Saturday, September 10, 2022

A Law of Political Physics

Creating a “blue wave” out of thin air.


Sir Isaac Newton’s third law of motion holds: “Whenever one object exerts a force on a second object, the second object exerts an equal and opposite force on the first.” An example cited by NASA is that “the motion of a jet engine produces thrust and hot exhaust gases flow out the back of the engine, and a thrusting force is produced in the opposite direction.”

Speaking of hot air, I’ve found that swamp critters up excrement creek without a paddle constantly use political rhetoric that exaggerates, misleads, massages, and above all repeats their message ad nauseum. When reality threatens to creep in and ruin your political goals, push back even harder, with an unequal and opposite reaction.

Case in point: the Democrats’ messaging around their “Inflation Reduction Act.” The corporate left-wing media has been filled with reports that the $485 billion package, along with abortion and “Orange Man Bad,” has not only salvaged Democratic hopes for the midterm elections, but sent them soaring. The new law will allegedly be offset with $790 billion of additional revenue and savings over a decade by raising corporate taxes. Yes, only in the swamp can spending almost half-a-trillion dollars be considered “savings.”

But, like the law’s deceitful title, this, too, is part and parcel of the Democrats’ unequal, opposite reaction to political reality. Aiming to fire up the base and sway enough independents, the Democrats hope their messaging will overcome their dismal performance and produce an electoral victory that retains their control of both the U.S. House and Senate. 

It will be a tough row to hoe. According to the Wall Street Journal’s reporting on the Inflation [Production] Act, a recent poll finds Biden underwater with a job rating of 45 percent approving and 54 percent disapproving. On the specific issues, his numbers are equally disheartening; handling inflation and rising costs (39-59 percent); securing the border (34-57 percent); and fighting crime (35-52 percent).

In one area Biden is doing well: lowering drug prices (54-32 percent). Ostensibly, successfully capping prescription drug costs and allowing the government to negotiate drug prices to lower them are part of the new law. This puts in play our law of political physics:  how to properly message the small thing you’ve done that people actually like so they forget all the big things you’ve done that they hate?

Unwittingly, the Wall Street Journal poll provides a vivid example: The poll of “1,313 registered voters . . . conducted Aug. 17-25, 2022 by cellphone, landline and text-to-web (with a) margin of error was 2.7 percentage points” found that

41% of voters favor the new law and 38% oppose it, with 20% saying they didn’t know enough about the plan. Those views were largely split along party lines, with 78% of Democrats favoring the law and 77% of Republicans opposing it. Independents were divided, with 35% in favor and 35% opposed.

In a deeply divided nation, this makes sense. Biden’s party likes it; the opposing party does not; leaning independents tilt toward their predispositions; and pure independents want more information. What follows however, is heavy political messaging:

When told about components of the law, including its ability to allow Medicare to negotiate lower drug prices and expand domestic energy sources, 51% of the poll’s respondents said they favored the plan, 33% said they opposed it and 15% said they were unsure. The biggest shift in support was with swing voters—people who didn’t identify as Democrat or Republican—suggesting Mr. Biden has an opportunity with that group.

Thus, we see a textbook example of political messaging producing the desired unequal opposite reaction to the legislative action taken. 

Omitting or downplaying the unpleasant aspects of the new law, such as tax hikes that will be passed on to consumers, 87,000 new Internal Revenue Service agents, the lack of a prohibition on audits of people earning under $400,000, etc., will artificially lower opposition to the bill. 

Repeat ad nauseum the flattering narrative, diminish or ignore entirely all other aspects of the legislation, usually with the indulgent assistance of the corporate media, and—cowabunga!—a “blue wave” is born.

Still, best not to bust out one’s surfboard, just yet. For the biggest omissions and obstacles to the Democrats retaining control of Congress still remain. While the poll was taken after the Dobbs decision, which showed an increase in pro-abortion voters’ intensity, it was largely finished before Biden’s arbitrary partial cancellation of student loan debts and his odd, dark speech denouncing half the country as a threat. Further, the economic picture remains grim, and Biden’s approval rating, generally, and on the aforementioned issues (save prescription drugs), specifically, remain at levels that historically tend to produce “wave elections” for the opposing party.

At this juncture, the GOP capturing one or both chambers of Congress isn’t a certainty, but it is a distinct possibility. If there is a confluence of scientific and political physics, and a “red wave” manifests itself as the electorate’s equal and opposite reaction to Biden and the abysmal performance of his lackey Democratic Congress, no doubt Sir Isaac would approve.



The long awaited NCIS LA info from TV Guide

 


It's taken all week, a lot of teeth gnashing, and even asking for help (which I very much appreciated just so you know.), but I finally have that long awaited info from TV Guide's Returning Favorites issue!

Here it is:


I blew this baby up the best I could, but for those who need help reading the words related to Hetty, here's the intel:

The Season premiere at least confirms where she's still at (or so it probably thinks when that dead body is found and is probably thought to be her, I'm betting.), and the intel is so bad, it convinces Callen to run off to Syria to find her. But (as I've known ever since the first week of filming), that bitchy old man who is convinced he's in charge of her team stops him. (at least for now).

It also says that Callen continues to miss her while he tries to plan his wedding.

My take: Look. Every part of my gut is telling me that he's going to go out there at some point. There's just no way that he would miss her that much and NOT be provoked at some point to go find her!!

And yes, I'm perfectly aware that this means I once again have to take the worst showrunner of all time at his stupid 'word', but guess what? I have no photographic proof at this time, or video footage of whatever Hetty is doing out there. Nothing else I can do other then hope these stupid teasers end up being true in the 1st 3 episodes themselves, and go from there. (and also hope that through some sheer luck that someone leaks a brand new photo of Hetty in the next month!).

As for if this is the last of the info, no, it's not. TV Line has their big preview of NCIS LA coming up later this month, maybe there'll be more info there. Plus, CBS still has to release the trailer, and the sneak peak videos themselves. Then there's the expectant cast interviews at some point as well. The info train isn't done yet, there's still time in the next month to get that absolute proof I need to make my decision on watching the episode. (just hope I don't run out and have to very impulsively make that decision a few days before it airs.)

(Oh, and info on the rest of the team is included with the photo. But their boring lives aren't of any interest to me right now because they should be focusing on finding Hetty!!)


And we Know, Devolution Power Hour, and more- Sept 10

 



Long week, and no real payout. Here's tonight's news:


Former Feds Give Justice Department a Bad Name

The nonstop partisan gaslighting justifies accusations by Trump and his supporters that the Justice Department largely exists to criminalize political dissent in America.


Andrew Weissmann is one weird dude, to say the least.

Weissmann, an author, law professor, and MSNBC legal analyst, is a prolific user of social media—but rather than post a head shot on his Twitter bio page, Weissmann has a photo of a dog staring down a doll resembling Donald Trump lying face-up on the floor. It’s unclear if the dog is supposed to represent Weissmann, described as Special Counsel Robert Mueller’s “pit bull” during the Russia election collusion investigation, or it’s just another indication of Weissmann’s insatiable obsession with the 45th president of the United States.

Instead of posting freakish pictures of Trump, Weissmann should send Trump a thank you letter every day for the rest of his life. Without Trump, Weissman—best known for having the Supreme Court unanimously overturn his criminal prosecution of Arthur Andersen in 2005 and his failure to uncover any evidence that Trump was in cahoots with the Kremlin to sway the 2016 election—wouldn’t be the media’s go-to source for explaining why this timethe Bad Orange Man is really going down.

He is the de facto head of a cottage industry populated by former federal prosecutors paid to give “expert” legal assessments on the Trump scandal du jour. On any given day, Weissmann and his onetime co-workers can be found on cable news shows or in the pages of the Washington Post ranting about Trump’s alleged disregard for the “rule of law” and reminding their equally-rabid followers that “no one is above the law.”

And the FBI’s pillage of Mar-a-Lago on August 8 put this cabal into overdrive. Despite the amusing shift in talking points about what federal investigators took from Trump’s residence that day—hysteria over secret nuclear codes quickly morphed into hysteria over empty folders after a list of seized “evidence” revealed 99 percent of the contraband included personal items such as news clippings and books—the former feds are convinced the trove is proof of Trump’s guilt.

Weissmann recently asked a Democratic congressman why the House Intelligence Committee isn’t investigating Trump on this matter, too. “There’s been no explanation from Donald Trump whatsoever as to why he took these, why he didn’t return them, why are the folders now empty,” Weissmann said to Representative Peter Welch (D-Vt.) on MSNBC last week. “So one question I have is whether some part of Congress . . . shouldn’t be asking the private citizen who was a public servant to come and testify to explain what happened. He is a citizen, all of us would have to respond to a congressional subpoena.”

Yes, Andrew Weissmann—a former president of the United States under investigation for violations of the Presidential Records Act is just like everyone else.

Not to be outdone, Weissmann’s former Justice Department colleague, Glenn Kirschner, is one of the most unstable anti-Trump commentators. Like many fed-turned-talking-heads, Kirschner also worked for Robert Mueller at the U.S. attorney’s office for the District of Columbia, the same office handling all criminal prosecutions related to January 6. Among his many psychotic opinions is the suggestion Trump should face manslaughter charges for those who died of COVID-19 while he was president. (No indication that Kirschner has made the same assessment regarding those who died while Joe Biden has been president.)

The empty folders have Kirschner in full meltdown mode. Admitting he has a “bone to pick with DOJ,” Kirschner told MSNBC’s Tiffany Cross last week that it’s way past time for federal prosecutors to pull the trigger. 

“Donald Trump knows what he did with the classified documents that were supposed to be in the 43 empty classified documents folders that were taken from his office,” Kirschner raged on Saturday. “If Donald Trump were any other person on the planet, you know what law enforcement would be doing? They’d be getting an arrest warrant for him, they would lock him up, they would Mirandize him, and if he waived those rights they would interrogate him night and day until he shared with law enforcement how he might have compromised our national security. They’re not doing that.”

Of course, neither Kirschner nor anyone in his crowd can give a cogent explanation as to what the national security threat might be. They don’t even know if the allegation of a threat is accurate or, if true, how Trump threatened the safety of Americans. But that doesn’t matter to the braindead viewers of MSNBC who, like these former fed commentators and unlike most Americans, still trust the Department of Justice—so long as it’s in the hands of a Democratic Party appointee. Nor does it matter that Kirschner’s “any other person on the planet” language should include a long list of government officials, from Hillary Clinton to James Comey, who escaped punishment for possessing classified records.

But these aren’t just any papers, according to former federal prosecutor Renato Mariotti: they’re comparable to illegal drugs. “Most of the statutes at issue in the Mar-a-Lago documents case are more similar to a narcotics case than a complicated bank fraud or obstruction of justice case,” Mariotti wrote in Politico on August 29. “Top Secret classified documents are a lot like narcotics from a criminal law perspective. You really don’t want to possess them if you are not authorized to do so.”

Barbara McQuade claimed if she were a prosecutor handling the case, the mystery of the empty folders “would really make my stomach turn.” McQuade, a former government prosecutor and current law professor at the University of Michigan, insisted the empty folders are the smoking gun that “makes it almost impossible to decline to file criminal charges against Trump.”

Los Angeles Times columnist and former fed Harry Litman suggested a solution to the mystery. “Even the best case scenario with the empty folders is that Trump (almost certainly—who else would have the gall to do it?) riffled through the classified docs to see what he had. This undoes the image of just scooping them up along w/ shirts and M&Ms and keeping them in boxes.”

Notwithstanding the absurd and often juvenile approach to such serious issues, these comments belie the feds’ purported claims of objective legal expertise. Weissmann and company are either really stupid or recklessly partisan—or both. At a time when Americans are rapidly losing faith in the nation’s most powerful law enforcement agency, this sort of unhinged spin from former Justice Department employees does nothing to restore the public’s confidence.

To the contrary, the nonstop partisan gaslighting justifies accusations by Trump and his supporters that the Justice Department largely exists to criminalize political dissent in America. And that reality, not a bunch of personal and government papers housed at Mar-a-Lago, poses the legitimate threat to the country’s safety and security. 



Royal beekeeper has informed the Queen's bees that the Queen has died and King Charles is their new boss in bizarre tradition dating back centuries

 

The royal beekeeper - in an arcane tradition thought to date back centuries - has informed the hives kept in the grounds of Buckingham Palace and Clarence House of the Queen’s death.

And the bees have also been told, in hushed tones, that their new master is now King Charles III.

The official Palace beekeeper, John Chapple, 79, told MailOnline how he travelled to Buckingham Palace and Clarence House on Friday following news of The Queen’s death to carry out the superstitious ritual.

He placed black ribbons tied into bows on the hives, home to tens of thousands of bees, before informing them that their mistress had died and that a new master would be in charge from now on.

He then urged the bees to be good to their new master - himself once famed for talking to plants.

The strange ritual is underpinned by an old superstition that not to tell them of a change of owner would lead to the bees not producing honey, leaving the hive or even dying.  


Speaking from the Buckingham Palace gardens, Mr Chapple told MailOnline: ’I’m at the hives now and it is traditional when someone dies that you go to the hives and say a little prayer and put a black ribbon on the hive.

‘I drape the hives with black ribbon with a bow.

‘The person who has died is the master or mistress of the hives, someone important in the family who dies and you don’t get any more important than the Queen, do you?

‘You knock on each hive and say, ‘The mistress is dead, but don't you go. Your master will be a good master to you.’

‘I’ve done the hives at Clarence House and I’m now in Buckingham Palace doing their hives.’  

At the height of summer, Mr Chapple takes care of over a million bees though by late summer their numbers have dropped.

He said: ‘In Clarence House there are two hives and in Buckingham Palace there are five.

‘At this time of year each hive contains 20,000 each, maybe a bit more but I’m not very good at counting them. It’s over a million in the summer.’

Mr Chapple revealed he has been the official palace beekeeper for 15 years despite not realising he had turned up for an interview for the job.

He said: ‘I got an email from the head gardener here at Buckingham Palace to come here and talk about bees.

‘I thought they had a problem with bees but it turned out they wanted to keep bees so henceforth I look after the bees here.  


He added: 'I’m retired. I’m 79. It’s my hobby, beekeeping and now I look after a few hives for important people.

‘Number one is the Queen, or rather was, the Queen.

‘I was the Queen’s beekeeper and hopefully now I’ll get the job of being the King’s beekeeper.

‘It’s been about 15 years that I have been in the role.

‘In all, I have been looking after bees 30-plus years. It started because of my wife’s love of honey.

‘So I bought her a book called Keeping Bees In The Back Garden. She read the book and said, “Well, it’s over to you now”. So I got the job of keeping bees in my home and it has just developed from that  


It has been a wonderful hobby and an interest and it has taken me all over the world. I’ve met wonderful people and seen lovely sights that only beekeepers can ever see.

‘I’m standing now on the island in Buckingham Palace and there is not a living soul I can see.

‘I can hear a few birds and the traffic and that’s it.

‘It has been a wonderful privilege to do things like this for the Queen and hopefully now for the King.

‘I hope they still want to keep the bees on their premises. You never know. They might say, take them away but I don’t think that will happening though really you do never know.

‘It’s up to the new tenant of Buckingham Palace.  


John takes care of predominantly Dark European Honey bees, specifically London mongrels.

These have been native to mainland Britain since before the closing of the Channel Landbridge, when sea levels rose following the last Ice Age.

Telling the bees is a traditional custom of many European countries in which bees would be told of important events in their keeper's lives, such as births, marriages, or departures and returns in the household.

If the custom was omitted or forgotten and the bees were not ‘put into mourning’ then it was believed a penalty would be paid, such as the bees leaving their hive, stopping the production of honey or dying.

The custom is best known in England, but has also been recorded in Ireland, Wales, Germany, Netherlands, France, Switzerland, Bohemia and the United States.

Mr Chapple’s wife Kath, who sent John off for the day to inform the bees of the sad news of the Queen’s death, said: ‘The tradition is you tap gently on the hive and say your mistress or master is dead but your new master will be good to you so treat him well.’  

https://www.dailymail.co.uk/news/article-11199259/Royal-beekeeper-informed-Queens-bees-HM-died-King-Charles-new-boss.html?ito=social-twitter_mailonline   






The bees have also been told, in hushed tones, that their new master is now King Charles III  




What Should the GOP's Closing Argument Be?

AP Photo/Akili-Casundria Ramsess

In just under two months, voters will go to the polls to cast their vote in federal races across the country.

There is a growing concern among Republicans that the Democrats are making a comeback. Their fears are based on three facts.

  1. Polling is showing a Democratic surge.
  2. There are low-quality candidates running under the GOP banner.
  3. Trump’s microphone is getting bigger again.

Whatever you may personally feel, there is data out there that proves these fears are valid and they shouldn’t be taken lightly. By the same token, Republicans should also stop, take a deep breath, and not panic over these facts. There is positive news out there and there is a way forward for the GOP if they want to hold on to the long-touted “wave” that was speculated to be forming.

Regardless of what anyone may tell you, it is virtually certain that Republicans will take House in November. Redistricting alone will make that happen, regardless of polling or candidate quality. Most of Washington and most of the press seem to accept that. The real question is how many House seats will the GOP lead by.

The bigger problem for the GOP, however, is in the race to control the Senate. The two parties have a 50-50 split, with the advantage going to the Democrats by virtue of Vice President Kamala Harris holding the tie-breaking vote. Right now, there is some narrow polling that shows the split could prevail rather than the chamber falling into GOP control.

The polling concerns among the GOP are based on current panic and may be ignoring historical trends. Tom Bevan at RealClearPolitics broke down the historical trends, noting that the current tightness we’re seeing in the polling, particularly where the Generic Congressional Ballot is concerned, may actually be indicative of a wave.

Now look at 2014 – another good Republican year. Again, leading into election year the same pattern was evident: Democrats’ consistent lead in 2013, which ballooned to more than 6 points in October, disappeared at the end of the year. Most of 2014 saw the two parties running basically even: neither side had a lead greater than 2.5% through the entire primary season; for much of that time it was less than a single point.

Democrats entered Labor Day weekend in 2014 with a 1.4% lead in the generic congressional ballot. And then things changed. Ten days after Labor Day, the GOP had shot to almost a four-point lead over the Democrats – a lead they would never relinquish. On Election Day, the GOP scored a 5.7% national vote win over the Democrats, translating to a pickup of nine Senate seats and 13 House seats.

Based on Bevan’s analysis, we may not be looking at 2010 midterm numbers – numbers that were exceedingly good for Republicans – but there is every possibility that the numbers could break back toward the GOP. The Democrats are currently riding a wave of lower gas prices, the Dobbs decision, and some legislative wins. But that excitement also appears to be fading. Biden is still vastly underwater where the economy and inflation are concerned, and those “kitchen table” economic issues that bother families most (inflation, an unstable job market, supply chain issues, and more) still have voters worried.

Individual polling from various states also shows that the Democrats may not be as strong as they themselves believe. In Georgia, Stacey Abrams hasn’t led Gov. Brian Kemp at any point, but Herschel Walker has started trending ahead of Sen. Raphael Warnock in several recent polls. In a surprise poll (though from a Republican-leaning firm, Trafalgar), the New York Governor’s race is actually closer than you might expect, with Rep. Lee Zeldin within striking distance – only five points down. Adam Laxalt in Nevada is only one point behind incumbent Sen. Catherine Cortez Masto.

Currently, Ohio is still trending red, though J.D. Vance’s lead over Tim Ryan isn’t where Republicans would hope they would be. Blake Masters over the month of August began narrowing the gap between him and incumbent Democrat Mark Kelly.

The only race of major concern for the GOP is (and rightfully should be) Pennsylvania. But there are non-polling signs that the tide may be turning against John Fetterman, particularly after an editorial in a home state paper calling into question whether or not he would be able to stand up on the Senate floor and debate the key issues of the nation.

GOP Senate Candidate Mehmet OZ/Election 2022 Trump

Joe Cunningham reporting for RedState 

This also should ease some of the fears about candidate quality. Yes, Republicans would like for J.D. Vance to be running further ahead of Tim Ryan in Ohio, and yes, Mehmet Oz probably should not have become the GOP candidate in Pennsylvania. If the GOP flips Georgia, for example, but loses Pennsylvania, there is still a 50-50 split. If the GOP takes Georgia and Nevada or Arizona, then you’re looking at a 51-49 advantage. There was never any chance the Republicans would get a filibuster-proof Senate, but even a one-seat advantage is an advantage.

Perhaps the biggest concern, then, for the GOP is whether or not Trump’s legal issues (and whether or not he’ll announce a run for President before the midterms) will have any sort of impact. Trump has lacked a platform since he was tossed off social media, and the media has tried very hard to keep him in as many headlines as possible. If Trump were to be indicted before the midterm, this risks motivating the GOP even more than they already are, and considering that the DOJ at best appears politically motivated in its actions of late, an indictment in the middle of an election cycle would kick fears among conservatives into overdrive, ensuring they do everything they within their power to win.

But Trump announcing a presidential bid (which seems to be more and more unlikely, considering the RNC has threatened to cut off financial assistance for legal battles if he does, and he has a lot of legal battles going right now…) would also distract from the GOP’s campaign messaging in this last stretch. It is likely, then, that the DOJ and Trump are at a statement, with neither willing to risk hurting their own side.

This all begs the question, then, as to what the GOP’s strategy should be.

In this last stretch, the GOP should be focusing on positive messaging. The Democrats are running on division and fear, as evidenced by President Joe Biden’s speech last week. That speech was seen by both sides of the political spectrum as the home stretch speech of the Democratic campaign (something, according to rumor, even Democratic strategists are quietly admitting was a bad move to make). The optics were bad and the speech was worse.

The GOP, meanwhile, can learn from Herschel Walker’s latest ad campaign in Georgia, focusing on uniting voters. As more and more voters worry about the future, Republicans should, essentially, borrow the Biden campaign’s 2020 promises of a return to normalcy and unity. They need to focus on the good in an effort to help voters feel better about the future. The Democrats offer dire warnings of the future, so the GOP should offer a sunny solution.

Right now, voters need to have their fears assuaged, if not eased entirely. The GOP is in the best position to do that, should they decide to stop the in-fighting and actually wrap up this election cycle on a high note.




Democrat Public Official Robert Telles Makes First Court Appearance After Arrest for Murdering Journalist


Brittany Sheehan reporting for RedState 

On Thursday, Clark County Public Administrator, Robert Telles was arraigned in court pending open murder charges for the slaying of Las Vegas Review-Journal investigative reporter Jeff German. I have extensively reported on the investigation, the arrest, and the formal announcement from Las Vegas Metropolitan Police Department, headed by Sheriff Joe Lombardo.

Telles was brought before Judge Elana Lee Graham in Department 1 of the Las Vegas Township Justice Court in Nevada. Judge Graham ordered Telles to be held without bail, continuing the arraignment hearing until next week.

Images and videos of Telles in court have surfaced on Twitter. Telles can be seen with bandages on his inner arm from wounds he self-inflicted ahead of his arrest.

 

District Attorney Steve Wolfson addressed the press following the hearing. Wolfson said the evidence in the case is compelling, and that he expects to file charges for open murder against Telles, which will be formally announced at the next hearing.

Wolfson commended LVMPD for their work in this case. Wolfson answered continued questions from the media about his involvement with the decision to have Telles released in the hours ahead of his arrest. Due to the constitutional rights of defendants, the decision to release Telles was made until further evidence and results met the legal standard to cause the arrest. Wolfson said that the decision to seek capital punishment in this case will not be made for months. The DA acknowledged that evidence showed that the DNA from Telles was found on the hands and potentially under the fingernails of the victim, Mr. German.



A statement was issued by Clark County on Thursday saying that the County is reviewing their options under the law for how to remove Telles from his current elected position as the Public Administrator. The County indicated employees of the Public Administrator’s office are working from home, and the office will remain closed until further decisions are made.

The full statement reads:

“The death of Jeff German was both shocking and tragic, and we join with our community in being stunned at how this situation has continued to evolve over the last few days. The Public Administrator is an elected position and the County is reviewing its options under the law regarding Robert Telles’ current status as the Public Administrator. The safety of our county employees and the public is our top priority, and the County has suspended Mr. Telles’ access to county offices or property. County employees of the administrator’s office are currently working from home, and the office will remain closed until a determination is made about when it can reopen. When county management was made aware of the personnel issues at the public administrator’s office a couple of months ago, the decision was made to no longer have staff in the public administrator’s office report to Mr. Telles and this solution will be in place until the public elects a new Public Administrator in November. Clark County continues to cooperate with the LVMPD on this active investigation. Our condolences are with Jeff German’s family, friends, and colleagues at the Review-Journal.”

The next court hearing is expected to be held on Tuesday, September 13, according to the District Attorney.



U.S. Household Net Worth Drops $6.1 Trillion in Second Quarter, Despite Home Values Increasing $1.5 Trillion


The U.S. Federal Reserve has published the second quarter 2022 balance sheet of U.S. total household wealth [DATA HERE].

In the second quarter (April, May, June) 2022, the total U.S. household wealth dropped $6.1 trillion, despite a calculated increase in home value of $1.5 trillion.  The majority of the loss is connected to a drop in Corporate Equity (stock market) and household investment in the stock market.

FED “The net worth of households and nonprofit organizations declined $6.1 trillion to $143.8 trillion in the second quarter. The value of stocks on the household balance sheet declined by $7.7 trillion, while the value of real estate increased by $1.5 trillion.”  Keep in mind this is backward looking data, and after a period of decelerating rates of growth, the overall real estate market is now in a period of decline as calculated for the most recent month of July [DATA].

The equity position of homeowners is now considerably less than the equity position when the feds calculated the second quarter household wealth (two months ago).  Part of the issue goes back to what we have been discussing with inflation and specifically energy driven increases in fuel and electricity.

Inflation sucks money out of the economy, making people less wealthy.  Energy inflation sucks money exponentially faster out of each household, potentially making the already working-class poor, much poorer.

The higher prices paid for housing, food, fuel and energy do not contribute to anything, the increased costs are just sucked out of the consumers’ pockets without generating any additional value.  It just costs more to live, and that reduces wealth.  Consider this the cost of going green.

Joe Biden and his economic team are introducing phrases like “a growth recession,” to explain a dynamic where earned wages are replaced by government subsidy.  You can no longer afford food, energy, housing etc, so the government steps in as the provider of subsidy based on income level to supplement the gap between wages and the new costs of products and services within the Biden created “green” economy.

However, in the bigger of big pictures, the government does not create wealth.  Wealth is created outside government by private activity.  Government income via taxation is lowered when the economic activity of the private sector drops.

There is currently a massive lag in recording dropped economic activity that is going to surface very soon.  The rate of energy price increase has been so large, so fast, the ability of producers to transfer the cost creates an economic lag.

Total product costs (except imports) are rising faster than finished good prices to consumers.  At the same time, consumer demand for goods has dropped dramatically due to the speed and rate of increased energy costs.  As a combined result, the equity market will likely continue to decline as each earnings report comes in lower than prior expectation.

Now, looking at wealth over time, what happens to the economic model of Biden when current housing value ($41.2 trillion) simply drops back to 2020 levels ($33.0 trillion a conservative real estate market correction)?

Continued higher prices to consumers, less money to government, less economic activity and lower household equity.   That’s trouble, big trouble.

Wave #3 of food inflation starts hitting hard next month as the increased costs at the field start to transfer through the supply chain from harvest to the fork.

WASHINGTON DC – […] The sour mood appears to stem from record food, energy and housing prices. Positive views of the grocery industry dropped 14 percentage points from last year, the biggest drop in the survey. The real estate industry dipped 9 points, the second-largest decline.

Just 22 percent of respondents reported having a positive view of the oil and gas industry, down from 28 percent last year. Twenty-nine percent reported having a positive view of electric and gas utilities, down from 36 percent last year. 

Grocery prices rose a stunning 13.1 percent over the last 12 months ending in July, the largest annual increase in more than four decades, according to Labor Department data. 

Housing affordability has fallen to its lowest level since the Great Recession, according to the National Association of Home Builders, with rents and home prices at record levels.

Gas prices reached an all-time high in June before falling slightly in recent months, while energy bills are also soaring amid huge demand for natural gas. (read more)

Meanwhile Biden’s economic team is bragging that Main Street is in better shape?

“The President’s first two years in office have been two of the most productive in American history, and as the Blueprint explains, these accomplishments are all part of one economic vision.”  (more)