How Inflation Breaks Our Brains
From salt riots to toilet paper runs, history shows that rising prices make consumers—and voters—grumpy and irrational.
by Eric Boehm
Reason.com
When Russian peasants set fire to hundreds of buildings in Moscow in 1648, the acute cause was a sharp rise in the price of salt. When they rioted again 12 years later, it was to protest a government policy that made copper money equal in value to coins made from silver—a policy that naturally caused widespread price inflation.
An increase in the price of bread, and an inept government response to it, helped set the French Revolution on its bloody course.
Periodic violence targeting Jews and other minority groups throughout European history has been linked to inflation and other sources of economic instability. The most infamous and horrific of those incidents, of course, began as an attempt to scapegoat Jews for the spike in inflation that plagued Germany in the wake of World War I. American history, too, is littered with panics, riots, and upheaval caused by sudden rises in prices and the public’s perception that they are being ripped off. In the early days of the American experiment, indebted Massachusetts farmers took up arms against the new federal government’s monetary policies. Two centuries later, dozens of farmers drove their tractors to the front door of the Federal Reserve in downtown D.C. to protest rising costs.
Discount Retailer Big Lots Prepares to File for Bankruptcy Amid Inflation and Declining Sales
by Amy Furr
Breitbart.com
The retailer known as Big Lots is preparing to file for bankruptcy as other companies across the United States have recently done.
Individuals with knowledge of the situation said the discount home goods store may file as early as Sunday, Bloomberg reported on Friday, noting the company is planning to sell its stores through a court-supervised process.
The article continued:
The company will continue to operate under Chapter 11 protection, the people said, and is in the process of lining up a so-called stalking horse bid, meaning it’s subject to better offers should any materialize. The company has been working with advisers from AlixPartners and Guggenheim Partners on the bankruptcy and sale process.
The Fed Has Room to Cut, Rates Are High Relative to Inflation, and Job Growth Could Use Some Juicing Up
by Wolf Richter
Wolf Street
Job growth bounces back some, hourly earnings jump, unemployment dips, but job growth is too slow to absorb the massive influx of immigrants.
Payrolls at employers rose by 142,000 jobs in August, the most since May, and a bounce-back from July, which was revised down to 89,000 new jobs (may have been affected by the bad weather across a big part of Texas due to Hurricane Beryl), and from June, which was revised down to 118,000, according to the Bureau of Labor Statistics today (blue in the chart).
The three-month average — which includes the revisions and irons out the month-to-month squiggles — declined to 116,000 jobs, dragged down by the July report, and at the very low end of the three-month averages in 2018 and 2019 (red).
Gold and the Greatest Global Monetary Destruction in History
from King World News
Here is a look at gold and the greatest global monetary destruction in history.
September 8 (King World News) – Matthew Piepenburg, partner at VON GREYERZ AG: How does one hedge against open stupidity?
Left, right or center, our policy makers – from parliaments and executive branches to central banks and think tanks – have taken the world closer to war, immigration disasters, infrastructure failures, credit traps, wealth inequality, social unrest and currency destruction than any other time in recent memory.
Like myself, many are asking, privately or publicly: How did we get to this historical economic, social and political inflection point?
Kamalanomics: More Inflation for America
by Daniel Lacalle
Mises.org
In a recent interview with CNN, Kamala Harris said that Bidenomics is working and that she is “proud of bringing inflation down.”
However, the Bureau of Labor Statistics published the latest CPI at 2.9%, despite annual inflation being 1.4% when she took office. Inflation is a disguised tax and accumulated inflation since January 2021, when the Biden-Harris administration started, has increased more than 20%.
Of course, Democrats blame inflation on the war, the pandemic, and the science-fantasy concept of “supply chain disruptions.” No one believed it, because most commodities have declined and supply tensions disappeared back to normality, but prices continued to rise.
As a result, Harris invented the concept of greedy grocery stores and evil corporations to blame for inflation and justify price controls. Is it not ironic? She blames grocery stores and corporations for inflation, but when price inflation drops, she proudly takes credit.
Three Key Trends That Will Shape the Future of America
by James Hickman
Schiff Sovereign
You wouldn’t be especially impressed by someone’s insight if they told you that the world today is full of turmoil. That’s obvious— from wars and cultural clashes to cost of living crises and a pervasive sense of negativity.
More impressive is that William Strauss and Neil Howe predicted that the 2020’s would be like this nearly three decades ago in their 1997 book, The Fourth Turning.
According to their theory, societies move through cycles approximately 80-100 years long, with each cycle divided into four distinct “turnings.” These phases mirror the seasons, with the Fourth Turning representing the harsh winter—a period of upheaval and transformation.
Strauss and Howe predicted that the next Fourth Turning would begin in the mid-2000s, ignited by a crisis that would set the stage for significant societal change.
Biden Admits ‘Inflation Reduction Act’ Was Wrongly Named: ‘We Should’ve Named It What It Was’
by Nick Gilbertson
Breitbart.com
President Joe Biden on Thursday admitted that the $700 billion Inflation Reduction Act, which did not reduce inflation and included $369 billion for green energy initiatives, was wrongly named.
Biden’s remark came at an event in Westby, Wisconsin, where he was touting his Bidenomics investments. He called the Inflation Reduction Act “the most significant climate change law ever,” adding, “by the way, it is a $369 billion bill, it’s called the–we we we should’ve named it what it was.”
The Penn Wharton Budget Model found the bill would drop inflation by .1 percent over five years, and the Congressional Budget Office’s (CBO) analysis was similar.
Central Bank Gold Buying Trends and the Federal Reserve’s Inflation Strategy
by Money Metals
GoldSeek
In the latest episode of Money Metals’ Midweek Memo, host Mike Maharrey explored two key financial topics: the surge in central bank gold purchases and the historical perspective of the Federal Reserve’s balance sheet activities, with a focus on inflation.
Central Bank Gold Purchases Surge
Maharrey discussed the most recent data released by the World Gold Council, which showed a significant increase in gold purchases by central banks. In July, global central banks added 37 tons of gold to their reserves – a staggering 206% increase from the previous month.
Bidenomics Remains an Albatross Around Kamala’s Neck, Media Steps in to Help
by Jack Hellner
American Thinker
For Joe Biden’s entire term, the media spread the lie about how great his policies and results have been, particularly when it came time to the economy—the “best” economy “ever” they said. Of course, the people trying to survive the economy knew better. Now, Democrat operatives in her campaign and in the media are advising Kamala to run away from the unpopular Biden as fast as she can to intentionally mislead the voters. They sure don’t want Kamala to tell the truth that she’s just as much to blame, and would only make things worse.
They want her to falsely portray herself as the candidate for change; here’s a new article from CNN:
Harris’ attempt to separate herself from Biden on the economy frustrates Trump
CNN: At the Throwback Brewery, Kamala Harris pivoted to the future, separating herself a little more from Bidenomics as she tries to run as a change candidate from an incumbent administration who is driving Donald Trump to distraction.
Inflation Leaves the Middle Class Too Poor to Shop at Dollar Stores
by John Carney
Breitbart.com
Inflation Chops Down Dollar Tree
Dollar Tree’s latest earnings report offers a grim reflection on the state of the American economy. What we are witnessing is not just a minor fluctuation in retail performance, but a broader indictment of an economy that, under the stewardship of Joe Biden and Kamala Harris, has manifestly lost its way.
For those unacquainted with Dollar Tree’s dual audience, its Family Dollar stores cater to lower-income households seeking everyday necessities, while its namesake brand draws in middle- and upper-income shoppers for affordable party supplies and seasonal goods. What makes this earnings report notable is the revelation that even households earning over $125,000 per year—once thought immune to such cutbacks—are now tightening their belts and shifting from “buying for want” to “buying for need.”
This is not a blip, nor should it be dismissed as a mere casualty of transient economic forces. Rather, it is the logical outcome of economic policies that have imposed inflationary burdens on all classes of Americans.