Prophetic Steve Bannon has been preparing his audience for a very long time for the economic collapse of the United States as a result of the power-grabbing and destructive practices of the administrative state, and there is no doubt that he knows what he’s talking about.

This week, with the assault on the American taxpayer by an out-of-control elite political mob, which has raped the American tax base with selfish and self-serving sponsorship of nonsense, is an excellent opportunity to reflect on the forecasts of Bannon, the prominent War Room presenter. Bannon has told his audience that all indications lead to a harsh winter for Americans.

Back in October, Bannon cautioned listeners to prepare for a rough Christmas season. Citing an October piece in The Economist about a “Shortage economy,” Bannon claimed he had all the evidence he needed to anticipate difficulties.

The phrase “shortage economy” was invented by the Hungarian economist János Kornai, who used it to critique the old centrally-planned economies of the Eastern Bloc communist regimes.

The Economist then reported:

After the financial crisis, the international economy struggled with a shortage of expenditure for a decade. Anxious families worked down their loans; governments enforced austerity; and apprehensive businesses refrained from investing, particularly in physical capacity, while recruiting from a pool of labor that appeared to be unlimited.

Now spending has returned with a vengeance, as governments have encouraged the economy and consumers have splurged. The demand rise is so intense that the supply is straining to keep up. Truck drivers are receiving signing bonuses, an army of container ships is moored off the coast of California awaiting port clearance, and oil costs are on the rise. As increasing inflation terrifies investors, the gluttonous economy of the 2010s has given way to a scarcity economy.

covid-19 is the direct cause. A $10.4trn global stimulus package has unleashed a ferocious but unbalanced rebound in which consumers are spending more than usual on products, straining global supply systems that have been starved of investment. During the epidemic, the demand for electronic goods has skyrocketed, but a scarcity of the microchips used to manufacture them has crippled industrial output in several exporting nations, such as Taiwan.

Asia’s garment manufacturing have been closed due to the spread of the Delta variety. In the developed world, migration is declining, the economic stimulus has filled bank accounts, and not enough individuals are interested in switching from unpopular professions such as selling sandwiches in cities to in-demand ones such as warehousing. From Brooklyn to Brisbane, firms are in a frenzy to hire additional personnel.

And consider the spending present our federal employees gave themselves this week; Bannon was correct, and the public is unhappy, but who can stop them?

Should Congress approve the $1.7 trillion omnibus spending bill?

— Elon Musk (@elonmusk) December 20, 2022

The Oct. War Room broadcast was highlighted by the Gateway Pundit, showing Bannon talking about economics and preparing people, telling them that it’s time to get ready for hard times.

WATCH:

More on this story via The Republic Brief:

Martin Walsh also covered Bannon’s comments for Conservative Brief reporting:

“During a segment on his “War Room Podcast,” Bannon warned that The Economist ran a report with the headline: “The Shortage Economy.” CONTINUE READING…