War on Fossil Fuels #LateStageSocialism: First Republic Bank Officially Collapses, The Welfare State of Western Nations iS Still Dependent on Cheap Energy produced by FOSSIL FUELS – May 1, 2023,

 

 
It should be obvious to anyone who comprehends BASIC economics what’s going on here. When I write about Late Stage Socialism, I’m referring to Austerity Measures or Economic collapse. The Western World is reaching a tipping in which most people assume this will blow itself over because, after all, western society has always bounced back.

 
The difference now is that the Socialist Left in most Western Nations have decided to declare war on FOSSIL FUELS. Declaring war on fossil fuels is a DEMAND for higher costs, which result in higher consumer prices.

Cheap energy powers our standard of living, and the Climate Alarmists want to phase out, ban, and minimize the usage of fossil fuels, which is fine, but the welfare State many rely on today is INSOLVENT in a DEFLATIONARY environment.

Yes, I wrote DEFLATIONARY; the economy is DEFLATING; sure, consumer prices might be rising, but CONSUMERS are spending LESS. Regarding job numbers, I’ve stopped looking at job numbers because a lot of the jobs being created are via wealth redistribution schemes.

In Canada, as an example, Prime Minister Justin Trudeau recently pledged $13 Billion dollars in subsidies to a Volkswagen electric vehicle battery factory. Now, if Batteries are the future, why do they require government help?

Now this $13 Billion pledge also equates to the Canadian Federal government basically paying Volkswagen to EMPLOY people. I’m using this blatant example, but there are other examples like this everywhere in which public-private partnerships are CREATING JOBS that otherwise wouldn’t exist.

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I have to point out that EVs are NOT profitable yet; every EV company is currently LOSING MONEY; I have to also point out that we don’t know the TRUE cost of cobalt mining WITHOUT slave labor from the Congo.

So the true price of lithium, which by the way, is extremely EXPLOSIVE and not as easy to MAINTAIN as these central planners want you to believe hasn’t even been PRICED INTO the market yet.

Not sure how fast lithium will replace ALL THE OTHER FOSSIL FUELS, but to get there, the economy has to DEFLATE, and the purpose of CENTRAL BANKS is to hide deflation by PRINTING MONEY.

Well, it’s more difficult for central banks to lower interest rates when lowering interest rates ENCOURAGES malinvestment. The central banks lowering interest rates to ZERO and even negative in some countries led to more GOVERNMENT intervention into the economy.

If interest rates were left to the market rate, this centrally planned concept of PHASING OUT FOSSIL FUELS likely would never had been implemented in the manner in which it was.

I argue it shouldn’t have happened, but had let the MARKET set interest rates; there would be no delay of bank failures. It’s the anticipation that many are having that the Central Banks will lower rates back to zero, that more people haven’t taken their money out of the banks.

There are still many people betting that the Zero Interest Rate Policy will return; I am reminding people that Late Stage Socialism is the result of massive REGULATIONS on economic activity, and the only way to reverse this is through AUSTERITY measures. Money is merely a medium of exchange, and currently, whether you like it or not, the global economy is heavily reliant on fossil fuels.

The worst part of the war on fossil fuels that most people are not comprehending is the WELFARE STATE because that’s what CONSUMER PRICE INFLATION destroys. I’m already seeing a lot of calls for price controls, and if you know anything about the minimum wage law or rental controls, both of which are PRICE CONTROLS, they create SHORTAGES of things.

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Rent controls lead to SHORTAGES of rental apartments, and minimum wages lead to SHORTAGES of low-wage jobs; in REACTION to price controls, what you’ll likely see is the private sector cut its losses in certain parts of the economy, meaning that even if the central banks go back to zero percent interest rates, not only will get consumer price inflation, you also might see SHORTAGES!

By the way, in case you’re not paying attention every time a bank fails, that’s a SHORTAGE of money being created.

First Republic bank collapses, JPMorgan to take over, FDIC says | abcnews.go.com
First Republic Bank has become the third bank to fail in recent months and the giant JPMorgan Chase will assume all of its assets, according to the Federal Deposit Insurance Corporation. The FDIC said the deal avoids the agency having to use its emergency powers and would minimize disruptions for customers.

Interesting Times Ahead