As effective demand dries up, downsizing has now arrived; 11 firms announce layoffs

Inflation is way beyond the official number, John Williams at ShadowStats.com places the real inflation rate, not stripping out energy and food, at 17 percent, based on methods emloyed in the 1980s to calculate the CPI (Consumer Price Index). After, that date, the Democrats under Bill Clinton altered essentially the definition of inflation by stripping out energy and food to steal the Cost of Living Adjustment from old folks, very similar to Joe Biden who altered the definition of what constitutes a recession.

#1 Ultratec Inc. says that it will be laying off more than 600 workers.

#2 Electric truck maker Rivian will be laying off approximately 840 workers.

#3 7-Eleven has announced that it will be eliminating 880 corporate jobs.

#4 Shopify is laying off about 1,000 people.

#5 Vimeo says that it will be eliminating 6 percent of its current workforce.

#6 Redfin will be reducing the size of its workforce by 8 percent.

#7 Compass will be reducing the size of its workforce by 10 percent.

#8 RE/MAX will be reducing the size of its workforce by 17 percent.

#9 Robinhood will be reducing the size of its workforce by 23 percent.

#10 It is being reported that Ford “is preparing to cut as many as 8,000 jobs in the coming weeks”.

#11 Geico has closed every single one of their offices in the state of California, and that will result in vast numbers of workers losing their jobs…

Taking into consideration the real rate of inflation without the cooking of the data by the Bureau of Labor Statistics, we can see more clearly that real wages have been on a continuous decline since the mid 1980s.

Americans were conned into taking on debt to buy goods and services beyond their means. Why I personally referred to this as neo-feudalism or being bonded to debt slavery or laboring to service debt. After this next downturn real wages will not have advanced in 40 years. Whatever gains in productivity went almost exclusively to the professional managerial class because capital had been able to shift the balance of class forces to themselves through the mechanism of offshoring jobs that broke the back of the union movement.

I believe the downsizing will be deeper and wider than 2008, and why the world will be going to war shortly because of an extreme economic crisis of effective demand. If China takes out Taiwan and its chip making capacity it won’t take long for the world economy to grind to a halt. My intel says the Russians are moving their best troops and weapons to East Siberia, in anticipation of their joint invasion of North America with the Chinese. The Chinese are already converting factories in Shanghai to war production, and the U.S. should be doing the same except for the incompetence of robotoid Biden’s foreign relations team. Candidly, the Democrats are simply Quislings to their paymasters the CCP. Further there is no guarantee that the migrants here presently will either fight or produce for the United States. They will be dead weight in any war scenario. After all, most of them voted communist and installed the Commucrat Nazis in power. As of today, my assessment is we will lose the coming war, be occupied, and broken up between the victorious parties to the conflict. China in particular plans to seize most of the arable farmland in the soon to be former United States. That is, looking at the situation without rose colored glasses. The so-called White Hats sat around repeating the mantra of “follow the plan,” while our adversaries were actually deploying new advanced weapons systems to win an actual war.

Next stop: an economic death spiral of layoffs, decline in effective demand, and still more layoffs until the bleeding is halted by war and military production.