Society's Child
Inventories.
Specifically, the $121.9 billion increase in private, mostly nonfarm, inventories in the first quarter.
Cutting to the punchline, this was the biggest inventory build in history.
Another punchline: in Q1 2015, the US economy rose by a paltry $6.3 billion in nominal terms to $17.710 trillion.
Here is how the total GDP growth compares to just the increase in inventories, which as we wrote earlier this week, is the primary reason why the world is now gripped in a global deflationary wave.
In other words, if US inventories, already at record high levels, and with the inventory to sales rising to great financial crisis levels, had not grown by $121.9 billion and merely remained flat, US Q1 GDP would not be 0.2%, but would be -2.6%.
Oh heck, just round it down to -3.0%
Which means that as this massive inventory overhang is eventually cleared out (once the US runs out of space to store all these widgets, gadgets and raw materials, here's looking at you Cushing) US GDP will be pressured even more with every passing quarter, or else the moment of deflationary rapture when everyone is forced to liquidate and/or dump this inventory at the same time, will result in a monetary supernova which will leave the Fed with no choice but to literally paradrop money on the continental US.
Comment: The truth is that the predatory capitalism we have needs to be reset. But don't expect the psychos in charge to let it go without their typical 'control through chaos' antics. Check out:
- Turning America into a battlefield: A blueprint for locking down the nation
- Operation Jade Helm: Are US special forces training for martial law?
- Why the Government is so afraid of the self-reliant
Reader Comments
June 21st, 2012
“Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile…Once a nation parts with control of its currency and credit, it matters not who makes that nation’s laws…Usury once in control will wreck any nation.” – Prime Minister William Lyon Mackenzie King
In 1974 Prime Minister Trudeau stopped using our Bank of Canada which served Canada so well keeping us out of serious debt. He handed over control of our monetary system to the Private Bankers.
We have lost our Democracy because the power is concentrated in the Banks and Corporations that control our politicians.
Today half your taxes go to pay the private banks interest on our needless debt of 582 Billion.
Thats million per month out of every riding.
A total $ 170 million per day in every riding in interest
That is $50 billion per year
Every man, woman and child owes approx. $17,000.00
A Family of 4 owes $68,000.00
Compound interest on the debt keeps increasing the debt.
It is never paid down. We have paid the debt 3 times over yet it is still there.
Using the Bank of Canada we built the railways, universities, St Lawrence Seaway, brought in the CPP and Medicare. What have we done since?
Source
Globalization and the Bank of Canada
by Connie Fogal
The reason our governments do not maximize the power of our own Bank of Canada is because to do so would be contrary to the command of the globalization process, the privatization of the world, led by the IMF and the World Bank. Canada now uses the Bank of Canada for only about 1% to 5% of its financing of the nation’s needs. The rest is borrowed from private banks and hence the escalating exponential interest growth on the national debt.Many countries have had a central bank like the Bank of Canada that was owned by the people which was used to put money into the system for infrastructure etc at no or very low cost to the money. Any cost that did arise goes/went back to the countries’ coffers. Private banks like TD, CIBC, Royal etc charge high interest and keep it for their own profits...........continued
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And that Cushing buildup is close to being filled, I think around 2 - 3 weeks or so... add a little more to the pipelines and any tankers not already holding inventory and and the party looks set to end rather soon... perfect time to 'pull the rug out' with a rate increase... 'just because'... or as the Brits would say, 'for shits and giggles'.
Once again, we are SAVED by another miraculous inventory build, who could have thunk it?








It started in earnest in the United States with the theft of the people’s money with the Federal Reserve Act of 1913, unconstitutional, where the making of money was given to private entities. Then the sixteenth amendment which declared an illegal income tax, legal.
In Canada, this happened in 1974 when Pierre Trudeau signed away our national Bank of Canada to private banksters. (Bank of Canada Act 1974) Until that time, Canada borrowed from itself at little to no interest. Imagine what could have been done here in Canada with trillions of dollars instead of paying unnecessary interest on money we were supposed to be printing ourselves!
Mr. Fagan goes deep, back to the beginning so to speak, and exposes all the tricks and deceptions used to enslave the people, not just of America, but the entire world. What’s revealed is truly sickening and heart-wrenching, so be warned.
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