The economy hasn't done this since 1979

Added: 2026-05-14

[00:00:00]Okay, so we've got to talk about inflation as we just got a new read uh headline then consumer prices rose 3.8% annually in April, the highest since May 2023 and basically this is the highest in three years. Uh that is your main story. Um uh overall inflation is 3.8 core is 2.8 if you want to take out food and energy but I mean let's be honest here inflation's at 3.8 and in fact probably higher because this is an old read and it is really ugly out there. Uh says here prices were up 6% I think that's month over month. Energy accounted for over 40% of that increase.

[00:00:40]And again this is a read from April. So imagine how May is going to look when we go into next month when we get a read on it. I think everyone knows inflation is up. Uh there's a chart here that really stood out. And for those of you who live through the energy crisis of the 70s, I'd like to hear your thoughts on this.

[00:00:55]A lot of people in our community are older, so you would you would know about this stuff, but basically history is repeating itself. You just look at this chart. It's crazy. Um, inflation cooled in the 70s. So that would be the talking about the purple line up above there before rebounding. Today's pattern looks similar. So we're comparing basically when they had an oil crisis, a revolution in Iran, uh, then inflation starts creeping up. was peeking out well above what 14% double digits. We're at 3.8 just the pattern similar. Will it get to that again? I mean I mean that's anyone's guess but if we keep spiraling down this path I mean it's not out of the question at this point. Um I mean this the everything I keep reading is the the reads that we're getting right now on inflation. This is from April, but the oil shock, the price of diesel, all these things it's going to bleed out through the economy and you know it takes like it could be say for example the the the chaos we're seeing today we could see it say 6 months from now reflected in food prices still like like and it could like everyone keeps talking about basically compounding. It's just it's just numbers and I was thinking about this today. This is true story. I hadn't bought eggs for a while. Okay, last time I went to the grocery store to get eggs, I bought three packages because eggs are expensive. Uh, here in Korea, when you buy a package, I think it's like 18 basically. So, it just it looks different than what is in USA, it's not 12. So, I bought three. So, we got like a bunch of eggs. And I went to go buy eggs at the grocery store. Before it was like I remember being sixes and sevens. Today, it was like eight and nines and it was just like, what in the world? And and it's just I I really know. I I was there and just like, okay, so what am I going to eat for breakfast?

[00:02:36]So, I went to went to the cereal aisle and I was like, "Okay, if I want to go cheap and sugary, it was like six, right?" Which isn't really good. And then there's just not that much in cereal. Eggs are just going to be better value overall. More expensive cereal is more like 11. That was from Canada.

[00:02:52]Yeah, we get actually Canada cereal these days. Granola that is. But I'm just telling you guys like it's not just USA. It's all around the world. This oil shock is is hitting everyone and it's actually hitting other countries even worse than USA. USA like even your price are going up and you're just like oh my god this is crazy. I mean it it is it is worse than other places even. So this is why many people around the world are ticked. It just affects your daily life, right? Uh and and I don't want to ever downplay the struggles of the people in Iran. Inflation is is really ludicrous there. Like double and triple for many things. Also you got US and Israel bombing you and Trump always threatening to blow your civilization up. That kind of stuff. Like it's just the world's insane. So you know but right now we're talking about inflation. I just want to say I don't ever make light of of this the the sudden things are going on or that Israel is bombing every day. It's like in the news every day. Uh we're also talking about inflation at 3.8, wage gains at 3.6. So basically inflation outpaces any increase you have in your wages if you've gotten any increases because remember this is all on average. So some people if you haven't got any increases in your at your job then your wages and it's like you're you're you're really in trouble.

[00:04:00]And then that's why I've been showing you guys various videos of Americans basically describing being underwater every month and you have to put that on your credit card and that just compounds and then you're going to get in the issue which we haven't talked about a lot. Just want to mention it though borrowing costs which are likely going to be elevated. I think there is a high chance of that and so this imagine the people living off credit cards how that's going to compound. It's just the whole thing is is awful. Um, Heather's uh was mentioning here, Americans are trying to work more hours to keep up with as gas and food prices rise. So, people want to work more. Uh, even so, real average weekly earnings decrease.

[00:04:37]So, even though you're working more, it just I guess the your real, you know, wage because you have inflation uh is decreasing.

[00:04:45]This whole thing is is ugly. Um, it's appearing in the polls actually for Trump's approval on the economy. 70% disapprove uh for Trump. That's from April 30th to May 4th. So just this past week, Trump's disapproval rating on the economy has hit a whopping 70% in the new CNN poll. Never reached even 50 in his first term. So this is actually and actually it's been trending that way for a while. Yeah. So I'm I'm looking at the the dates here. Yeah. 70. So it was at 69 the week before, 61 back in January 2026. Now we're at 70% disapproval on the economy for Trump. Who is this 30% that approves? It's just crazy whacked out stuff. Um, and then Trump's tweeting out, this is this is real. Pictures of himself on the $100 bill. I mean, nothing surprises me anymore. Trump's a lunatic. I mean, this is it's obvious.

[00:05:35]He's talking about the stock market sinking uh Iranian ships and he's tweeting Obama, Biden, and I guess Pelosi in uh that should be the um the Washington Mall, I guess, the reflecting pool being dirty. like he's got this weird obsession. He complained about the the New York Times. He's talking about Cuba now. Are we attacking Cuba? Who knows? And then tweeting out again these like old tweets he's been retweeting. I guess he's talking about low IQ stuff, more stock market, talking about wars, and then laser beams being gone and bye-bye fast boats. This is the the It's ridiculous. So, I just want I'm showing you what it is because you need to see it for yourself to be like, "Yep, the dude's crazy." Um, Iran war truce fragile as US rejects Thrron's latest offer. So, as inflation spiking all around the world and we're looking at still, right, is Trump going to start bombing again? And I I'm I'm as frustrated as you guys are because it's like, why why are we just why are we just letting this dude continue doing these illegal wars? Isn't it crazy? his his his own party is is crazy. There's no other way to put it, right? And I get it. Some people get upset like, "Why don't Democrats do more?" I mean, the Republicans control the the the Congress, right? And in Congress, you know, in a normal country, it doesn't matter which party you're in. You'd be like, "Yo, let's not do illegal wars, okay? Like like let's let's not just waste all our spending on on that." And in fact, uh, this was Hakeset today.

[00:07:05]He's testifying um in front of Congress basically talking about, oh, we're going to get the war economy going, right? Uh, President Trump's war department has begun to turn the lights on back in manufacturing towns across the country.

[00:07:18]So, this literally this is their discussion today, the war department and going to do manufacturing and weapons.

[00:07:22]Wow, fantastic. We are firing up the American economic engine at every level of the defense industrial base. This is mainly a historic budget. It is fiscally responsible budget and it is warfighting budget, right? And they're want it like 1.5 trillion. It's like the biggest budget in history. It's a massive increase. I mean budget's already big now. Was it 900 billion in that range?

[00:07:43]And again, they want like 1.5 trillion.

[00:07:46]I think that's what it is. It's just like ludicrous amounts of money. And then I guess that's what our economy is based on. And you have to put this in context because you're getting some uh whacked out stuff going on in the UK.

[00:07:57]Yeah, I did see it for those of you watching in UK. Uh what's going on with Starmer? I guess people want him out. Um because there's there's a recent election and like party on the right did better, party towards the left did better and I guess he's kind of odd odd party out I guess you could call it. Um and then already the bond market started selling off and then basically borrowing costs are like the highest since 2008. I remember it was it was headlines this morning and I'm just like what in the world? And a lot of these things that we've been seeing lately is just like headlines like the great financial crisis kind of stuff. And when you put that together because because it becomes global, right? They're having trouble in UK. Political turmoil, rising energy costs, the math just doesn't work anymore. And maybe you're going to keep borrowing and borrowing to infinity the same way that Trump appears to to be doing, right? This is it just it all it all fits together in just massive chaos.

[00:08:44]And when you get multiple countries in chaos at the same time, and then you get poor economies everywhere, I mean, this leads to not good things. I I'll put it in that phrase. And then Trump tweets out like just whacked out stuff like this. Like, hey guys, we're all going to have AI for the FBI. Wow, fantastic.

[00:09:00]Director Cash Patel, we brought the FBI out of the past and into the AI age.

[00:09:05]Like, like, okay, so when the economy is struggling and people don't have any jobs, your whole solution is guys, we're going to get more robots and more automation. Like, it it doesn't make sense. And not only that, like that stuff uses energy, right? So, you know, I'm I'm deeply concerned about what's going on. um we talk every day on on the channel and this particular chart right here though was the one that really stood out to me and the question is and then you can look at the chart again is will we repeat essentially the oil shock and crazy double digit inflation that you saw in the 70s and the 80s. Um, I mean, like I said, if if the world keeps heading down that way and as long as Trump stays in power and thinking, you know what, I'm just going to deficit spend, borrow, borrow, borrow, then waste all that money on on war. Because this is true, like people, some people mentioned, Chris, it's not just the borrowing, it's what you're spending it on, right? Because theoretically, just theoretically, let's say we, you know, went deficit spending, but then we're investing in the country to actually improve the country opposed to, again, they want the war economy. And that's from their own words talking. I'm just putting up here. You can see it for yourself. So, it's just whacked out. And um I think more people need to stand up and just be like, "Yo, let's put an end to this." So, that's my thoughts on this. Please be careful out there.