The Great Economic Pretending Yet Again Meets Main Street Reality
The great economic pretending is predicated on denying that major western economies are shrinking because political leaders are collectively destroying cheap and reliable energy production (oil, coal, gas), while simultaneously chasing expensive and [un]sustainable energy development (wind, solar).
The Build Back Better / Green New Deal climate change agenda is destroying every economy based on ‘collectively agreed‘ energy policy. Energy driven supply side inflation is crushing consumers in every western economy. Sales and purchases of goods have stopped. Affording food, fuel and housing is the focus of billions. Yet, denial is everywhere.
It was not that long ago, June 23rd to be precise, when Fedex gave a forward-looking forecast based on existing operational results. In late June Fedex anticipated a generally stable continuation of business operations. Here we are, three months later and Fedex business collapsed in the last quarter. CEO Raj Subramaniam says shipping demand unexpectedly plummeted. The great economic pretending meets reality.
Keep in mind, about six weeks ago Maersk, the international shipping company that delivers millions of containers of goods all around the world, mostly by ship, said they saw demand and orders plummeting as shipping warehouses were full of unsold goods {link, Aug 3rd}.
[The Fedex Collapse] – […] The company scrapped its forecast for its earnings in its current fiscal year that it had issued less than three months ago. For the three months ended Aug. 31, FedEx now projects adjusted earnings per share of $3.44 and $23.2 billion in revenue. That’s below analysts’ consensus forecast of $5.14 adjusted earnings per share and $23.6 billion in revenue, according to FactSet. (more)
The company is also revising its 2023 financial outlook and said it expects conditions to worsen further in its second quarter. Economists have sparred for months over whether or not the US is heading into a recession. (more)
The Great Pretending Continues….
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