by Brandon Smith, Alt Market:
For the past several months I’ve been discussing the high probability of Donald Trump’s return to the White House. Specifically, I have warned that the Biden/Harris Administration along with the Democrats have been using data manipulation to hide the growing threat of a stagflationary collapse within the US within the next couple of years.
In my article ‘Smoke And Mirrors: What Happens After Biden’s Economic Manipulations Disappear?’ published in September, I outlined the specific tricks Biden’s team has been using to obscure the decline in the labor market, hide the true inflation problem, marginalize the exploding national debt issue and manipulate the CPI while artificially propping up GDP with government spending. In that article I noted:
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“If someone was to ask me what I predict, I would have to say Trump will be president again. From all the evidence I’ve seen the Harris campaign is an astroturf movement with a limited voter base. She’s obviously not very bright and I don’t think the theatrical “joy” strategy is convincing very many people of her competency. Her economic policies (including price controls) are full bore communist and would be devastating to any form of US recovery. Her fiscal plan will be even worse than Bidenomics has been…”
“I suspect that if Trump enters office once again there will be a multitude of changes to our economic data and they will happen quickly. Some of the rigging is already being exposed, just not on a level where the majority of the populace is aware of it…”
Now that the election outcome has been decided and Trump is the clear winner by a landslide in the electoral college and the popular vote, we should keep in mind that the real fight for the future of America starts in 2025. We should also consider the fact that the fate of the conservative ideal (and perhaps the ideals of all western civilization) are now inexorably tied to the success or failure of the Trump Administration.
Meaning, when Trump enters office again the establishment will seek to blame every negative event not just on Trump, but on ALL conservative and liberty minded principles. This is a problem because Trump is about to inherit perhaps the worst economic time bomb in American history.
I call it a “Catch-22 trap” and I predicted this dangerous outcome back in 2021. Here’s how it works…
Because of dollar overprinting and government overspending the US is now in a stagflationary death spiral. It took decades to produce this financial singularity but it is finally upon us and it will be very difficult to reverse.
When the government and the Federal Reserve were finally forced to acknowledge the stagflation crisis in 2022, the Fed had to be seen as at least trying to stop the bleeding. So, they launched interest rate hikes. The problem is, the US is also suffering from exponential national debt and each rate hike greatly increases the amount of interest the nation has to pay per year. For now, the US pays around $1 trillion in gross interest every three months. This means our national debt will skyrocket while rates are high.
But the Fed has entered a process of rate cuts, you say? Inflation is defeated, you say? The whole calamity has been conveniently solved by Joe Biden and friends right before Trump takes over, you say? No.
The problem is that the inflation threat has not been solved, it has been hidden. CPI is not a measure of cumulative inflation, it is a measure of monthly inflation diluted by tens of thousands of goods and services, most of them not necessities. For the past couple years Biden has been dumping US strategic oil reserves on the market in order to bring energy prices down and artificially reduce CPI, but this has not lowered cumulative inflation. And, as the Fed cuts rates through 2025, the inflation panic will return.
That is to say, if the Fed keeps rates high the national debt climbs to disastrous levels. If they cut rates, then inflation returns and monthly inflation will continue to accumulate. Damned if we do and damned if we don’t, and guess who gets the blame? That’s right, Trump and conservatives.
