going to have a great third quarter, a great fourth quarter. I think next year is going to be one of our better years.”

There are trillions of dollars just itching to hear such confidence coming from the president. During the lockdown, consumers hunkered down and hoarded many things — toilet paper, canned goods, cleaning supplies, and cash. The savings rate, which is normally around five percent of personal incomes, soared to 12.7 per cent March and then to 33 percent in April. As a result, economists are expecting a virtual tsunami of consumer spending to occur once the economy is fully open.

And the economy is already opening.

Keep reading…

Consumer, Producer Prices Plunge in April

This article appeared online at TheNewAmerican.com on Thursday, May 14, 2020:  

Wholesale prices dropped by 1.3 percent in April, the sharpest decline since the Labor Department’s Bureau of Labor Statistics has been tracking them dating back to December 2009. This followed a decline of 0.2 percent in March.

The report followed the Labor Department’s announcement on Tuesday that consumer prices dropped by the most since the Great Recession of 2007-2009.

The decline is blamed largely on the collapse in gasoline prices, which have dropped by nearly 60 percent over the last two months. Food prices also declined during the month, along with declines in prices of apparel and airline tickets.

But is that the real reason? It’s easy to be lulled into thinking that the shutdown of the economy is the primary cause: People aren’t driving or flying or eating out. Therefore demand is down, which is followed by declining prices.

Simple. Easy. And wrong.

Keep reading…

Consumer Prices in March Fall by the Most in Five Years

This article appeared online at TheNewAmerican.com on Good Friday, April 10, 2020:

The summary of how consumer prices behaved in March, released on Friday by the Bureau of Labor Statistics, noted that its index registered “the largest monthly drop since January, 2015.” The 0.4 percent drop in March is equivalent to a five-percent decrease in prices at the consumer level for a year.

Its Consumer Price Index (CPI) was pushed down mostly by the price of gasoline, which fell by 10 percent in March. This reflected the virtual collapse in crude oil prices, which dropped more than 30 percent last month.

Apparel prices also were down, along with new car prices, reflecting an absence of buyers in retail outlets and showrooms, thanks to the coronavirus shutdown.

When pressed on the matter, Federal Reserve Chairman Jerome Powell (head of the machinery that is responsible for increasing the money supply) said

Keep reading…

Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2021 Bob Adelmann