Are We Heading To An Economic Extinction Event?

The clip from the movie, Dr Strangelove, is the final scene with Major Kong (Slim Pickens) heading straight for what would be the last extinction event––nuclear annihilation. It's a great film, a black comedy, but at the time of the Cold War, it portended an ending for humanity.

Today, we aren't too fearful of nuclear destruction, though the tension has increased since the Russian invasion of Ukraine and the response of the West. What is at significant risk is a total economic collapse that could see a kind of economic extinction.

So what is driving this economic crisis of inflation, a period of increasing volatility and rising interest rates? There are two significant factors: the obsession with climate change and the reckless spending and printing of money. The primary offender is America. When the U.S. sneezes, the rest of the world catches a cold.

Think back to before 2020. Trump had the U.S. economy humming, the energy sector was booming, and people felt confident about the future. However, there were warning signs as the Federal Reserve kept interest rates artificially low, using the Keynesian economic theory of increasing government spending.

Then came Biden and his clan. It's like someone turned a switch, and the economy started deteriorating. The button was Biden constraining fossil fuel production. Almost immediately, the price of oil began to rise and with it, inflation. Remember, Biden told us his goal was eliminating the fossil fuel industry. We feel the effects worldwide because the West, including the EU, Australia and New Zealand, are intentionally trying to destroy the oil industry. It's entirely irrationally, and we all feel the effects; however, it could be dire this coming winter for Europe. The wholesale price of European energy in some countries is skyrocketing.

1000% increase in one year: the wholesale price of electricity in France at a stratospheric level

Goldman Sachs predicts that inflation in the U.K. could top 22% by 2023. These economic catastrophes could see people freezing to death and unable to heat their homes without government subsidies. So many countries have bought into climate change and the net zero diatribes of their exponents. People like Al Gore, Greta Thunberg, Leonardo DiCaprio and Harrison Ford are ignorant about climate. Scientists like climatologists and atmospheric physicists know there is no emergency; hence 1200 of them have signed a declaration that there is no climate crisis or emergency.

There are many similarities between the Covid narrative and the climate change propaganda machine. "Climate change" has become part of the vernacular without question. Yet, all the predictions made by the climate hustlers have not panned out. It's like the false pronouncements that the Covid injections are "safe and effective".

The West's obsession with Russia as evil has made this whole energy situation worse. Since the fall of the Soviet Union, they have pushed against Russia. Rather than diminishing the rhetoric and engaging with Russia––except for Donald Trump––the animus has continued unabated. Now Russia is in a stronger position with high energy prices and is cutting off some gas to European nations. The Russian strategy promoted by Biden and his European allies has collapsed, and the people of Europe are suffering as a result.

Making matters worse was Biden and his Democratic-led Congress went on a wasteful spending spree. However, this was not all Biden. The Trump administration also spent an inordinate amount—under the banner of Covid. The chart below shows that the result has been an increase of 50% in the U.S. national debt in five years.

In 18 months, Biden and congressional Democrats have spent about $3.8 trillion, including passing legislation with the preposterous name of The Inflation Reduction Act—itself inflationary. Who is suffering? The average American is copping almost 9% “official” inflation, though the actual rate is double that. Australia is similarly going through an explosion in prices with rising interest rates.

Consumer sentiment has turned negative in the U.S. for small businesses who are feeling inflation's wrath and having difficulty with their August rent.

40% of small business owners can't pay rent

As if that is not enough, the Fed is pouring gas on the fire by raising rates and planning more interest rate hikes in 2022, and tax increases are coming. 

Speaking of the Fed, how did they get it so wrong? They kept rates artificially low for so long rather than tamping down some demand and borrowing by gradually increasing interest rates. Instead, for the past year we got, inflation is "transitory" from Jerome Powell, the Fed head, and Janet Yellen, Biden's Treasury Secretary. Economists warned them about impending inflation? They have shown themselves to be utterly incompetent, and now in a panic, they are raising interest rates dramatically. The same holds in Australia. Mortgage rates are almost double what they were a year ago. All we've had are excuses with zero accountability. No one has resigned; the hubris of these people is phenomenal. Screw up in the government, and you continue having a job. 

We have a global conspiracy headed by the World Economic Forum (WEF) that has western governments in its grasp, pushing the climate change agenda. These people are going for population reduction––which is already happening––and the implosion of capitalism. People like Bill Gates would be happy if the world's population declined to one billion. However, they or their offspring won't be affected.

So we hear Klaus Schwab, head of the WEF, tell us, "You vill eat de bugs" or "You vill own nothing and be happy"; no, we won't be happy. The globalists will have “saved” the planet but have no one left to enjoy it. If they have their way, we'll ride that bomb, like Slim Pickens in Dr Strangelove, right on target. Let's hope we have not reached the point of no return.