What Will You Do When Inflation Forces U.S. Households To Spend 40 Percent Of Their Incomes On Food?

Did you know that the price of corn has risen 142 percent in the last 12 months?  Of course corn is used in hundreds of different products we buy at the grocery store, and so everyone is going to feel the pain of this price increase.  But it isn’t just the price of corn that is going crazy.  We are seeing food prices shoot up dramatically all across the industry, and experts are warning that this is just the very beginning.  So if you think that food prices are bad now, just wait, because they are going to get a whole lot worse.

Typically, Americans spend approximately 10 percent of their disposable personal incomes on food.  The following comes directly from the USDA website

In 2019, Americans spent an average of 9.5 percent of their disposable personal incomes on food—divided between food at home (4.9 percent) and food away from home (4.6 percent). Between 1960 and 1998, the average share of disposable personal income spent on total food by Americans, on average, fell from 17.0 to 10.1 percent, driven by a declining share of income spent on food at home.

Needless to say, the poorest Americans spend more of their incomes on food than the richest Americans.

According to the USDA, the poorest households spent an average of 36 percent of their disposable personal incomes on food in 2019…

As their incomes rise, households spend more money on food, but it represents a smaller overall budget share. In 2019, households in the lowest income quintile spent an average of $4,400 on food (representing 36.0 percent of income), while households in the highest income quintile spent an average of $13,987 on food (representing 8.0 percent of income).

Needless to say, the final numbers for 2020 will be quite a bit higher, and many believe that eventually the percentage of disposable personal income that the average U.S. household spends on food will reach 40 percent.

That would mean that many poor households would end up spending well over 50 percent of their personal disposable incomes just on food.

At one time that would have been unimaginable, but now everything is changing.  As I noted above, the price of corn his increased 142 percent since this time last year…

Corn prices have jumped roughly 142% over the past year to $7.56 per bushel, the highest price seen in eight years for the crop.

A drought in Brazil and increased demand in China have put pressure on global suppliers.

In other areas we are seeing more moderate inflation, but overall we just witnessed the largest increase in food inflation “in almost nine years”

The average prices in March of 2021 for pork chops and chicken breasts are both up more than 10% compared to March of 2020. Eggs and cheddar cheese are both up 6%.

Looking at all consumer goods as a whole, the latest inflation data in the Consumer Price Index from the U.S. Bureau of Labor Statistics shows the largest month-to-month increase in almost nine years.

Meanwhile, the price of lumber just continues to shoot even higher.

In New Jersey, one man says that the total cost of lumber used in building his new home will reach $70,000

Tom McCarthy can’t finish building a home in Bergen County, New Jersey because of the lumber shortage.

“There are pieces of wood that we can’t find,” said McCarthy, a real estate broker with the Chen Agency who also builds homes with his father on the side.

McCarthy estimates the cost of lumber for the home will hit $70,000, nearly double the cost of building the exact same home in a nearby town just eight months ago.

Isn’t that nuts?

Instead of building a new home, you could try buying an existing one instead, but real estate prices in many areas have gotten completely insane.

In northern California, one house recently sold for more than a million dollars over listing price

When a house in Berkeley sold for more than $1 million over its list price in late March 2021, it was covered in media outlets across the Bay Area, including this one.

While the Berkeley sale was particularly sensational — it sold for double its list price and received 29 offers — these individual stories are becoming more common in today’s real estate market, according to recent data and anecdotes from real estate professionals.

I never imagined that I would see such a thing happen.

But one real estate agent says that such wild bidding wars are becoming increasingly common

And that’s especially true in the East Bay. “People are not surprised when a home goes $1 million over,” said Josh Dickinson, the founder of real estate agency Zip Code East Bay. “When my clients see a house for $1.9 million they’re almost conditioned to think it’ll go over $3 million in Piedmont or North Berkeley.”

This is what the beginning stages of hyperinflation look like, but Federal Reserve officials insist that we have nothing to be concerned about.

In fact, Eric Rosengren just told the press that the crazy inflation we are seeing now “is likely to prove temporary”

Boston Federal Reserve President Eric Rosengren in an interview with MarketWatch on Wednesday dismissed talk of scaling back asset purchases as premature, and said temporary factors pushing up inflation this spring won’t last.

“My view is that this acceleration in the rate of price increases is likely to prove temporary,” Rosengren said Wednesday.

Do you believe him?

I don’t.

As Simon Black has pointed out, the federal government is just going to continue to borrow and spend trillions upon trillions of dollars…

This is the big one. The US federal government is hoping to spend a whopping $11 TRILLION this year, between the regular budget, COVID stimulus already passed, and all the new legislation they’re proposing.

And it’s only May.

Obviously Uncle Sam doesn’t have the money. So they have to borrow it.

Almost everybody loved it when the federal government started sending out big, fat stimulus checks.

But you aren’t going to love it when a cart of food costs you $400 at the grocery store.

Whenever the government hands out “free money”, someone has got to pay for it, and one way we are paying for it is through higher prices.

If you do not believe that this is a major national crisis yet, you will soon, because it won’t be too long before most of the country is loudly complaining about how nightmarish inflation has become.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

We Are Dangerously Close To “The Tipping Point”

Every dollar that the federal government borrows and spends puts us even closer to a day of reckoning.  Many Americans (especially those on the left) seem to think that we can endlessly spend trillions upon trillions of dollars without ever suffering any consequences.  If that was true, why hasn’t any other society in all of human history ever been able to do such a thing?  Unfortunately, the truth is that the United States is not immune to the laws of economics.  Wildly creating money and driving up our national debt to absurd heights is inevitably going to crush our economic system.  And at this point, our debt-to-GDP ratio is already higher than Greece’s debt-to-GDP ratio was when the economy of that country finally collapsed

But it’s worth noting that the US debt-to-GDP ratio—essentially a country’s debt compared to its annual economic output—was 129 percent at the end of 2020. In other words, the official US debt was nearly a third larger than the entire US economy.

That is considerably higher than Greece’s debt-to-GDP ratio in 2010, when it received a bailout from the International Monetary Fund to avoid defaulting on its obligations.

Even though we are already at such a dangerous level, the Biden administration wants Congress to pass another four trillion dollar spending package

Senate Minority Leader Mitch McConnell, R-Ky., said Monday that he did not expect any Republican senator to support President Biden’s push for a $4 trillion spending package on infrastructure and other projects.

Biden has outlined a two-part tax and spend proposal with funding for physical infrastructure projects as well as initiatives favored by his administration, such jobs training, elderly care and universal preschool. McConnell reiterated that the $4 trillion price tag was a nonstarter for Republicans, as well as some Democrats, who favor a smaller plan directly tied to infrastructure projects such as roads and bridges.

We simply don’t have the money to do what Biden wants.

In fact, we didn’t have the money for any of the “stimulus packages” that have been passed since the start of the pandemic.

We had to borrow every single dollar that went out in the “stimulus checks”, and now Democratic lawmakers are “clamoring” for a fourth round of those checks…

Democratic lawmakers in both chambers of Congress are clamoring for a fourth round of stimulus checks to help Americans who are still struggling financially during the coronavirus pandemic.

Such a move could lift more than 7 million people out of poverty, according to a recent analysis from the Urban-Brookings Tax Policy Center, a nonpartisan think tank.

If more money is the solution, then why don’t we send out five billion dollars to every American citizen?

That would certainly fix all of our problems, right?

Everyone would be a “billionaire”, and then life in American would be glorious.

Or not.

Sadly, the truth is that our “leaders” are systematically destroying the value of our currency and are plunging us into an abyss of debt from which our nation will never recover.

I warned that once the government started sending checks directly to the American people that it would never be enough.

At this point, people are begging for more checks even though 34 percent of all U.S. income now comes directly from the federal government

Putting that number in perspective, in the 1950s and 1960s, transfer payment were around 7%. This number rose in the low teens starting in the mid-1970s (right after the Nixon Shock ended Bretton-Woods and closed the gold window). The number then jumped again after the financial crisis, spiking to the high teens. And now, the coronavirus has officially sent this number to a record 34%!

And that’s how creeping banana republic socialism comes at you: first slowly, then fast.

We are not on the road to socialism.

We are already there.

In fact, the U.S. has been a socialist country for quite a while now.  We may not use the term “socialist” to describe ourselves, but that is precisely what we have become.

As our system melts down right in front of our eyes, many in the financial community are trying to figure out how to protect themselves.

For example, legendary investor Sam Zell has never been very enthusiastic about gold, but now he is suddenly changing his tune

“Obviously one of the natural reactions is to buy gold…It feels very funny because I’ve spent my career talking about why would you want to own gold? It has no income, it costs to store. And yet, when you see the debasement of the currency, you say, what am I going to hold on to?”

Other Americans are preparing for the coming meltdown in other ways.  As crime rates in our cities continue to spike, more Americans than ever before are buying guns

The FBI conducted more than 3.5 million gun-related background checks last month, a 20% year-over-year increase from April 2020, according to the latest FBI figures released Monday.

Nearly 1.7 million of those gun background checks were specifically for gun purchases, according to the National Shooting Sports Foundation, a firearms industry trade group that cross references FBI data with actual sales figures provided by gun merchants to determine how many guns are sold monthly.

NSSF spokesman Mark Oliva said the firearms industry sold more guns last month than in any April on record.

Deep in their guts, most people can feel that our society is rapidly approaching a “tipping point”.

Nobody knows the exact moment when we will have passed the point of no return, but just about everyone can sense that it is coming.

Every single day, U.S. consumers go into even more debt.

And every single day, U.S. corporations continue to binge on debt as if tomorrow is never going to arrive.

State and local governments continue to pile up record levels of debt, and the federal government is literally stealing more than 100 million dollars from future generations of Americans every single hour of every single day.

We should be thankful that this unprecedented debt bubble has been able to persist for as long as it has, but there is no way that this party can go on forever.

Soon it will end, and that means that our current way of life will soon come to an end as well.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

So This Is How The U.S. Dollar Dies…

Our leaders are killing the U.S. dollar, and it is being done to thunderous applause.  The House and the Senate have now both passed the 1.9 trillion dollar “COVID relief bill”, and it will go to Joe Biden’s desk for his signature.  Of course we don’t actually have 1.9 trillion dollars to spend on yet another “COVID relief” package.  In fact, we don’t even have one dollar to spend on another “COVID relief” package.  Every single dollar that is spent will have to be borrowed, and that will soon push our national debt beyond the 30 trillion dollar mark.  Sadly, our politicians seem convinced that giant mountains of dollars can be printed, borrowed and spent indefinitely without any repercussions, and most Americans fully support what they are doing.  In fact, one recent poll found that a whopping 78 percent of all Americans support more stimulus checks…

A huge majority of Americans, including nearly two-thirds of Republicans, support the $1,400 stimulus checks President Biden is calling for, and his full $1.9 trillion stimulus proposal also has strong public backing, according to a new poll from Quinnipiac University.

The poll found that 78 percent of Americans supported the stimulus checks, including 90 percent of Democrats and 64 percent of Republicans — suggesting that Republicans in Congress who want to reduce the checks to $1,000 are out of step with their constituents on this issue.

If you are in that 78 percent, you are wrong.

Yes, it is nice to get a big, fat government check in the mail.  But in the process we are rapidly destroying our currency, and what we are doing to future generations of Americans is beyond criminal.

Previous COVID relief bills have had wide bipartisan support, but this one passed almost entirely along party lines

The final vote Saturday in the Senate was 50-49 with all Republicans voting against the measure and all members of the Senate Democratic caucus supporting it. Sen. Dan Sullivan, R-Alaska, was not present for the vote. In the House, it didn’t earn a single Republican vote in the two times the bill came to a vote.

Biden ran on his ability to broker bipartisan efforts on Capitol Hill, drawing on his 36 years in the Senate and eight years as vice president. Republicans have viewed the bill as a betrayal of the bipartisanship Biden embraced and spoke of during his campaign.

This is being called a “big win” for Biden, and when Pelosi announced that the bill had passed the House she did a little “shimmy“…

House Speaker Nancy Pelosi announced the 220-211 vote result from the chair, prompting the bill’s supporters to burst into applause. Just a single Democrat voted against it.

Her glee at the outcome was evident even though she had a mask on. She executed what her daughter Christine called a ‘shimmy’ as she gaveled down the vote in a chamber where a five-vote majority gave her very little wiggle room.

After the vote was over, House Minority Leader Kevin McCarthy referred to the COVID relief package as “socialism”

House Minority Leader Kevin McCarthy, R-Calif., described it as a “laundry list of leftwing priorities” that “do not meet the needs of American families.”

“It is very liberal,” he said. “They called this the most progressive piece of legislation in history. For those who are watching, progressive means socialism.”

He is right, but I just wish that he would have figured that out several COVID relief packages ago.

Because the truth is that what we have already done to our currency is absolutely nightmarish.  The following is the latest M1 chart from the Federal Reserve…

Thanks to our wild spending politicians and unprecedented intervention in the financial markets by the Federal Reserve, we have now entered an era of hyperinflation.

It took from the founding of the United States to 2020 for M1 to get to 4 trillion dollars.

And then it took about one year for M1 to go from 4 trillion dollars to 18 trillion dollars.

This is utter madness.

Of course the chart above doesn’t even reflect the impact that this new COVID relief package will have.  Another 1.9 trillion dollars is about to be poured into the system, and that will make things even worse.

Needless to say, most Wall Street investors are absolutely thrilled that another tsunami of money is coming.  One recent poll found that “37% of Main Street investors” plan to pour stimulus money directly into the Wall Street casino…

A recent Deutsche Bank survey found that 37% of Main Street investors, some of who could be members of the Reddit community, will plow a “large chunk” of stimulus money, about $170 billion, “directly into equities.”

These small but mighty investors have gained notoriety in recent months, creating volatility and heavy volume in a number of heavily shorted stocks, such as GameStop Corp., AMC Entertainment Holdings Inc. and Bed Bath & Beyond Inc.

That should be very good news for stocks, but of course a major “trigger event” could crash the market at any time.

So we will have to wait and see how all of this plays out.

Meanwhile, Joe Biden just announced that he will unveil “the next phase” of his administration’s response to the pandemic on Thursday

Just hours after the House passed the Democrats’ $1.9 trillion stimulus package (which will unleash another wave of “stimmies” that will inevitably find their way into millions of Robinhood and other discount brokerage accounts), President Joe Biden said Wednesday that he would unveil “the next phase” of the US COVID-19 response on Thursday, which is also the one-year anniversary of the first COVID-inspired lockdowns in the US.

Even if more stimulus checks are not involved, any new programs that Biden announces will cost money, and that involve more borrowing.

We are printing, borrowing and spending our way into oblivion, and we have nobody but ourselves to blame.

As I was preparing to write this article, I just kept thinking of the scene from one of the Star Wars movies where Emperor Palpatine announces that the Republic will be reorganized as “the first Galactic Empire”, and the Senate erupts in applause.

Our Republic is dying too, and our politicians are gleefully murdering the reserve currency of the entire planet.

This is not going to end well, but you already knew that.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Does Anyone Even Care That The U.S. National Debt Will Soon Cross The 30 Trillion Dollar Mark?

I didn’t think that this would happen.  A few years ago when the U.S. national debt crossed the 20 trillion dollar mark, I didn’t think that it would ever get to 30 trillion.  But at this moment the U.S. national debt is around 28 trillion dollars, and our politicians in Washington are about to pass a 1.9 trillion dollar “relief bill”.  We are going to have to borrow every single dollar that we spend in that bill, and that will be on top of all of the “normal” borrowing that we are already doing.  So by the end of 2021, the U.S. national debt will cross the 30 trillion dollar mark.  I am sitting here searching for words that will do justice to how foolish this is, but I can’t seem to find any.  We are literally in the process of committing national financial suicide, but fewer Americans seem to care about budget issues than ever before.

According to the Bureau of Economic Analysis, U.S. GDP declined to 20.93 trillion dollars in 2020.

So once our national debt crosses the 30 trillion dollar mark, our debt to GDP ratio will be surging toward 150 percent.

That is madness.

But most Americans are greatly in favor of the 1.9 trillion dollar COVID “relief bill” that is currently going through Congress, because it includes more direct “stimulus payments” to the American people.

Of course most of the money in the bill is not going directly to the American people.  In fact, one analysis found that direct payments only account for about 35 percent of all money allocated…

About 22% of the total bill comes from the $422 billion set aside for $1,400-per-person stimulus checks. Another 13% ($246 billion) is for extending additional unemployment funding of $400 a week.

And that was before Joe Biden and moderate Democrats in the Senate agreed to dramatically reduce the number of Americans that will qualify for payments

President Joe Biden has agreed to a compromise with moderate Democrats to narrow the income eligibility for the next round of $1,400 stimulus checks that are included in a bill the Senate is expected to take up this week, a Democratic source told CNN Wednesday.

That means 7 million fewer families will receive a partial payment than would have under the House version of the bill, according to an estimate from the Penn Wharton Budget Model. The new proposal will completely cut off those who earn more than $160,000 a year and individuals who earn more than $80,000 a year.

Much of the money in the “relief bill” is actually going to go to “pork projects” that are favored by prominent Democrats.  Here are just a few examples

PolitiFact rated “Mostly True” a claim from conservative Stand for America that the bill contains unrelated projects. Examples cited in that fact check included a $1.5 million bridge connecting New York and Canada; a $100 million underground rail project in Silicon Valley; $480 million for Native American language preservation and maintenance; and $50 million in environmental justice grants.

It looks like some of those “pork projects” won’t make it into the final version of the bill that gets signed by Biden, but there will still be billions upon billions of dollars of wasteful spending.

But what does a billion dollars matter anyway, right?

After all, a stack of a billion one dollar bills would only be about a half mile high

If you were to stack $100 bills on top of each other, one million dollars would be around the three feet mark – about the height of a chair or a toddler.

And if you keep stacking the $100 bills, eventually past the peak of the world’s tallest building, going a little over half-a-mile into the air, this would be one billion dollars.

A trillion dollars is another matter.

In order to get to a trillion dollars, you would need a stack of one dollar bills that would go beyond the orbit of the International Space Station

This would have you stacking $100 bills into the stratosphere and past the International Space Station. You would have to stack these bills 631 miles above Earth’s crust. That would equal one trillion dollars. Now imagine 28 stacks of 631 mile-high $100 bills.

That’s America’s debt.

We are trapped in an endless debt spiral that has accelerated greatly over the past couple of years.

The only way to keep the game going is to keep creating, borrowing and spending more money, and in the process we are literally wiping out the bright future that our children and our grandchildren were supposed to have.

Thomas Jefferson tried to warn us about the dangers of a large national debt

I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared…. To preserve our independence, we must not let our rulers load us with perpetual debt…. We must make our choice between economy and liberty or profusion and servitude…. If we run into such debts, we must be taxed in our meat and drink, in our necessities and our comforts, in our labors and in our amusements…. If we can prevent the Government from wasting the labors of the people, under the pretense of caring for them, they will be happy.

But even though we were the wealthiest and most prosperous nation on the entire planet, we just couldn’t help ourselves.

We just had to keep spending money that belonged to our children and our grandchildren, and now we have accumulated the greatest mountain of debt in the history of humanity.

Jefferson understood that government debt was a way for one generation to steal money from other generations

“The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”

Since Barack Obama first entered the White House, we have been stealing more than 100 million dollars from future generations of Americans every single hour of every single day.

Just think about that.

What we are doing to future generations of Americans is beyond criminal.

Of course if we stay on the path that we are currently on, there won’t be an America at all.

Can someone out there explain to me how this story can possibly end well?

I have been asking versions of that question for years, and nobody has ever risen to the challenge.

That is because it is obvious to everyone that our story is going to end tragically.

In our insatiable greed, we are systematically destroying the United States of America, and we should be utterly ashamed of ourselves.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Someone Please Tell Powell, Yellen And Biden That We Are Going To Need A Lot More “Weimar Money”…

Volatility has returned to Wall Street, and it appears that our absolutely epic stock market bubble may be in serious trouble.  The S&P 500 closed down for the fifth trading session in a row on Monday, and that represents the longest losing streak that we have seen since last February.  Investors are starting to get quite nervous, because for most of the past year stock prices have gone in just one direction.  Even as the real economy has imploded all around us, there has been tremendous euphoria on Wall Street as stock prices have surged to dizzying heights.  If stock prices were allowed to crash, that would definitely not be good for the national mood at all.

So what is the solution?

This stock market bubble was originally created by unprecedented intervention by the Federal Reserve and by extremely wild borrowing and spending by the U.S. government, and in order to keep the bubble going we are going to need a lot more of the same.

So someone needs to tell Federal Reserve Chair Jerome Powell that it is time to go “full Weimar” so that we can prop up this bubble for as long as humanly possible.

For a while there in 2020, the Fed’s balance sheet was increasing at a nearly vertical pace, but in recent months it has only been going up at an exponential rate

If the Fed wants to keep stock prices at their current levels, Powell and his minions need to fire up the engines again.

Meanwhile, the federal government has work to do as well.  If our politicians in Washington really want stock prices to remain ridiculously high, they need to send more checks to the American people as soon as possible.

The effects of the last round of checks is already starting to wear off, and retail investors need more “stimulus money” to fritter away in their Robinhood accounts.

The good news for Wall Street is that Treasury Secretary Janet Yellen has reiterated her call for a large stimulus package, and Joe Biden has said that he is ready to sign one into law.

Of course at this point poor old Joe signs anything that his handlers put on his desk.

We haven’t added another trillion dollars to the national debt in a few months, and investors are quite eager to see our grand total cross the 28 trillion dollar mark.  Most of them believe that more stimulus money will mean higher stock prices, but more stimulus money will also cause our money supply to grow even larger.

Since the start of the pandemic, M1 has been growing at a rate that would put the Weimar Republic to shame…

When I look at that chart, I feel like I am going to throw up.

But the only way to “save Wall Street” is to throw more giant mountains of money on to the fire.  If we don’t go “full Weimar”, stock prices might crash to reasonable levels, and investors would be absolutely horrified.

And we are already starting to see warning signs.  Just look at what happened to Tesla on Monday

Shares of Tesla closed down 8.55% on Monday, as investors betting on a pandemic comeback rotated out of Big Tech and piled into cyclical stocks.

It’s Tesla’s biggest drop since Sept. 23, 2020, when it closed down 10.34%.

Do you want to be responsible for Tesla investors losing hundreds of billions of dollars in paper profits?

If not, then you need to support more printing, more borrowing and more spending.

Of course I am being facetious in this article.

By going down the road of hyperinflation, we are systematically destroying the value of the reserve currency of the world, we are piling up trillions of dollars of debt that future generations would never possibly be able to repay, and we are setting the stage for the inevitable meltdown of our current financial system.

In other words, we are literally committing national suicide.

Following World War I, they did the exact same thing in Germany.

The Weimar Republic created money like there was no tomorrow, and at first it fueled a tremendous speculative boom.  Just a couple days ago, Michael Burry posted about this on his Twitter account

“Speculation alone, while adding nothing to Germany’s wealth, became one of its largest activities. The fever to join in turning a quick mark infected nearly all classes..Everyone from the elevator operator up was playing the market.”

But that bubble didn’t last, did it?

Germany plunged into a horrific economic depression that shocked the entire world.  Eventually, people were running around with wheelbarrows full of cash to pay for things, but nobody wanted the money because it was so worthless.

And of course the collapse of the Weimar Republic set the stage for World War II.

So why do we refuse to learn from history?

Sadly, it isn’t just the U.S. that is going down a hyperinflationary path.  Governments all over the globe have been printing, borrowing and spending money at unprecedented levels, and now the ratio of the world’s debt to GDP has reached a staggering 356 percent

The world’s debt-to-GDP ratio rose to 356% in 2020, a new report from the Institute of International Finance finds, up 35 percentage points from where it stood in 2019, as countries saw their economies shrink and issued an ocean of debt to stay afloat.

We all know how this story ends.

It ends with an absolutely nightmarish global economic collapse.

I have been sounding the alarm for years, and many others have as well.

Unfortunately, those warnings have gone unheeded.

Even though our forefathers handed us the keys to the greatest economic machine the world had ever seen, in our insatiable greed we always had to have more.

We just kept borrowing and spending, and many of us assumed that our self-destructive behavior would never actually catch up with us.

Disaster didn’t strike when our national debt hit 10 trillion dollars, and it didn’t strike when it hit 20 trillion dollars either.

To a lot of Americans, it seemed like we could keep this charade going indefinitely.

But now we are facing a day of reckoning, and the price for going “full Weimar” is going to be very bitter indeed.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

We Must Have MOAR: Almost Everyone In Washington Seems To Agree That More Free Money Will Fix The Economy

There seems to be a growing consensus in Washington that the only way to fix the worst economic downturn in more than 70 years is by giving out much more free money.  Joe Biden wants more “stimulus”, Treasury Secretary Janet Yellen wants more “stimulus”, and most members of Congress from both parties want more “stimulus”.  Of course none of the previous “stimulus packages” that we spent trillions of dollars on fixed the economy, but they insist that this latest one will finally do the job.  In addition to the 1.9 trillion dollar package that Biden has already proposed, Democrats in Congress are now pushing monthly direct payments to parents that have children under the age of 18.  Needless to say, that proposal has overwhelming support among the American people, because direct socialist payments have become wildly popular since they were first introduced last year.  But by borrowing and spending so much money, we are literally committing national suicide, but very few people are concerned about that at this point.

Even though the previous round of “stimulus payments” is still being sent out, Biden and his minions can’t wait to start sending out another round.

In fact, Biden insists that we literally “don’t have a second to waste”

“We don’t have a second to waste when it comes to delivering the American people the relief they desperately need. I’m calling on Congress to act quickly and pass the American Rescue Plan.”

Quite a few independent economists are alarmed by the inflation that previous “stimulus payments” have created, but Treasury Secretary Janet Yellen is dismissing those fears.

Instead of focusing on inflation, she says that not sending out more free money would be an even greater risk

“As treasury secretary, I have to worry about all of the risks to the economy, and the most important risk is that we leave workers and communities scarred by the pandemic and the economic toll that it’s taken, that we don’t do enough to address the pandemic,” Yellen told CNN’s “State of the Union” on Sunday.

“I’ve spent many years studying inflation and worrying about inflation, and I can tell you, we have the tools to deal with that risk if it materializes,” she continued. “But we face a huge economic challenge here and tremendous suffering in the country. We’ve got to address that. That’s the biggest risk.”

She is assuring us that inflation is not an imminent threat, and perhaps we should believe her.

After all, if we can just completely ignore the hard numbers and the extremely shocking charts the Federal Reserve keeps putting out, what she is saying sounds pretty good.

I know that it is not “normal” for M1 to nearly double over the course of 12 months, but this is the “new normal” where the laws of economics are suspended and we can do whatever we want.

So let’s borrow and spend trillions more, because this party is just getting started.

A while back, “Republican” Senator Mitt Romney proposed thousands of dollars in direct payments to parents with children, and Democrats liked that idea so much that they plagiarized it

Under the proposal, the Internal Revenue Service would provide $3,600 over the course of the year per child under the age of 6, as well as $3,000 per child of ages 6 to 17. The size of the benefit would diminish for Americans earning more than $75,000 per year, as well as for couples jointly earning more than $150,000 per year. The payments would be sent monthly beginning in July.

The benefits would not be deducted off taxpayers’ existing tax liability, meaning American parents would still receive $250 per month per child — or $300 per month per young children — even if they have an existing tax obligation with the IRS.

I think that this proposal will have a 90 percent approval rating with U.S. parents.

Of course a minority will strongly object.  They will insist that these are “socialist welfare payments” and that the federal government should not be doing this.

If you are one of those objectors, you are 100 percent correct.

But take the money anyway.

Let me be 100 percent serious for a moment.  Since the entire ship is going down anyway, take anything that they send to you and use it for yourself and your family.  At this point, survival is the priority.

There is no going back to the way that things once were.  We are literally committing national financial suicide, and at this point even most Republicans in Washington have completely discarded any pretense of fiscal responsibility.

In the old days, Republicans in Congress at least made minimal attempts to slow down the wild spending that the Obama administration was pushing.  But now almost all resistance is gone, and the left is greatly rejoicing that “the path to a fast recovery and an era of prosperity is now open for Biden”…

The left has stewed for a dozen years over Obama’s inability to secure more fiscal stimulus. And while he might perhaps have gotten a bit more out of Congress with more clever design, ultimately the most important constraints came from outside 1600 Pennsylvania Avenue. Obama’s economic-recovery push came in an atmosphere of pure hysteria, in which media and business elites joined by many members of his own party believed the United States stood on the precipice of hyperinflation and a public-debt crisis, the resolution of which had willing partners across the aisle. All those myths now lay in tatters. After hard experience, the path to a fast recovery and an era of prosperity is now open for Biden.

Yeah, we’ll see about that.

But what we do know is that all of the insane borrowing and spending that has been going on is already causing inflation to show up in countless ways.

In 2020, silver performed even better than the stock market did, and it continues to climb higher.

Gold has been surging too, and the outlook for precious metals is going to continue to be bright as long as our leaders continue to flood the system with more money.

Meanwhile, the real economy continues to steadily deteriorate

Without a fresh round of COVID-19 aid from the federal government, about a third of the nation’s pandemic-stricken small businesses are warning they won’t be able to survive.

That’s according to a new report published by the Federal Reserve, which found that sales for 88% of small businesses have not yet returned to pre-crisis levels. About one in three — roughly 30% — of businesses said they expected they could not stay afloat without further assistance from the government, according to the report from the U.S. central bank’s 12 regional offices.

No amount of complaining from the rest of us will prevent a new round of stimulus payments from going out.

The good news is that all of this new money is likely to improve short-term economic conditions for a very brief period of time.

But the bad news is that our long-term problems continue to get much, much worse.

We are literally in the process of completely destroying our money, and since the U.S. dollar is the de facto reserve currency of the whole world, the economic fate of the entire globe is in our hands.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Now That Universal Basic Income Checks Have Started, The American People Will Go Mad If They Don’t Continue

We crossed a line that should have never been crossed when we sent “stimulus payments” directly to the American people during the very early stages of the COVID pandemic.  Even many Republicans that supported the measure acknowledged that what they were doing was pure socialism, but they defended the payments by insisting that we were in the middle of a major national emergency.  At the time, I warned that once the government started issuing such checks, the American people would always keep demanding more.  When it was announced that the latest round of “stimulus payments” would only be $600 per person, angry activists vandalized Nancy Pelosi’s house.  Of course they got Mitch McConnell’s house too.  In both cases, the vandals made it exceedingly clear that they wanted more government money.

Sadly, it wasn’t just a handful of activists that went ballistic.  Literally millions of enraged Americans posted angry messages on social media that expressed how “insulting” the $600 figure was.

But prior to this pandemic, the U.S. government had never sent out “universal basic income” checks in the entire history of our country.

So you would think that most people should be grateful for an extra $600, but instead there was a tremendous amount of rage.

President Trump wanted the payments raised to $2000 and many Democrats did as well.  But Republicans still had control of the Senate, and Mitch McConnell initially blocked that effort.

But now Democrats will shortly have control of the White House, the Senate and the House of Representatives, and one of the first things they plan to do is to deliver $2,000 checks to the American people

Even while $600 stimulus checks are being deposited in tens of millions of bank accounts, congressional Democrats are laying the groundwork for even greater stimulus payments, which some call “survival checks.” As Senate democratic leader Chuck Schumer (D-NY) recently said, “One of the first things that I want to do when our new senators are seated is deliver the $2,000 checks to the American families.” With Democrats preparing to take power in Washington, a critical question will be whether such survival checks will be one-time payments or recur each month “for the duration of the pandemic,” as Senator Ed Markey (D-MA) and others have suggested.

That may pacify the socialist mobs for a month or two, but eventually they will be back for even more payments.

As the voices get angrier and angrier, do you think that anyone in Washington will be willing to stand up and say no?

The incoming Vice-President, Kamala Harris, previously proposed giving out monthly $2,000 checks for the duration of this pandemic

Recurring monthly $2,000 checks would mirror the payments proposed in the “Monthly Economic Crisis Support Act” that Vice President-elect Kamala Harris (D-CA) introduced in the Senate in May 2020.

If you are married with three kids, you would have gotten $10,000 every month under her plan.

Considering where we are as a society today, I think that most Americans would have been very eager to sign up for that.

Of course the price tag for such a plan would be nightmarish.  It would have been approximately $600 billion every month, and that would mean that it would add more than 7 trillion dollars to our national debt over the course of an entire year.

But since we are liquidating the Republic anyway, who really cares?

Harris insisted that her plan would end once the crisis was over.

Other politicians, however, are ready to start giving citizens “universal basic income” checks on a permanent basis starting right now.  For example, Andrew Yang is making this the signature promise of his campaign as he runs for mayor of New York City…

Former 2020 Democratic presidential candidate Andrew Yang has officially started his run to succeed Bill de Blasio as Mayor of New York City with a call for a universal basic income for half-a-million of the city’s poorest residents.

Yang insists that by giving everyone free money every month he can “eradicate poverty” in NYC…

“We can eradicate extreme poverty in New York City,” Yang said. “If you put just a little money in their hands it can actually be what keeps them in their home and, again, avoids them hitting city services that are incredibly expensive.”

That sounds good, but who is he going to tax in order to pay for it?

After all, hundreds of thousands of wealthy people already left the city during 2020.

The truth is that it is a pipe dream, but that pipe dream is going to win him a whole lot of votes.

Benjamin Franklin once made the following statement

“When the people find that they can vote themselves money that will herald the end of the republic.”

Sadly, we have now reached that point.

And this comes at a time when tens of millions of Americans are in desperate need because the real economy continues to implode all around us.

For example, we just learned that Christopher & Banks has gone belly up

Apparel retailer Christopher & Banks, which caters to women over 40, is the latest clothing chain to file for bankruptcy protection amid the coronavirus pandemic.

The Minneapolis-based company announced Thursday it filed for Chapter 11 in the United States Bankruptcy Court for the District of New Jersey. Christopher & Banks said in a news release it “expects to close a significant portion, if not all, of its brick-and-mortar stores.”

Thousands of businesses have been dying every month.  As I discussed the other day, the U.S. has lost more than 110,000 restaurants alone.

And to make sure that most of the businesses that have died can never possibly make a comeback, Joe Biden wants to institute “a national minimum wage of $15 an hour”.

Promising people more money is a great way to win elections, but at the end of the day someone always has to pay.

As the U.S. economy continues to come apart at the seams, finding sources of tax revenue will become increasingly difficult.

Perhaps the big tech companies can step up and offer to dramatically enlarge their contributions to the U.S. Treasury.

After all, they were quite instrumental in giving control of the federal government to the Democrats, and so you would think they should be quite willing to help pay for their promises.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

$600 Stimulus Checks Won’t Pull America Out Of This Mess…

Well, it looks like we are going to get $600 stimulus payments from the federal government after all.  Oh goody!  For the millions of Americans that are on the brink of being evicted from their homes, that will be enough for about half a mortgage payment or about half a month of rent.  Many are referring to this as America’s “let them eat cake moment”, and that probably is not too far off target.  As our politicians spend hundreds of billions of dollars on other nonsense, we are supposed to be deeply grateful to them for tossing a few hundred bucks our way.  But the truth is that $600 dollars does not go as far as it once did.  20 years ago, it would have bought more groceries than any of us could have possibly put into a single vehicle, but today it will buy about two carts of food and maybe a tank of gas.

If we are going to go “full Weimar” and destroy any hope of ever getting our national finances under control, we might as well make the checks big enough to smile about.

But while you get a measly $600, the federal government is spending $6,900,000 on a “smart toilet” which can actually recognize a user’s “analprint”…

In his latest report on federal government waste, a project he completes every year, Sen. Rand Paul (R-Ky.) highlights $54.7 billion in government spending that he deems wasteful. Among the items noted this year is the creation of a $6.9 million “smart toilet,” which operates with three cameras, one of which can identify a user’s “analprint.”

As explained in The Festivus Report 2020, researchers at Stanford University used $6,973,057 in funds granted through the National Cancer Institute, which is part of the National Institutes of Health (NIH) to create a so-called “smart toilet.”

Really?

Just when I think that it can’t possibly get any worse, the federal government comes up with even more bizarre ways to waste our tax dollars.

At least if we were only spending what we brought in I could live with that.  But instead, we have been stealing more than $100,000,000 dollars from future generations of Americans every single hour of every single day ever since Barack Obama first entered the White House.

I am not just picking on the Democrats.  At this point most Republicans have abandoned any pretense of fiscal responsibility, and that fact makes me sick to my stomach.

Today, we are 27.5 trillion dollars in debt, and soon it will be 30 trillion dollars.

If we are going to liquidate the nation anyway, let’s give people checks that are so large that they will be dancing in the streets.

Because giving people $600 checks in this economic environment is essentially the equivalent of spitting into Niagara Falls.

Let me try to illustrate what I am talking about.  Right now, there are 12 million U.S. renters that are more than $5,000 behind on their rent and utilities…

The newest data from Moody’s Analytics shows about 12 million renters are now at least $5,850 behind in rent and utilities payments — and eviction protections expire in weeks.

Okay, so let’s assume that all of those people get $600 payments on a timely basis.

In the end, on average they will still be about $5000 behind on their payments, and the start of a new month is right around the corner.

And there are millions of other Americans that are living so close to the edge financially that they have been putting their rent payments on a credit card

There’s been as much as a 70% percent increase from last year in people paying rent on a credit card, according to an analysis by the Federal Reserve Bank of Philadelphia.

“If you’re putting your rent payments on to a credit card, that shows you’re really at risk of eviction,” says Shamus Roller, executive director of the nonprofit National Housing Law Project. “That means you’ve run out of savings; you’ve probably run out of calls to family members to get them to loan you money.”

Yes, $600 will help.

But not much.

For 32-year-old Jo Marie Hernandez, $600 might buy a little bit of time, but what she really needs is a new job

Jo Marie Hernandez doesn’t know how she and her 4-year-old daughter will survive after her unemployment aid lapsed this weekend.

Hernandez, who lives in Olean, New York, is on the brink of losing her home in days after she lost her job as a customer service associate at a gas station in the spring. Enduring prolonged unemployment, she’s struggled to make ends meet and has nothing left in savings to keep her afloat.

I can’t even imagine the emotional pain that she must be going through right now.

When you have a young child and you are about to be thrown out into the streets, nothing else really matters

“I only have $100 left to my name. My whole world is shattered,” says Hernandez, 32, who was forced to put her car up for sale. “We can’t wait a few weeks for help. We’re starving and will be out on the street soon.”

Sadly, there are millions and millions of other Americans that are facing similar scenarios right now.

This is what an economic depression looks like, and economic conditions are going to continue to deteriorate moving forward.

Many on the left are assuming that future stimulus checks will be bigger once Joe Biden gets into the White House.  But every additional dollar that we borrow makes our long-term problems even worse.

Our national debt continues to spiral wildly out of control, the money supply is shooting up at an exponential rate, and we are mired in the worst economic downturn since the Great Depression of the 1930s despite unprecedented government intervention.

This is the big meltdown that everyone has been waiting for, and we are still only in the very early chapters.

So no, $600 stimulus payments won’t actually fix anything.

But hopefully they will ease the suffering slightly as the U.S. economy continues to relentlessly steamroll toward oblivion.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.