Category: Great Reset

Losses Galore

Gradually Then Suddenly Great Reset It's Probably Nothing 13 Comments

A seldom mentioned phenomenon in these days of monetary madness is the ongoing spectacle of central banks actually losing money. Not a small amount of money either. More like $11 billion per month for the US Federal Reserve alone. But I’m sure that’s nothing to worry about.

Before 2022, the Fed remitted $5 billion to $10 billion per month to the US Treasury; between 2011 and 2021, the Fed’s remittances totaled over $920 billion. Since then, the Fed has run a monthly operating loss between $5 billion and $11 billion per month, and is thus unable to remit any funds to the Treasury. These accumulating Fed losses are classified as a “deferred asset,” a negative liability whose value is the cumulative amount of the earnings shortfall.

Thanks For The Mammaries

Gradually Then Suddenly Great Reset It's Probably Nothing 19 Comments

Yet another sign that the marginal consumer is clearly tapped out and no longer able to spend freely to sustain gimmicky marketing.

Hooters — which has about 300 locations nationwide — has faced increasing financial strain as traffic declines at its kitschy restaurants, leading to the closure of several outposts.

The Atlanta-based company has been working alongside turnaround consultants from Accordion Partners to address its financial difficulties, particularly its debt burden.

Lets Be Like Norway

Climate Cult Great Reset 2 Comments

The Telegraph- Blackout Britain threat rises on collapse of Norwegian government

The Norwegian government collapsed this week following a row over EU green energy laws. A junior coalition partner in the government quit in protest at plans to implement the policies, amid a broader rise in energy nationalism in the country. Experts said the collapse raised questions over Britain’s reliance on Norwegian energy imports to keep the lights on. Last weekend, Norway accounted for 4pc of the UK’s power, coming via cables that run under the North Sea.

The Telegraph- Norway is a cautionary tale: our worst net-zero fears are being realised

Norway’s government, whose coalition ended this week, is not the first to collapse over bad energy policies linked to mad climate politics. That title incontestably goes to Northern Ireland in 2017, where poor implementation of the UK’s renewable heat scheme led to widespread suspected fraud (heating empty sheds to claim subsidies) and the end of the power sharing agreement between Sinn Fein and the DUP. It may, however, be even more consequential for the UK.

47: Suit Up!

47 Great Reset 15 Comments

Brains are splattering up and down the walls at the WEF.

Including this slap at the CEO of Bank Of America, to his face.

Let Cooler Heads Prevail

Gradually Then Suddenly Great Reset It's Probably Nothing nannystate 19 Comments

Before Canada gets caught up in an unwinnable race to implement self-imposed sanctions in response to the implementation of self-imposed sanctions by the United States, Terrance Corcoran has an alternative strategy.

Ottawa is reportedly gearing up tariff strategies, including one that would apply to every U.S. product Canada imports, from Florida orange juice to Pittsburgh steel.

All of which is a perversion of the economic principles of free trade, made even more perverse by the fact that these protectionist tariff plans mean that Canada would be adopting Trump’s economically irrational scheme to impose tariffs that would drive up U.S. consumer prices and raise costs for U.S. industry — all in the absurd belief that because Canada exports more to the U.S. than it imports there is a trade “imbalance” that needs to be fixed.

Up Or Down?

Gradually Then Suddenly Great Reset It's Probably Nothing nannystate 8 Comments

A frequent topic for discussion these days is the direction of interest rates. It’s not surprising, given that the rate of interest is pretty much central to determining where the economy is headed. In a recent Substack post, I offer my own thoughts on where things are headed. In a nutshell, it’s not looking good, given the inescapable nature of our fiat currency system.

…irredeemable fiat currencies have no means of extinguishing debt. Past bonds can only be “rolled” by issuing new bonds which must at least be sufficient to at least cover the interest and principal of the previous bond. However, the new bond carries an interest charge on its own. The burden of past debt is simply shifted to newer IOUs. Because no final payment, in aggregate, is ever possible, interest and principal can only compound and grow exponentially. The process can be slowed down, but it cannot be stopped or reversed.

This creates what can be termed a “doom loop” of rising debt. The typical retort is that borrowers can always “inflate” their way out of that debt by progressively gutting the value of the fiat currency in question. In reality, this reduction of value offers no escape. While each unit of currency might command less value, the fact that they originate as part of a perpetual bond ensures that you owe exponentially more of them.

Housing Bust

Gradually Then Suddenly Great Reset It's Probably Nothing 8 Comments

As Ron Butler informs us in a recent commentary on X, the Toronto condominium market is looking a little shaky these days.

Here are the highlights:

Call yesterday about a $920K Pre-Con Condo purchase…

20% deposit & the Buyers instinct is to walk away. Value of that $920K purchase today at BEST $800K at worst $725K but FALLING…

What they really wanted was to walk away from the Pre-Con Purchase because even if they went ahead & closed on the unit they estimate they would lose $1500 month on what rent they could get versus their monthly costs…

The Developer would sue & would win & also win “Costs”. These Buyers would pay a chunk of the Developer’s legal fees…

These are calls happening all over the GTA daily….

Unroll here.

Vibecession? What Vibecession?

Great Moments In Socialism Great Reset It's Probably Nothing 9 Comments

Unless you regard net worth as equivalent to income, you’re probably questioning this headline a bit. Not to worry, though. When the Bank of Canada is done slashing rates all the way back to zero, asset and real estate prices can get on an even steeper trajectory.

Canadians’ collective household wealth climbed to $17.3 trillion in the third quarter, marking the seventh increase in the last eight quarters — a period during which household net worth ballooned by nearly $1.9 trillion, according to Statistics Canada.

The most recent RBC housing affordability report indicated the typical family would have to devote about 60 per cent of their pre-tax income to afford homeownership today, compared with the 44 per cent quarterly average recorded in 2019.

 

The Great Toronto Condo Crash

Gradually Then Suddenly Great Reset 21 Comments

Toronto [Pre-Construction] Condos became wildly miss priced 6 years ago

And no one cared

People just kept on buying with a ridiculously false belief rents would increase massively & mortgage rates would be 2.49% forever

Buyers would snap up Pre-Con Condos at $1250 per sqft when Re-Sale Condos across the street were offered at $825 per sqft

WTF? It made no sense

It did not. And now the sense is remaking.

Circling The Drain

Gradually Then Suddenly Great Reset It's Probably Nothing 24 Comments

More evidence that the marginal consumer is tapped out. Combine that with ruinously expensive EV mandates and you’ve got a perfect storm that can take down a longstanding auto manufacturer.

A new report suggests that the automaker’s days are numbered. In an interview with the Financial Times, two unnamed Nissan executives said the company has “12 to 14 months to survive.” “This is going to be tough. And in the end, we need Japan and the US to be generating cash,” they said.

Slow sales in the US and Japan prompted Nissan to cut more than 9,000 jobs earlier this month, while simultaneously slashing production by nearly 20 percent. Nissan’s operating profit dropped 85 percent in the third quarter, with the company earning a net loss of ¥9.3 billion ($60.1 million at today’s exchange rate).

Indiana AG Opens “Human Labor Trafficking” Probe At Tyson

CreepyJoeBiden Democrats Great Reset 14 Comments

Zerohedge;

One week after our viral “Dear Border Czar: This Nonprofit Boasts A List Of 400 Companies That Employ Migrants” note revealed the Tent Partnership for Refugees, an open border aligned nonprofit, funded by a Turkish billionaire who was a mega supporter of Kamala Harris, funneled migrants into factories via a complex network of settlement agencies, staffing agencies, and other nonprofits…

… Indiana Attorney General Todd Rokita released a statement Wednseday, indicating his office has sent a civil investigative demand (CID) to Tyson Foods’ meat factory in Logansport, Indiana, seeking information about human labor trafficking.[…]

What’s very clear is that migrants did not aimlessly walk across Biden-Harris’ wide-open southern border and then find instant job placements that displaced and replaced blue-collar native-born workers. There is a massive NGO network, internationally and domestically, that channels unvetted migrants from foreign lands into US factories.

Related: HHS Secretary Xavier Becerra cannot answer why he placed unaccompanied children with sponsors whose address was a strip club.

Off Target

Gradually Then Suddenly Great Reset It's Probably Nothing 11 Comments

Target obviously didn’t get the memo: the marginal consumer is tapped out.

Target severely missed earnings expectations on Wednesday, spooking investors who are now sending the retailer’s stock price toward its worst daily drop in over two years and its third-worst day in the stock market ever.

The company’s share price tanked 21% on Wednesday morning after it reported a sales decline, lower profit, and a stockpile of unsold inventory.

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