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Archive for the ‘Uncategorized’ Category
Spelling Bee Contestant Asks The Definition of “Woman”
Posted by M. C. on June 18, 2022
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Watch “Talking About Stoicism 179 Achieving Goals” on YouTube
Posted by M. C. on June 18, 2022
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The Fed Can’t Replace The Market To Find The Best Interest Rate
Posted by M. C. on June 18, 2022
The failure of central planning is manifesting in our world again, this time from The Fed. There’s no “right way” to plan the economy, or to manipulate interest rates, or to counterfeit money. It’s all wrong and destructive! The only fix is to End The Fed and to use sound money once again.
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No, It’s Not “Greed” or “Price Gouging” That’s Driving up Gas Prices
Posted by M. C. on June 18, 2022
This has certainly succeeded in driving crude prices above what they would have otherwise been. Fortunately, the plan has also partly failed. China and India have been buying up large amounts of Russian crude, ensuring that supply remains in the global market. This means global supplies are not strained as much as would have occurred had the Biden administration’s attempt at isolating Russia succeeded.
But while access to crude has not evaporated as the US regime intended, refinery capacity continues to lag. This has driven up gasoline prices to higher peaks than crude.
https://mises.org/wire/no-its-not-greed-or-price-gouging-thats-driving-gas-prices
Both consumer and producer prices rose near multidecade highs last month. Price inflation rose to 8.6 percent while wholesale producer prices rose by more than 10 percent.
In both cases, a significant factor behind rising prices—but certainly not the only factor—was high energy prices. This has been reflected in prices related to transportation and shipping. Prices for air travel, for example, have seen some of the biggest price increases in recent months, while gasoline (naturally) has fueled sticker stock for households across the nation.
Perhaps most notable to the average consumer has been the increase in gas prices. In June, gasoline prices have risen on average to a new nominal high of over $5 per gallon.
Short of recession (or depression), relief will likely have to come in the form of increasing supply. The easy-money policies of the central bank have fueled spikes in demand for nearly all products, but this leads to a problem: rising demand has not come with rising production. In other words, the regime can easily increase the supply of money, by simply creating money out of thin air. But the regime can’t do the same with oil or gasoline. Unlike fiat money, oil and gasoline must actually be extracted and processed.
So, we end up with increasing supplies of dollars chasing oil and gas supplies that are increasing at a much slower pace. The result is rising price inflation.
Unfortunately, there does not appear to be much relief on the horizon. US bans on Russian oil have disrupted global oil markets and cut off the US consumer from ready imports. This certainly hasn’t helped bring crude oil prices down. But when it comes to gasoline prices, another sizable factor is the fact refineries are running below past capacity. Even when US markets have access to crude oil, gasoline production lags.
Much of this is being blamed on logistical problems stemming from covid lockdowns and the 2020 collapse in demand. As governments across the US forcibly closed businesses and issued stay-at-home orders, many refineries became unprofitable and closed. Shortly thereafter, an avalanche of newly created money whipsawed demand in the opposite direction, and refineries could not keep up. Prices spiked.
Ultimately, the situation only illustrated what more astute observers had pointed out: claims that policy makers can “pause” the economy, and that we need only wait for the “V-shaped recovery” for everything to bounce back to normal were very wrong.
Oil Prices and Gasoline Prices
During the worst days of the covid lockdowns, gasoline prices fell to around a dollar per gallon in many areas. The national average fell to near $2 per gallon in 2022 dollars.
But by late 2021, fueled by trillions in newly printed money, gasoline prices surged to ten-year highs. As of June 2022, gasoline prices have hit new highs of over $5 per gallon. Even in inflation-adjusted terms, gasoline will soon hit some of the highest prices seen in many decades.
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The UK’s Decision to Extradite Assange Shows Why The US/UK’s Freedom Lectures Are a Farce
Posted by M. C. on June 18, 2022
The Assange persecution is the greatest threat to Western press freedoms in years. It is also a shining monument to the fraud of American and British self-depictions.
Real journalists often face threats of prosecution, imprisonment or even murder, and sometimes even mean tweets. Much of the American corporate media class has ignored Assange’s persecution or even cheered it precisely because he shames them, serving as a vivid mirror to show them what real journalism is and how they are completely bereft of it.
https://greenwald.substack.com/p/the-uks-decision-to-extradite-assange?utm_source=email
The eleven-year persecution of Julian Assange was extended and escalated on Friday morning. The British Home Secretary, Priti Patel, approved the U.S.’s extradition request to send Julian Assange to Virginia to stand trial on eighteen felony charges under the 1917 Espionage Act and other statutes in connection with the 2010 publication by WikiLeaks of thousands of documents showing widespread corruption, deceit, and war crimes by American and British authorities along with their close dictatorial allies in the Middle East.
This decision is unsurprising — it has been obvious for years that the U.S. and UK are determined to destroy Assange as punishment for his journalism exposing their crimes — yet it nonetheless further highlights the utter sham of American and British sermons about freedom, democracy and a free press. Those performative self-glorifying spectacles are constantly deployed to justify these two countries’ interference in and attacks on other nations, and to allow their citizens to feel a sense of superiority about the nature of their governments. After all, if the U.S. and UK stand for freedom and against tyranny, who could possibly oppose their wars and interventions in the name of advancing such lofty goals and noble values?
Having reported on the Assange case for years, on countless occasions I’ve laid out the detailed background that led Assange and the U.S. to this point. There is thus no need to recount all of that again; those interested can read the granular trajectory of this persecution here or here. Suffice to say, Assange — without having been convicted of any crime other than bail jumping, for which he long ago served out his fifty-week sentence — has been in effective imprisonment for more than a decade.
In 2012, Ecuador granted Assange legal asylum from political persecution. It did so after the Swedish government refused to pledge that it would not exploit the WikiLeaks founder’s travel to Sweden to answer sex assault accusations as a pretext to turn him over to the U.S. Fearing what of course ended up happening — that the U.S. was determined to do everything possible to drag Assange back to U.S. soil despite his not being a U.S. citizen and never having spent more than a few days on U.S. soil, and intending to pressure their long-time-submissive Swedish allies to turn him over once he was on Swedish soil — the government of Ecuadorian President Rafael Correa concluded Assange’s core civic rights were being denied and thus gave him refuge in the tiny Ecuadorian Embassy in London: the classic reason political asylum exists.
When Trump officials led by CIA Director Mike Pompeo bullied Correa’s meek successor, ex-President Lenin Moreno, to withdraw that asylum in 2019, the London Police entered the embassy, arrested Assange, and put him in the high-security Belmarsh prison (which the BBC in 2004 dubbed “the British Guantanamo”), where he has remained ever since.
After the lowest-level British court in early 2021 rejected the U.S. extradition request on the ground that Assange’s physical and mental health could not endure the U.S. prison system, Assange has lost every subsequent appeal. Last year, he was permitted to marry his long-time girlfriend, the British human rights lawyer Stella Morris Assange, who is also the mother of their two young children. An extremely unusual unanimity among press freedom and civil liberties groups was formed in early 2021 to urge the Biden administration to cease its prosecution of Assange, but Biden officials — despite spending the Trump years masquerading as press freedom advocates — ignored them (an interview conducted last week with Stella Assange by my husband, the Brazilian Congressman David Miranda, on Brazil’s Press Freedom Day, regarding the latest developments and toll this has taken on the Assange family, can be seen here).
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Deflationary Tsunami On Deck: A “Tidal Wave” Of Discounts And Crashing Prices
Posted by M. C. on June 18, 2022
Not everything is set for a deflationary crash: don’t expect luxury items to see price cuts. If anything, luxury prices for things like handbags and shoes are poised to keep climbing, said Oliver Chen, a retail analyst for Cowen: “Demand is so strong, and it’s a supply-constrained industry, generally, so quite the opposite rebalancing is happening.”
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BY TYLER DURDEN
Three weeks ago, we showed readers what happens when the infamous “Bullwhip effect” reversal takes place by presenting the unprecedented surge in the “Inventory to Sales” ratio for a broad range of US retailers covering the furniture, home furnishings and appliances, building materials and garden equipment, and a category known as “other general merchandise,” which includes Walmart and Target. Since then, this ratio has only gotten even more extended, and as shown below it is now at the highest level since the bursting of the dot com bubble!

What does this mean for retailers and the price of goods? Three weeks ago we said “Think: widespread inventory liquidations” and added…
To be sure, not every product will see its price cut: commodities, whose bullwhip effect take much longer to manifest itself, usually lasting several years in either direction, are only just starting to see their price cycle higher. However, other products – like those carried by the Walmarts and Targets of the world – are about to see a deflationary plunge the likes of which we have not seen since the global financial crisis as retailers commence a voluntary destocking wave the likes of which have not been seen in over a decade.
Today both Wall Street and the mainstream media have caught up, with both predicting unprecedented deflationary price cuts in the coming weeks.
We start with Morgan Stanley’s bearish strategist Michael Wilson, who in his latest bearish weekly note (available to pro subs) focused on shrinking margins in general, and on retailer discounting in particular, and wrote that while there is a modest pick up in over sales, the far more concerning issue is that “inventory across the sector is up about 30% YOY and sales growth is up about 0% YOY translating to approximately 30% YOY of excess inventory” and while mark down/margin pressure did not hit in 1Q it should hit June/July. Indeed, “store checks show that aggressive discounting has already started as of the Memorial Day holiday weekend. Discounting pressure could accelerate through July.” And since more retailers are now discounting, “companies are having to offer even bigger discounts to compel consumers to buy, and it is a race to the bottom in margins in order to clear through inventory.”
It gets much worse, however, because courtesy of the delayed nature of the bullwhip effect, Morgan Stanley thinks it will be some time before retailers can cut back on forward inventory orders! Companies are no longer in a position to order 6 months in advance because of delays in the supply chain, and are currently working with about an 8 month lead time. Shockingly, this means decisions today to cut forward orders could begin to eliminate the inventory problem in 1Q23, but not likely before then.
As a result, Wilson concludes, “we are likely to see a tidal wave of discounts that carry us through December because 2022 inventory orders have already been placed.“
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Do you want to feel better?
Posted by M. C. on June 17, 2022
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Mississippi Delta Blues, from Jimmie Rodgers
Posted by M. C. on June 17, 2022
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The Fed Is Winging It: A 75 Basis Point Hike “Seemed like the Right Thing”
Posted by M. C. on June 17, 2022
When asked to quantify how a 75-point hike is better than a 50-point one, Powell had no answer. And will it work? Powell could only say “we’ll know when we get there.”
https://mises.org/wire/fed-winging-it-75-basis-point-hike-seemed-right-thing
The Federal Reserve’s Federal Open Market Committee (FOMC) today announced an increase of 75 basis points to the target federal funds rate, raising the rate to 1.75 percent from 1 percent. June’s meeting today was the third meeting this year at which the FOMC has raised rates. Coming into the March meeting this year, however, the FOMC had not raised the target rate since March 2020, even though price inflation began to accelerate during the second half of 2021.

Today’s 75 basis point increase is the largest increase since late 1994, when the FOMC raised the target rate from 4.75 percent to 5.5 percent.
Notably, however, this increase comes mere weeks after the Fed chair Jerome Powell slapped down the idea of a 75 basis point increase in June. As Reuters reported on May 4, Powell had insisted “a 75 basis point increase is not something that the committee is actively considering.”
That didn’t last long.
The fact that the Fed was forced to hike the target rate by more than it had suggested was even possible earlier in the year is a reminder that the Fed and its economists are simply in a reactionary mode when it comes to the US economy’s problem with mounting price inflation.
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