Powered by debt

Millions have lost their jobs or had their pay slashed in the last year. Now, they'll face the full wrath of the money printer:

The invisible tax of rising inflation will do far more to harm working and middle-class Americans than Biden’s proposed tax hikes. The trillions of dollars in congressional spending and money printing from the Federal Reserve is already having a dramatic effect on the price of ordinary goods. [...]

Over the past year, food prices are up 3.5 percent, with eggs and meat up by over 5 percent; gas is up 22 percent and is expected to get even higher by this summer; lumber is up 250 percent; new home prices are up $36,000, with overall housing up 11 percent; and new cars are up 9 percent, the highest in 68 years. In April, 13 percent of new car buyers paid more than the sticker price. Other goods — from household items, baby care and general merchandise — are already up between 5.2 and 7.2 percent from this time last year. The cost of eating out shot up by 3.7 percent over the past year, and some takeout specials such as chicken wings have nearly doubled. Coffee futures are up 24 percent since October. Even growing your own food has surged in price, with the cost of seeds and potted plants jumping by 10.5 percent.

I was thinking about buying a new PC recently. The actual price of the whole build comes out to almost double the MSRP! And that's assuming all the parts are even available for purchase. As of right now, the top three 3000 series GPUs from Nvidia are sold out in Canada.

The primary driver of the current inflation comes through money printing by the Federal Reserve. The Fed nearly doubled its bond purchases since the beginning of the pandemic, pumping almost $4 trillion into the economy. This is about as much as the Fed purchased between 2008 and 2014, during the worst of the Great Recession. From February 2020 to March 2021, the total of circulating cash, mutual funds and banking deposit money supply increased from $15.473 trillion to $19,896 trillion. The Fed effectively monetizes the federal government’s debt, creating both a cover for higher deficits and increasing the money supply further. From 2019 to now, the national debt jumped from just under 80 percent of gross domestic product to over 100 percent.

We had a one-month stock market crash last year. We're due for a giant meltdown like we had in 2000 and in 2008.


Legalized theft

That's in just four months.

If you're in the middle class and you want to sell your assets in New York, then get ready to bend over and pay YOUR FAIR SHARE:

The combined state and federal capital gains tax rate in New York would rise from the current 34.7 percent to 54.3 percent under President Biden’s American Families Plan, according to a new study from the Tax Foundation.

That's a cool $100,000 extra in taxes on the sale of a half-million dollar property.


Back to work!

An overwhelming majority of Canadians don't agree with increasing immigration. A sizeable number want to decrease it. Yet, none of the Canadian political parties support this basic view. In fact, last year, when over a quarter million Canadians lost their jobs, the Liberals imported over a hundred thousand workers into Canada. Result? Depressed wages and a skyrocketing real estate market that's ripping apart families as siblings and the younger generations have to move far away to get an affordable place to live.

Oh, speaking of useless political parties and cheap labor:


The Bell Hell

Walter Schultz doesn't like leaving anything to chance. The licensed private investigator documents everything — so when he contacted Bell Mobility in February for a better deal on his service, he recorded the exchanges.

Three different customer service representatives made the same offer, which he accepted, that included 10 GB of data for $55 per month.

But Bell later told the Kitchener, Ont., man he couldn't have the deal — because it didn't exist.

I know someone who used to work at a Bell call center. Too many reps, mostly foreign students, would often make ridiculous offers to customers to get them to stay but, in reality, those deals didn't exist for current clients. Many times such offers were exclusive to new customers but they came with a time limit -- the sweet low prices would apply for six months and then skyrocket to the original, high rates. Of course, this important information wasn't shared. So, one ended up with pissed off customers six months down the line but by then the reps already had met their numbers, got their bonus, and had moved on to greener pastures.

Bell and Rogers are truly hated by a large number of Canadians because what they're doing is deceptive and illegal. Why do they keep getting away with it? A law professor explains:

He says the biggest problem for consumers is "accessing justice," because it's often too expensive to enforce consumer rights if a telco refuses to budge and the CCTS rules against the complainant.

"Already consumers always feel that they're in a weaker position, and I think they are, which is why we have legislation to protect them… but what are [they] going to do? Commence a legal action for $100? Most people will not," he said.

Stop using their services. There are plenty of reasonable and cheaper alternatives.


Can't buy a closet

When Andrés Peñaloza and his wife Maria Fernanda Gonzalez first immigrated to Canada from Venezuela more than two years ago, they dreamt of a better life, which included owning a home. But after years of looking to buy something that would be suitable for the family they hope to start in Vancouver, they’ve quit searching.

Tough years ahead for Millennials and Generation Zyklon:

With the average home price in Canada jumping 31.6 per cent year-over-year in March, Peñaloza and Gonzalez are part of a cohort of people under the age of 35 who feel that their dreams of homeownership are increasingly out of reach. These millennial prospective buyers have seen their earnings hammered by two major recessions now.

Note: that's an average. There are places in Canada where houses have nearly doubled in price in one year.

“Back when my mom started out as a young person in Canada, it took five years of full-time work to save a 20 per cent down payment on an average priced home. Today, across the country on average it now takes 14 years,” he said.

At that rate, it will take 70 years to pay off a house. Even for an average salaried couple, that's 35 years of non-stop full-time grinding work to own a house. It's simply not worth it.

Taking a step back, it's astonishing that a country the size of Canada has such a ridiculous real estate market. There is enough viable space in the country to increase the housing space by an order of magnitude. Yet, the supply is artificially limited by policy, the immigration levels are exploding thanks to the Liberals, and the job market is stagnant courtesy of Corona Chan. Most of this misery was largely avoidable.


Escape from New York

When high taxes and asinine regulations drive away entrepreneurs and revenue, the bureaucracy starts to prey on the small businesses. Of course, this only accelerates the decline. 

The Thomas Sowell bit is apt. He was a Marxist in university who quickly learned about the cold and brutal nature of the government apparatus after he worked in it.


Just a few short years later

Many Canadians are against the added option of a private system. They think that everyone should get the same miserable health care regardless of income. What they fail to see is that not-poor Canadians will simply travel abroad to get treatment. In other words those who suffer through months and years (!) of wait time for a basic appointment or surgery are largely the poor Canadians. It would be better to have a private system with extra doctors, nurses, and hospitals within Canada. Of course, that would showcase the mediocrity of the public system. So, the sad reality continues.


"Absolutely useless"

Kumar got consumed by the hype:

Ashok Kumar switched to driving an electric rickshaw taxi from working at a printing press three years ago, after hearing the New Delhi government was offering subsidies. However, he never got the promised rebate on his $1,770 electric rickshaw.

Kumar sets out each day acutely aware that he has just until lunchtime to earn as much as he can.

Then he has to rush home to charge his vehicle. It takes 12 hours of charging to get a running time of five hours, he says.

That's horribly inefficient on so many levels. With petrol, he could've got five hours of run-time from five minutes of "charging". If you're rich, then electric vehicles are a luxury toy. If you're not, then good luck since the tech and infrastructure is still primitive.


The curse of volatility

Elon Musk is not dumb:

Bitcoin crashed from $20,000 to $3,000 in a one-year period starting from late 2017. If that happens again, then Tesla will be very happy to refund in Bitcoin.

Yup. Bitcoin has been the most spectacular gamble of the last decade but it's not a currency given its volatility: down 16% in just the last two weeks.


Diversity is Death

Glenn C. Loury: “A Formula for Tyranny and More Racism”:

[...] group-egalitarians claim that, absent injustice, we should have equal representation of groups in every human enterprise. But how can that be? If groups matter, some people are going to bounce a basketball 100,000 times a month and other people are going to bounce it 10,000 times a month. If groups matter, their members will not do the same things, believe the same things, think the same things, or act and react in the same ways. Groups have their own integrity, expressing themselves in how they live their lives, raise their children, and spend their time. This will inevitably result in a different presence of groups across various human activities. They will not have similar occupational or professional profiles. They will not be present in the same proportions as members of the National Academy of Sciences, as tenured faculty members, as tech entrepreneurs, hedge-fund managers, small shopkeepers, single parents, or petty criminals.

More government power is the objective. The government will decide who is punished: those horrible White men and women. Who gets the $$$$? The Poor Oppressed Coloreds, of course. The malignant unifying force of the colored coalition of the Left is seething hatred of White people. The votes will flow to the Democrats and the stolen trillions of dollars will flow to the POC.


The kittens will roar!

A woman who doesn't understand women:

With hundreds of thousands of women still out of work because of the COVID-19 pandemic, the CEO of a Canadian construction company hopes more women will consider entering male-dominated skilled trades.

"We have a systemic trade shortage right now," says Mandy Rennehan, the founder and chief executive of Freshco, a construction company that specializes in retail maintenance. "That's why I'm focusing on trying to get more women into trades."

I bet the CEO is overwhelmed with applications from STRONG, INDEPENDENT, and FIERCE women who totally love working outside in the wonderful Canadian weather.


Public "education" III

A proper grade 12 economics course would be utilizing calculus to teach important lessons about marginal cost and marginal revenue. Instead, we get retarded noise about NIGGERS, WHORES and BITCHES:

A Queens mom working at home was outraged to discover that her son’s Zoom economics class at a Brooklyn high school consisted of rap videos featuring drug deals, prostitutes and vulgar language, including the N-word.

One mom learned the truth and she's not happy.

When Hagood told her, “I don’t like how you’re speaking to me,” she shot back: “You have rap videos using N-words, talking about whores and bitches and selling drugs. I’m working from home, and this is what I’m hearing my kid in his senior year learning in class.”

Yup.


Punishing the poor

Over a million jobs in danger according to their own analysis:

A federal $15 minimum wage could soon become reality, thanks to Rep. Pramilya Jayapal's seemingly successful efforts to secure its inclusion in the House's forthcoming $1.9 trillion COVID-19 relief package. Democrats are celebrating this potential win, believing that it could lift millions of working class Americans out of poverty. [...]

As part of their rationale for raising the minimum wage to $15, Democrats are citing a new Congressional Budget Office analysis finding that it would lift 900,000 workers above the poverty line. Yet that same analysis also finds that the "Fight for $15" would leave 1.4 million fewer workers employed, and that prices would rise to offset much of the costs. And there's every reason to believe these downsides would paradoxically hit disadvantaged and marginalized workers hardest.

Yup. It's not hedge fund managers, doctors, engineers, teachers or politicians who will lose their jobs when the minimum wage is hiked. Those who do get hit will learn the harsh truth about the real minimum wage: $0/hr.


Lots of explosions and implosions

Is Dan serious? He's comparing a 100-year price chart of gold with a decade of insane Bitcoin volatility!

Forget the whole decade; just take the past twelve months. One Bitcoin was $5,000 less than a year ago. Today, it's worth almost $50,000. Bitcoin is a speculative asset. It's definitely the most spectacular gamble of the last decade. But a currency? Nope. Not with that level of psycho volatility.


Can you feel the compassion?

Kroger Co. will close two Southern California supermarkets in response to a local ordinance requiring extra pay for certain grocery employees working during the pandemic.

The decision announced by the company Monday follows a unanimous vote last month by the Long Beach City Council mandating a 120-day increase of $4 an hour for employees of supermarkets with at least 300 employees nationwide and more than 15 in Long Beach.

The ignorant politicians don't understand basic economics:

The Long Beach ordinance was approved during a Jan. 19 meeting in which council members and Mayor Robert Garcia said that many grocery stores gave employees hazard pay during the early stages of the pandemic but later phased it out.

“These folks that are working at these markets and these grocery stores are heroes,” Garcia said at the time. “This is nothing new. They have received this type of additional pay in the past and if they deserved it in the past, they deserve it today.”

Thanks to his actions these heroes will soon get zero dollars an hour. This is going to be the ugly reality for hundreds of thousands of unskilled and low-wage workers across America in the next few months as the minimum wage is increased and many businesses with thin margins have no choice but to fire their workers and shut down.


There is no equality

A CEO learns a very important lesson:

One of the big decisions that Calvin made when he founded Spill was to pay himself and his colleagues an equal salary.

"There were five people, and everyone was pretty much contributing the same," he says. "So we tried this experiment where we paid each of us an equal amount of money - regardless of experience, regardless of role. We wanted to challenge the traditional model of pay. We decided on £36,000 a year for everyone. We calculated that was a decent living wage for London."

That simple strategy doesn't work when one hires varied staff:

As Spill took off, Calvin recruited new staff such as a software developer, a salesperson and clerical workers - and decided to offer them all the same £36,000 salary. This is when the problems started.

The real world is ruled by the iron laws of supply and demand. You'll get a lot of clerks for $4,000 a month but almost no software developers.

Calvin eventually let go of the equality nonsense and now has pay grades. It's distressing that nobody in his social or professional circle convinced him that this was an extremely bad idea from the start. Well, at least, he learned.


How dare they make money!

The hedge funds cry out in pain as they short you:

WallStreetBets has been banned from Reddit and Discord after conspiring to make money on the stock market, even though they are unworthy of such riches. Shortly after they were banned for "hateful and discriminatory content," the online dictionary Merriam-Webster quickly changed the official definition of "white supremacist" to "anyone who makes a lot of money in the stock market when they’re not supposed to."

Know your place, peasants!


No skin in the game

Average guys lose thousands of dollars in the stock market everyday. They take tremendous risk with their own money. Nobody bails them out when they often fail. Here, we have money pooled from millionaires and billionaires and when it evaporates there's talk of bailing them out!

Absolute fucking vultures! They take all the sweet gains and when huge losses arise, they pass the bill to the American taxpayer. No wonder there's such tremendous hatred for these craven parasites.


Learn to code version 2.0

More immigration combined with an increase in the minimum wage is going to push a lot of jobs to the underground economy. Low-skilled workers in America are really going to feel the pain in the next few years. Most of them voted for these policies.


Decades of misfortune

Yup. It's not a surprise or a mystery. Average wages have been stagnant in America for three big reasons:

  1. Women entered the workforce in huge numbers. Increased labor supply.
  2. Colossal levels of immigration. Again, labor supply increased.
  3. Atrocious free trade which resulted in manufacturing being exported. Decreasing that specific labor demand.

Those who're highly educated and technologically savvy survived and thrived. Those who're poor, below average, and who obviously don't own equity suffered greatly during this time.


Walter E. Williams

I found out about Walter E. Williams in the late 90s. He was an economics professor and a columnist. I spent many hours online reading his bold, logical, and uncompromising prose in those summers in Saudi Arabia. One could instantly see that he was an excellent teacher. His work will inspire many more for years to come.

Thomas Sowell writes about his friend:

Walter once said he hoped that, on the day he died, he would have taught a class that day. And that is just the way it was, when he died on Wednesday, December 2, 2020.

He was my best friend for half a century. There was no one I trusted more or whose integrity I respected more. Since he was younger than me, I chose him to be my literary executor, to take control of my books after I was gone.

This didn't surprise me:

Holding a black belt in karate, Walter was a tough customer. One night three men jumped him -- and two of those men ended up in a hospital.


Fuck you, White men!

Nasdaq is going to push Diversity, Inclusion and Equity (DIE) on White people:

Nasdaq is pushing for greater diversity among the more than 3,000 companies listed on its exchange. [...]

Under the proposal, the majority of companies will be required to have at least two diverse board directors: one woman and one person who identifies as either an underrepresented minority or LGBTQ. If a company cannot meet these requirements, it will not be delisted, but it will need to explain why it cannot satisfy the goals. Failure to publish board data, however, could result in delisting.

According to the article, more than 75% of companies don't meet this retarded diversity standard. The new colored, BBQ, vaginas that will get hired will surely be looked upon as bright and competent.


How to destroy a country

The Canadian economy has been devastated by the political response to the pandemic. Millions of people have lost their jobs. Shelter, food, electricity -- all of it is becoming more expensive. The Canadian government has decided to throw fuel on this fire by planning to import over a million immigrants in the next three years:

On October 30, Justin Trudeau’s government announced its plan “to support economic recovery through immigration”. The plan would increase immigration between 2021 to 2023 by more than 1.2 million immigrants to “compensate for the shortfall” of immigration due to the pandemic.

What will this accomplish:

  1. The out of control real estate market remains crazy. Banks and flippers are happy.
  2. Rents spike as supply is limited. More residents packed in tiny apartments.
  3. Downward pressure on wages as more cheap labor is available.
  4. Public transportation and traffic get worse.
  5. Cultural enrichment intensifies!

Real incomes crushed

Vox Day:

The two primary problems are debt and immigration, as can be seen by this comparison of 1952 and 2020 prices.

A few data points from the table:

Average income in 1952: $6,850
Average house price in 1952: $9,075

Average income today: $33,706
Average house price today: $312,803

The average American could buy a house with 133% of his annual income in 1952. Today, the average guy requires 928% of his annual income to buy a house. In seventy years, an average house has become seven times more expensive!

If one adds the young and foolish students who take on mountains of debt to go through university, then the situation becomes even more dire for them since the increase in tuition is much more worse than the real estate boom.


Socialism doesn't work

Lauren Chen understands that there's no reasoning with such people.


"Free" health care

Think about that. Even with thousands of Canadians like Olson who drive to America every year and pay money to get necessary treatment, there's still a shocking shortage of doctors and a long waiting line in Canada.

The young and ignorant Canadians love their compassionate healthcare system. They pay sky-high taxes towards it their entire lives and when they truly need it in their old age, they see the ugly reality when they suffer through months or years of waiting to see a specialist. Given the mounting public debt, this situation is not going to improve.


The Oppression Continues

Standards are for White people:

As companies grapple with their roles in contributing to racial equality and inequality, diversity and inclusion programs have taken on more importance in the corporate world.

But in retail, one well-regarded bicycle brand led by an industry legend is innovating a more direct approach to address racial inequality: reparations in the form of a 45% discount for Black customers.

Rivendell Bicycle Works, based in Walnut Creek, Calif., is offering the discount not because they are “a nice thing to do, but because they’re owed,” Grant Petersen, Rivendell’s president and founder, wrote in a post explaining the new policy.

This would be a sweet enterprise for a Black dude. Offer your bike-buying services for White people for a small fee. Any White person who pays full price there is, officially, an idiot.


The joys of socialism

The public healthcare system of Ontario, Canada is sending its COVID-19 swabs to ... California!

There are private clinics that offer tests. What's the government response to this beneficial option that reduces the stress on the public hospitals? That's a two-tier system! Super-wealthy people can pay a $100 and get their results in a swift manner! SHUT IT DOWN!

Instead of thanking the private clinics, these thugs want to crush them.


Deceitful Demagogues

The Fake News Media and the lying democrats are counting on the stupidity and ignorance of the average voter to make it look like that a horrible multimillionaire paid less than a $1,000 dollars a year in taxes.

Income tax =/= Total tax!

Of course, the Left will ignore the millions of dollars that Trump pays in other taxes: sales, property, payroll, etc. Here's one example in which waiters and illegal aliens are saints and ORANGE MAN BAD!

AOC is a lying bitch. Trump pays more in taxes in a single year than what a waiter would make in his entire life.


The Road to Darkness

That's on top of one of the biggest disadvantages of electric cars: the time it takes to charge them.


Billions Lost in Mayhem (BLM)

Foundation for Economic Education:

Dozens of people were killed or injured in the violent unrest, and thousands of businesses and properties, many minority-owned, were looted, torched, or otherwise vandalized. Only now are we beginning to realize the full cost of the destruction. New reporting from Axios reveals that the total insured property losses incurred during the George Floyd riots will come in at $1 billion to $2 billion.

That's only the insured losses.

[...] insurance is no panacea for the societal ills imposed by rioting. Indeed, 75 percent of US businesses are under-insured and about 40 percent of small businesses have no insurance at all. Their untold millions in losses don’t show up in the $2 billion figure. [...]

One study of the 1992 Los Angeles riots concluded that not only did the destruction cause $1 billion in initial property damage, over time it led to an economic decline of $3.8 billion in sales activity and at least $125 million in tax revenue.

The worst loss for the Left: the re-election of the God-Emperor.


Spend less

Rory Sutherland is quite astute:

There are two ways to become richer. One is to earn more. The other is to spend less on things you are forced to buy. Given the extraordinary centralising forces of the past 40 years — where the gains of the knowledge economy have disproportionately accrued to rent-seeking city landlords and transport networks — the freedom to work remotely is an instant 20 per cent pay rise. And sorry Boris, but if I travel to work in order to buy a £6 sandwich, in the short term, yes, I am bailing out Pret A Manger, but in the long term I’m bailing out the Duke of Westminster.

The cost of driving a car is staggering for the average person in Canada.

The total cost of ownership for a car is $955 per month when you include all your car payments, gas, maintenance, and auto insurance costs. After 3 years, you’ve paid for your car in full, and your payments drop to $502 per month.

That's $6,000 a year if you buy and use a prudent car for a long time. A cost that's not mentioned? The hundreds of hours burned in miserable traffic. I knew a colleague who often took over one hour to get home after work. During a horrendous snow storm it took him close to four hours. Living close to work (if it's not crazy expensive) or working from home (if possible) is definitely a huge income boost.

Of course, the landlords and, by extension, the banks won't be very happy about that.


Enlightened Riots

The trillions of dollars transferred over to blacks in the past five decades wasn't enough:

Supporters of reparations assume the racial wealth gap between blacks and whites is the result of slavery, and thus, something to be fixed through reparations. “If the 40-acres-and-a-mule that was promised to free slaves were delivered to the descendants of those slaves today, we would all be billionaires,” state Sen. Steven Bradford (D-Gardena) said. “I hear far too many people say, ‘Well, I didn’t own slaves, that was so long ago.’ Well, you inherit wealth — you can inherit the debt that you owe to African-Americans.”

That's the evil of equality. It can never be achieved. The demands are, therefore, never-ending.

Eugene Volokh:

My parents and my brother and I came to the country in 1975. We didn't inherit any wealth in the U.S. (and really none anywhere). I don't owe any debt—because of my skin color my ancestors or theirs—to blacks or whites or Asians, and neither do other Californians.

Utterly irrelevant. What matters is that you've got $$$$ and the retarded losers don't. The power-hungry leftist politicians will have no qualms about extorting money from Asians, Indians, Jews, and even rich blacks in America to appease their precious black vote. In effect, it'll be another wealth transfer from the rich to the poor. The slavery rhetoric is there to call the opponents horrible, evil, racist Nazis who hate poor black people.


Strong, Independent, Fierce Women!

Math is very hard!

The diabolical and predatory universities have increased the costs of higher "education" while the real wages for most jobs are stagnant. Also, the government doesn't trust these teenage idiots with a can of beer but it's perfectly acceptable for them to offer tens of thousands of dollars in loans with shockingly high interest rates that eventually crush the wealth building capacity and sanity of young people.