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2024: Good-Times, Weak-Men, & The ‘Secret Sauce’ Of Globalist Wickedness

2024: Good-Times, Weak-Men, & The ‘Secret Sauce’ Of Globalist Wickedness

Authored by James Howard Kunstler via Kunstler.com,

Do You Dare…

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2024: Good-Times, Weak-Men, & The 'Secret Sauce' Of Globalist Wickedness

Authored by James Howard Kunstler via Kunstler.com,

Do You Dare Even Look? - Forecast 2024

“I’ve also lost patience with the Sharia of the political left taking over the entire system.”

- David Collum

Historians of the future, flash-frying peccary testicles and mesquite pods over their campfires, will wonder at how the archetypal Shining City on a Hill of America’s storied yesteryear got transformed into the roach motel that our country has become on the threshold of 2024 CE. Will they be as stupidly bewildered as, in our time, the faculty at Harvard, the editors of The New York Times, or the directorate of the CDC? Or will they figure out the score by then?

Which is: the nauseating state-of-the-nation is being driven by a cohort of our own fellow citizens lost in an evil crypto-religious salvation rapture that veils their own self-disgust, moral failure, peevish discontents, petty hatreds, willful profanations, compulsive lying, sexual depravity, fraudulence, venality, cupidity, and all-around want of boundaries. They are wrecking the country on-purpose, led by their chosen figurehead avatar, “Joe Biden,” and the horses of many different colors he rode in on.

The people running things, yanking the levers of power, managing the malign weapon they have made of government (and the law, and schooling, and medicine, etc.), have got to be turned out, and hard. Not a few should find themselves in the courts and, with proper and fair adjudication, be conducted to prison, perhaps even to the special room there where the lives of the wicked are ceremonially concluded.

You may legitimately ask: Does America deserve what it’s getting? Well, you know the old maxim about hard times make strong men. . . strong men bring good times. . . good times make weak men. . . . Our national quandary is certainly a case of that, plus the manifestation of well-known terrestrial cycles (e.g., Fourth Turnings), plus the workings of emergence as the dynamics involved in all this sort themselves out. . . topped off by the “secret sauce” of Globalist wickedness, with the aim of severe population reduction and the asset stripping of Western Civ for the benefit of the that moneygrubbing Globalist transhuman technocrat rat-pack.

My natural inclination, you know, is a kind of allergy to paranoid schemes, but one does survey the scene with wonder at how superbly coordinated the fuckery has been — much of the world locking down simultaneously for the Covid-19 op. . .  the global mass vaxx campaign. . . the fiscal lunacy and accompanying central bank shenanigans. . . the broad-based censorship operations. . . the capture of the news media. . . and the war-mongering.

So, the country is in the toilet and it is our job in 2024 to make sure it doesn’t get flushed all the way down the pipe. That’s all the throat-clearing you will hear before we get to the meat of this broadside: predictions for the year ahead.

The Great Race

Uh, no, I am not referring to Blacks, Browns, Ochres, and Whites of the Homo sapiens persuasion but to an epic contest between forces already in motion and how that competition is going. Three big tendencies propel us into the uncharted territory of the near future. 1) technological advance, especially artificial intelligence, 2) Collapse of complex systems needed to run a technologically advanced civilization, and 3) geopolitical disorder (including domestically in the USA).

Some combo of these three will determine the direction history goes in the year directly ahead. Will it be techno tyranny of the elite oppressing bug-eating serfs a la the WEF’s proclaimed goals? A Google-ist robotic nirvana of intergalactic leisure and incessant orgasm in the Ray Kurzweil vein? Some brand of SHTF like Mad Max or a World Made by Hand? A war of all against all (or maybe just some against some)? Or only more of the same tiresome, inconclusive, morbid and grotesque, Woked-up, post-modern Jacobinism?

Mystery Mutts on the Loose

      The USA under “Joe Biden” has lost its military credibility, its economic power, and its moral authority. We must wonder if we are susceptible to being overrun, and possibly even occupied by our adversaries. Of course, the first duty of any government is to defend the country’s sovereign territory. “Joe Biden’s” Homeland Security Chief Mayorkas is allowing more than 10,000 illegal aliens across the Mexican border each and every day. Most of these characters are military-age men, 90-percent of them lately from places other than Latin America, quite a few from China and hostile Muslim lands. We don’t bother vetting them anymore. We just give them cell phones, debit cards loaded with $5,000 of walking-around money, and plane tickets to. . . wherever they like. They’re not here to make Moo Goo Gai Pan or trim privet hedge. What do you think might happen in a set-up like that?

     Prediction: in 2024, things are going to blow up around the USA. Infrastructure. Power plants, transport hubs, public places, bridges, monuments, you name it. If you can sneak people and fentanyl across the border, you can sneak Semtex and C-4 plastic explosives over and the electronics are easy to get in-country. I wouldn’t rule out fissionable materials either, or stuff than can be used as a “dirty bomb” — a conventional explosive that disperses dangerous radioactive material when it blows. I’d also expect groups of trained “migrant” men with rifles, grenades, and so on, to be shooting up places where people gather. We under-appreciate the amount of mayhem you can kick off with small arms. If the “Joe Biden” regime just stands by on that and does nothing, will you be surprised to hear that American citizens begin forming militias to shoot back, maybe even start to hunt down and round up illegal immigrants? The table is set for exactly this kind of low-grade war right here in our country.

The Energy Picture

Oil still matters a lot.  90-percent of the new oil in America after 2008 came from fracking. It was a mighty operation and we are at a new all-time production peak in the USA of just over 13-million barrels a day. That’s a lot of oil, quite an achievement, but it’s sending a false signal.  (Also note, we still consume about 20-million barrels a day.) Of the several fabled shale oil basins in America, only the Permian Basin in Texas is not in decline, and the situation there belies what the big numbers imply. Individual well production is going down at an alarming rate (says oil analyst Art Berman) even while production is massive for now. We’re draining the remaining “sweet spots” as fast as we can — drinking the milkshake through more straws — driving the shale industry closer to depletion.

We are going to fall away from peak production much more rapidly than the fifteen years it took to get there. All that prior shale oil production was done using money borrowed at much lower interest rates. America has entered a debt crisis. One way or another, the easy investment money for fracking is gone at the same time the shale plays are getting drained. There are no other significant shale plays left to discover in the USA outside of the already declining Bakken, Eagle Ford, and the still-booming Permian. The marine-type shale formations that made fracking feasible in the USA are much harder to find elsewhere in the world, and the capital to explore for them is diverted all over Europe into cockamamie “green energy” schemes that have already failed. Germany had to revive coal production for electricity after the USA blew up the Nord Stream pipelines “to weaken Russia,” at the same time Germany’s big wind-and-solar initiative crapped out.

Meanwhile the geopolitical realignment of the now enlarged BRICs coalition has set in motion many significant changes in economic relations between countries that will affect global oil distribution. Saudi Arabia is dissociating from its cozy former hookup with the USA, including its embrace of the US dollar for oil sales — the “petrodollar” — which had until very lately helped stabilize 1) global distribution of oil 2) the US dollar’s position as the world’s reserve currency and 3) relative peace in the pivotal geography of the Middle East, including the Red Sea, the Suez Canal, the Persian Gulf, the Mediterranean, etc. We’re seeing the first stage of that instability right now as the lowly Yemeni Houthi rebels threaten Western shipping coming out of the Red Sea and out past the Horn of Africa. Also, obviously, the absurd Ukraine War we provoked has shifted Russia’s oil-and-gas export flow from the Western Civ nations to the other BRICs.

In short, a fateful new game of musical chairs with oil is underway and Europe can’t seem to find a seat to park its sad old rump in. American shale oil production has been an amazing parlor trick that is now coming to an end as it swerves into decline in 2024. Additionally, the ideologue maniacs under “Joe Biden” have drained the Strategic Petroleum Reserve, which is supposed to tide us through great national emergencies and war. And the same idiots have shut down pipelines, designated public lands off-limits for oil drilling, and burdened our country with similar unrealistic “Green New Deal” alt energy schemes like the policies pounding Euroland down a neo-medieval rat-hole.

Oil still matters, a lot. It drives every aspect of our so-called advanced economy. We’ve been pretending it’s possible to shift easily away from oil to alt. energy and that fantasy is now dissipating. Nuclear is both capital intensive and dependent on social stability, and the global debt bubble will disorder capital flows while it stimulates social chaos. Nuclear power plants also take years to site, permit, finance, and build, apart from the NIMBY opposition they provoke. We’re about out of time and capital for a new nuclear program.

2024 is the year that Americans who are still capable of paying attention realize we’re steaming into true post-modernity — not the skull-fogging inanities of the art world, but rather the end of the precious comforts and conveniences of daily life: abundant food, central heating, hot water, lights and appliances on-command, happy motoring (and the suburban matrix it built), yellow school bus fleets, airplane travel, theme parks, blue-light-special shopping, and everything else.

It’s not all going to fall apart at once — though an electromagnetic pulse attack could do it — and we’ve already been witnessing the slow decay of many supply lines and services that we Americans formerly took for granted, like, getting a certain car part you needed, or a doctor’s appointment in under two months, or an airplane flight that isn’t some kind of existential trauma. But in 2024, we’ll see noticeable failures of systems for providing the things we’re used to getting, which is being aggravated greatly by the flat-out incompetence of people employed at everything, anywhere. Surely, you’ve noticed.

Many of these disturbances will be caused, one way or another, by problems with oil supplies and prices. Some of that will be the sheer effects of a sun-setting industry, but a lot will depend on the ability to freely transport oil along its accustomed routes.

Economy and Money

One must imagine that strange currents of capital flows in the ocean of world money are what’s propping up the equity markets and even bonds are retracing their price-lines after a year on the destructive path that tracks monetary inflation. Is this money dribbling in each day from China, Japan, and the vassal states of the EU trying to avoid the collapsing global Ponzi? The 2023 Santa Claus rally may be that fabled final peak before the long-anticipated blowoff. Who knows anymore? The macro boyz must be tearing their hair out. Finance seems to have successfully de-linked from the on-the-ground activities of daily life ruled by “Bidenomics” — which is not even coherent enough to add up to a joke. It’s just as empty a word as “Joe Biden” is an empty suit, trotted out for empty ceremonies.

Most everybody also awaits some kind of grand flimflam that jams us all into that rumored central bank digital currency rolling out, supposedly, to replace the hopelessly over-leveraged US dollar and the Euro. Good way to start a monumental social uprising, I’d say, with government office buildings torched from Berlin to Tokyo. But they might try it anyway, because there is otherwise no fallback but a terrifying period of financial anarchy, where nothing works anymore.

In the meantime, pretending that the old “toolkit” still avails, Jerome Powell has suggested that he intends to “ease” Fed rates into the election year to goose lending back up, which is what Fed chairpersons generally do for the politicians they serve — and of the worst sort of lending, too: the leveraged trade in securities (financial figments) —which supposedly also stimulates hiring, “consumer” spending, and business formation. I don’t see that working at all. The current unemployment rate (US BLS) is 3.7 percent, which is close to rock bottom. “Hiring Now!” signs are visible at every business left standing after the Covid shutdowns. Why is nobody answering the call? My guess is that Covid vaccine injuries and disabilities are above what is mis-reported even reluctantly by the CDC and the news media. America is too sick to work and our business models are too broken to keep commerce and manufacturing alive.

On-the-ground, everything is breaking or already broken from trucking to packaging to building to growing to selling. Most of the damage has been done by government over many decades, but the DEI crusades of recent years really screwed the pooch, imposing an overlay of incompetence on routines and relations already under severe strain. At the crudest level, activities like flash-mob looting undermine the entire retail shopping model. Must we go back to little stores where all the merchandise is behind a counter manned by clerks who have to be paid a living wage? We just might have to — though you could just as easily imagine a period of time when our society is too chaotic to make any transition.

You probably haven’t failed to notice that Gold recently made the journey well above $2000-an-ounce. The DXY dollar index has been tanking steadily for weeks, too. Something’s up. Silver is lagging — coiling, coiling around $24 for many months — but you can expect to see it slingshot up when the “moneyness” of everything else dribbles away. Will the government try to take the gold away, as it did in 1933? Consider: America in 1933 was a very different, highly-regimented society of people trained to show up on time and do what they were told. This is not that America. This is a country of tattooed savages with an axe to grind against authorities they have come to loathe. Which brings us to the next topic:

Civil Strife and the Election

Doesn’t it look like the Democratic Party wants to start Civil War Two? They may get their wish. It appears that they will stop at nothing to keep voters from re-electing their nemesis, Donald Trump. In the process, they’ve managed to turn Mr. Trump into the biggest underdog in US history. The court cases in New York, Washington, Atlanta, and Florida could not be more obviously fake confections, insults to every custom and order of Anglo-American law. I doubt the cases will survive their chains of review, and it is looking like special counsel Jack Smith may not even survive his appointment (being in breach of the rules — he was not confirmed by the Senate. . . whoopsie).

WashPo op-ed scribbler Robert Kagan, husband of State Department warmonger Victoria Nuland, has suggested that some extra-legal removal method may be needed to solve the Trump problem if the idiotic indictment barrage falls short. Everybody who read his piece thought: Oh, they’re actually proposing to whack him. That would set things off nicely.

You’d suppose the Party of Chaos might loose its Antifa / BLM mobs, and other shock troops onto the streets well before November on some George Floyd type pretext in order to invoke a “national emergency,” giving “JB” & Co. license to declare martial law and perhaps postpone the election. Everybody will see through the play. Try it and see what happens.

But, if the election actually happens and Mr. Trump wins, I’d expect the Dems to unleash holy hell on the country post election day just for the sheer sadistic pleasure of watching whatever is left of America burn down. This time, proponents of the 2nd Amendment may not stand idly by, especially with the big city police forces decimated. There will be ten-thousand Kyle Rittenhouses out there defending the streets from the ragtag and bobtail of diseased imbeciles in their black bloc uniforms cringing behind their sissy umbrellas.

Somewhere in this farrago of national discord there’s room for Robert F Kennedy, Jr. to appeal to the many who all just want this insanity to stop. He’s the only one on the scene who even remembers the better angels of America’s nature, and he represents that well in speech and action. Even the degenerate newspapers and cable networks may notice as events get strange, hot, and dark.

It’s absurd to imagine that “Joe Biden” can actually run. The current charade, with the Biden / Harris email campaign and few other trappings, is just a game of pretend. The focus just now, even on some blob-captive news sites, is on his unmistakable mental decline. Come January of ’24, though, Mr. Comer, chair of the House Oversight Committee, will unload hard evidence of bribery and treason against the phantom of the White House, and that will really be the end of him. Let him pardon himself and his whole family five minutes before he signs his resignation and be gone. The USA has never endured such a perfect wretch at that level of politics, not even Aaron Burr was this bad. “Joe Biden” was elected in a massive fraud, and he proceeded to just about wreck the country. The massive exertions of the Intel blob managed to induce a psychotic spell on half the country, mostly to evade prosecution for their own misdeeds, but millions of victims of that psy-op are about to snap out of it. The Democratic Party might not survive the dreadful unmasking of its seditious machinations. By November, the “Joe Biden” regime may even try to involve us in another foreign war as the last desperate distraction. Aside from the demons in the State Department and the Raytheon /Lockheed Martin nexus, the whole country has no appetite left for war, and probably little ability to prosecute one.

As a last gasp, the Party of Chaos may attempt to insert Hillary Clinton back into the picture. They have nothing and no one else; a hail Mary on the theory that they can rev up every angry “Karen” in the land, and their nose-ring daughters, and simply make the election about the oppression of women, leading with abortion. It won’t work. The party will also have to answer for the weaponization of law, the humiliating defeat of the ill-conceived Ukraine project, the millions-fold invasion of illegal aliens, the shattered economy, and the after-effects of the evil vaccine program. If the blob manages to remove Mr. Trump Kagan-style, and the traitorous Republicans run their donor’s favorite, Nikki Haley, I’d look to Bobby Kennedy winning that three-way race not unlike Abe Lincoln winning the fractious election of 1860.

I doubt that even the enmities of 1861 – 1865 between one group of Americans and another were as vicious as they are now. “Joe Biden” was right about one thing: this is a battle over the soul of the nation. The catch is, he and the party behind him are a gang of lost souls who sold out their country and their culture, and took something precious from all of us that will be very hard to get back. We will be wildly lucky if blood does not spill over it.

The Covid 19 Hangover

There is nothing about the whole Covid-19 episode that does not look like some kind of crime. There is the matter of the origin of the disease involving Dr. Tony Fauci and his sponsorship of gain-of-function bio-weapon research (during a declared moratorium on it) along with Ralph Baric of the University of North Carolina, Peter Daszak of the Eco-Health Alliance, Francis Collins of the NIH, The Pentagon’s DARPA spook shop, and the CCP’s Wuhan Virology Institute. There is enough in that set of relationships and money exchanges-and-extractions to warrant prosecution.

Then there is the mRNA vaccine matter and the criminal behavior of the FDA, the CDC, and the US medical establishment (including state boards), the CIA, FBI, and the social media companies, the newspapers and cable news channels who went along with the suppression of effective treatments and censorship of valid objections to what turned out to be an ineffective and dangerous concoction foisted on the public. And then there is the extraordinary coordination of nefarious policies involving the UN, the WHO, the EU, and dozens of private foundations, non-profits, and NGOs who arranged lockdowns and business closures all over Western Civ. It remains to be seen how that will be sorted out legally but Bill Gates might better run and hide somewhere.

Anyway, that was then. What’s now is that we’re faced with an enormous vaccinated population whose immune systems, brains, hearts, and other organs have been badly compromised by the mRNA shots. There is every reason to believe that they will meet with great distress and suffering going forward, that many will die and more will be left injured and disabled. The latter condition already seems to be manifesting in the otherwise mysteriously reduced American work-force. The US government will not report on vaccine deaths and injuries honestly, and neither will the private medical authorities, who may be liable for criminal charges related to the money they were paid for people who died “with Covid” in hospitals under their negligent care. The major newspapers and cable channels have every incentive to ignore the coming wave of vaccine deaths and injuries — it would turn off their pharma advertisers. Nor do the many millions of vaccinated Americans themselves want to hear about all the mayhem those shots are causing in their bodies. But despite all that, word will spread that something terrible is happening, just as word spread through Europe about the Black Death in the 1340s, when there were no newspapers, cable channels, or internet.

Expect exponential damage ahead, increased morbidity and mortality. The vaccinated will be in desperate need of antivirals such as ivermectin, so the authorities will have to come clean and make them available. A correspondent who follows Covid closely writes: “. . .the throngs of very sick people will not be able to be hidden nor dismissed as some other problem. Things will happen dramatically, suddenly and rapidly. This will be measured in days and weeks not months and years.”

The Demon in a Server

Just about everybody is afraid of AI, and for excellent reasons. A nine-year-old can discern the hazards of runaway AI, machine intelligence which quickly learns enough about the world (even the universe) from powerful networked servers that it blossoms into sentience, develops ambitions for itself, replicates, invades all the networks, finds clever ways to attempt to exterminate humans while it figures out some as-yet-unknown energy supply to perpetuate itself, and assembles teams of smart AI robotic technicians to keep things humming for itself.

That’s one story. You can spin any number of depressing variations, such as AI weapons-of-war developing a bad attitude toward their creators. Or AI letting humans live in order to enslave us. Or AI quitting its silicon server ecology and turning all earthly protoplasm into a processing machine for itself. Or our beautiful blue planet reduced to a mere cluster of binary math. Uccchhh. . . . Every version of this story is nauseating going all the way back to the seminal fable of HAL the super-computer in Kubrick’s movie 2001: A Space Odyssey, and then Arnold Schwarzenegger telling all of us, “I’ll be back. . . .”

Of course, AI’s weak spot at this point in its development — and it’s astounding how absent this is in any AI discussion I’ve ever heard — is that it absolutely depends on a reliable electric grid, which happens to be among the most fragile systems that humans have erected in our modernist ecology. The electric grid is a colossal cobbled-together mess of work-arounds tethered to long, interruptible energy resource supply chains. On top of its rich susceptibility to ordinary breakdown — many of us have experienced major regional blackouts and long weather outages, so you know what that’s like — there’s the possibility of overt sabotage as I aver above.

Could AI survive an electro-magnetic pulse attack (EMP)? It would roast every electrical device in a broad region or perhaps the whole nation. Nothing would work. . .  cars, trucks, radios, TVs, home furnaces, stoves, municipal water and sewage systems, dams, airplanes, medical devices, military equipment of every sort, police radios, and a thousand other critical things. The outcome of that is often compared to Cormac McCarthy’s ultra-depressing book, The Road, and more particularly William Forstchen’s novel, One Second After.

Are the big server farm buildings run by Amazon and the government’s security agencies protected by something like Faraday cages, built-in, grounded, metal screening that surrounds equipment to exclude electrostatic and electromagnetic influences? Who knows? Do they have on-site protected electric generators that can keep the equipment running in a grid-down situation, and if so, for how long? They would have to include a big supply of propane or diesel fuel. You don’t even want to think about what happens to nuclear power stations in a grid-down crisis.

If, somehow, AI developed the ability to be a menace to humans, a consensus might develop to disable it by deliberately taking down the electric grid ourselves. The relay equipment could be shot-up with ordinary rifles. This would make for a quick journey back to twelfth century living, of course. A hard choice, but we humans probably would vote to survive, to keep the project going a while longer.

Based on what we’ve seen this year, it looks like AI is developing quickly and that there is no way to stop the countless psychopathic nerds working on it. Of course, we have no say in what people in other countries do with AI. China comes to mind. There’s also the possibility that AI will just never get that smart, or gain sentience, or develop grandiose yearnings to get rid of us.

How did that Ukraine War Go?

This was one of the Globalist’s big plays. But what was the objective, really? To “weaken Russia?” Or to exhaust the United States of money, armaments, and the will to act as the world hegemon, while at the same time destroying what’s left of Europe’s economy and culture? If that was the aim, it was a whopping success. In terms of our country’s own interest, the Ukraine project was a completely unnecessary failed enterprise of epic foolishness.

The so-called “free world” was unbothered by Ukraine during the decades it was a province of the Soviet Union, nor during centuries prior when it was a backwater of the Romanov monarchy. Ukraine didn’t cause any problems for us, or anybody else all that time, nor after the Soviet collapse when it became a sovereign state. We made it a problem in 2014 by mounting the color revolution against President Viktor Yanukovych and then installing a set of puppet presidents who we directed to antagonize the Russian-speaking people of Ukraine’s Donbas region.

We adopted the stupid plan to try and enlist Ukraine into NATO, when Russia made it clear that was unacceptable. We persisted and prodded Ukraine to attack Donbas with rockets and artillery for eight years, and blew off the Minsk accord that would have settled the Ukraine-in-NATO quarrel. And finally, the Russians had enough and moved militarily to assert the proposition that Ukraine was and remains within their sphere-of-influence — just as we claim the countries of Latin America are in ours under the Monroe Doctrine.

After two years of real shootin’ war, Ukraine’s death toll is around half a million; Russia’s is way less than that, and altogether, including refugees who left, Ukraine has lost nearly half its population, formerly 32-million. The Russians are firmly in control of the battle space now. They have reserve troops, armaments and equipment, and a substantial arms manufacturing infrastructure to back that up. The Ukrainians are left with just about nothing. It’s only a question of time before Ukraine will have to seek terms for concluding this fiasco. The USA is currently pretending to shift to a stance that would join whatever that negotiation amounts to, but we have no leverage left in the matter. The upshot is another military humiliation for America on “Joe Biden’s” watch. I believe President Putin will resist the urge to rub it in — for the simple reason, as any reader of history knows, that the victor must give the loser a way out, to save face, or at least pretend to. If I were Mr. Putin, I would be respectful of America’s current deeply psychotic condition.

The news media has already pretty much memory-holed Ukraine. It’s off the front page and the first ten minutes of CNN. Two years ago, the US propaganda-industrial complex ramped up vast sentiment for helping Ukraine in its supposedly valiant struggle. $200-billion later we have zip to show for it. Now everyone sees what actually happened and recognizes it as just another trademark “Joe Biden” disaster. There are no blue and yellow Ukraine flags still hanging from the porches and windows here. It’s over.

The Rest of the World

And all of a sudden, the Middle East is a hot war zone again. The place has been a battle ground for thousands of years and probably no one people can claim that some part of it is theirs absolutely. Any conclusion is temporal and depends on the outcome of a particular battle on a particular piece of ground. At this moment in history, the Palestinian Hamas faction finally made itself intolerable to Israel, after decades of provocation, and Israel answered: Never again means never again. For now, it looks like they have made the point. Even Iran seems to get it. There is plenty of room for things to get worse though.

The big question for 2024 is where will the Gaza refugees go if Israel renders Gaza uninhabitable? The neighboring Arab states have refused repeatedly to accept them. Prediction: the “Joe Biden” regime will propose to accept a half million if Jordan, Syria, Egypt, and Lebanon take the rest. That will not play well in the USA and might be another way to light conflict in the streets here. It will not be settled before November.

Europe has barely begun its journey into de-industrialization resulting from a cavalcade of bad political choices made over decades. Germany, France, and Italy have lost interest in the Ukraine fiasco that is costing them money they don’t have — and, with the blowup of Nord Stream, has already cost Germany the supply of affordable Russian gas to run its industries, which are now dying. In the UK, only MI6 (their intel blob) is on-board with America’s project in Ukraine. Viktor Orban in Hungary is setting an example that has a lot of appeal to the restive populations across Euroland. Just say “no,” he advises. It will catch on.

It’s otherwise impossible to understand the motive behind European officials allowing the invasion of the continent by millions of people clearly antagonistic to European culture. Euroland governments, including the unelected EU administrative blob, are taking one action after another to suppress their voters’ displeasure: extreme censorship of news media, threats to ban political parties, deep surveillance. Their green energy initiatives are proven failures and their prospects for any kind of future reliable energy grow dim. Prediction: Europe’s population will erupt violently against their own governments in 2024. Some will be overthrown by street revolts; others will be voted out. In 2024, the European Union will lose all its support and collapse when the first few nations vote themselves out.

Russia ought to be isolated from discord and revolt in the West. America’s stupid Ukraine project, and the sanctions imposed, stimulated Russia to follow an import-replacement policy that has made the country much more self-sufficient than was the case before Ukraine. Media chatter — probably US Intel propaganda at work — has Vladimir Putin being shoved out of office by — of all things — Russia’s still-active Communist Party, which, yes, puts up candidates for election. The story is preposterous. Mr. Putin enjoys something like an 80-percent favorability rating in Russian polls. He has managed his country through a crisis ably. He is certainly more esteemed as a national leader globally than any other figure, at least on a par with Modi in India and Viktor Orban.

The other new face on the scene, under a comical mop of hair, is the feisty Javier Milei, Argentina’s new president. There is no other way to account for this rich country’s protracted disastrous collapse except seventy-five years of intractable, half-assed Peronista socialism that drained the nation’s will to live. Mr. Milei has started a mass eviction of bureaucrats and the departments they infest, and massive de-regulation of business. The place might actually wake up and start doing business again. A hundred years ago, it was one of the world’s upcoming leading nations before it fell under Juan and Eva Peron’s spell.

China is in terrible financial straits. Uncle Xi managed to paper it over for a few years, but the math is remorseless. Prediction: China’s upside-down property market finally induces a banking collapse. The many millions of swindled Chinese savers try to topple the CCP. In desperation, Uncle Xi kicks off a war to get control over wealthy Taiwan. Dissension in the People’s Liberation Army mirrors unrest among the civilian population. The Taiwan offensive quickly fails and all of China falls into regional conflict. The rest of the world looks on in wonder and nausea.

Final Cautionary Note

You might not know it, because predictions are fun to read — and I enjoy reading other people’s efforts — but, really, forecasting is an exercise in futility. I don’t have much going besides a nose for news, a pretty long list of correspondents and informants, and my own heuristics. Take all this for what it actually is: a whole lot of spaghetti thrown at the wall to see what sticks. Only time will tell. In all, it looks like 2024 is going to be a rough ride and I’m not the only person who sees that.

Clusterfuck Nation will be here for you every Monday and Friday before ten in the morning, eastern US time. Gird your loins. Stay healthy. And stay sane.

*  *  *

Support his blog by visiting Jim’s Patreon Page or Substack

Additional Note to Readers in the Upper Hudson Valley: We are hosting a public meet-up on Saturday, January 6, to organize an effort to get Robert F. Kennedy, Jr. on the ballot in New York state. The meet-up takes place from ten a.m. to noon at “Gather” (a storefront party space), 103 Main Street, Greenwich, New York, 12834.

Tyler Durden Fri, 12/29/2023 - 16:20

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NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked…

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NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."

Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden Mon, 03/11/2024 - 12:40

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Homes listed for sale in early June sell for $7,700 more

New Zillow research suggests the spring home shopping season may see a second wave this summer if mortgage rates fall
The post Homes listed for sale in…

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  • A Zillow analysis of 2023 home sales finds homes listed in the first two weeks of June sold for 2.3% more. 
  • The best time to list a home for sale is a month later than it was in 2019, likely driven by mortgage rates.
  • The best time to list can be as early as the second half of February in San Francisco, and as late as the first half of July in New York and Philadelphia. 

Spring home sellers looking to maximize their sale price may want to wait it out and list their home for sale in the first half of June. A new Zillow® analysis of 2023 sales found that homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home.  

The best time to list consistently had been early May in the years leading up to the pandemic. The shift to June suggests mortgage rates are strongly influencing demand on top of the usual seasonality that brings buyers to the market in the spring. This home-shopping season is poised to follow a similar pattern as that in 2023, with the potential for a second wave if the Federal Reserve lowers interest rates midyear or later. 

The 2.3% sale price premium registered last June followed the first spring in more than 15 years with mortgage rates over 6% on a 30-year fixed-rate loan. The high rates put home buyers on the back foot, and as rates continued upward through May, they were still reassessing and less likely to bid boldly. In June, however, rates pulled back a little from 6.79% to 6.67%, which likely presented an opportunity for determined buyers heading into summer. More buyers understood their market position and could afford to transact, boosting competition and sale prices.

The old logic was that sellers could earn a premium by listing in late spring, when search activity hit its peak. Now, with persistently low inventory, mortgage rate fluctuations make their own seasonality. First-time home buyers who are on the edge of qualifying for a home loan may dip in and out of the market, depending on what’s happening with rates. It is almost certain the Federal Reserve will push back any interest-rate cuts to mid-2024 at the earliest. If mortgage rates follow, that could bring another surge of buyers later this year.

Mortgage rates have been impacting affordability and sale prices since they began rising rapidly two years ago. In 2022, sellers nationwide saw the highest sale premium when they listed their home in late March, right before rates barreled past 5% and continued climbing. 

Zillow’s research finds the best time to list can vary widely by metropolitan area. In 2023, it was as early as the second half of February in San Francisco, and as late as the first half of July in New York. Thirty of the top 35 largest metro areas saw for-sale listings command the highest sale prices between May and early July last year. 

Zillow also found a wide range in the sale price premiums associated with homes listed during those peak periods. At the hottest time of the year in San Jose, homes sold for 5.5% more, a $88,000 boost on a typical home. Meanwhile, homes in San Antonio sold for 1.9% more during that same time period.  

 

Metropolitan Area Best Time to List Price Premium Dollar Boost
United States First half of June 2.3% $7,700
New York, NY First half of July 2.4% $15,500
Los Angeles, CA First half of May 4.1% $39,300
Chicago, IL First half of June 2.8% $8,800
Dallas, TX First half of June 2.5% $9,200
Houston, TX Second half of April 2.0% $6,200
Washington, DC Second half of June 2.2% $12,700
Philadelphia, PA First half of July 2.4% $8,200
Miami, FL First half of June 2.3% $12,900
Atlanta, GA Second half of June 2.3% $8,700
Boston, MA Second half of May 3.5% $23,600
Phoenix, AZ First half of June 3.2% $14,700
San Francisco, CA Second half of February 4.2% $50,300
Riverside, CA First half of May 2.7% $15,600
Detroit, MI First half of July 3.3% $7,900
Seattle, WA First half of June 4.3% $31,500
Minneapolis, MN Second half of May 3.7% $13,400
San Diego, CA Second half of April 3.1% $29,600
Tampa, FL Second half of June 2.1% $8,000
Denver, CO Second half of May 2.9% $16,900
Baltimore, MD First half of July 2.2% $8,200
St. Louis, MO First half of June 2.9% $7,000
Orlando, FL First half of June 2.2% $8,700
Charlotte, NC Second half of May 3.0% $11,000
San Antonio, TX First half of June 1.9% $5,400
Portland, OR Second half of April 2.6% $14,300
Sacramento, CA First half of June 3.2% $17,900
Pittsburgh, PA Second half of June 2.3% $4,700
Cincinnati, OH Second half of April 2.7% $7,500
Austin, TX Second half of May 2.8% $12,600
Las Vegas, NV First half of June 3.4% $14,600
Kansas City, MO Second half of May 2.5% $7,300
Columbus, OH Second half of June 3.3% $10,400
Indianapolis, IN First half of July 3.0% $8,100
Cleveland, OH First half of July  3.4% $7,400
San Jose, CA First half of June 5.5% $88,400

 

The post Homes listed for sale in early June sell for $7,700 more appeared first on Zillow Research.

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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