Tag: Economics
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Cumulative inflation under Biden is 17% while under Trump it was only 7%
If you want to know why spending is up while the public feels pessimistic about the economy just look to cumulative inflation or compound inflation if you will. It’s very simple but legacy news won’t report the reality. It’s the cumulative effect of inflation. It’s like the concept of compounding interest in a savings account…
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California $20 minimum wage eliminating jobs before it takes effect
The California minimum wage for fast food employees is stlet to jump to $20 per hour in April. Two Pizza Hut franchisees are cutting all their delivery driver jobs as a result. How many jobs will be lost once it takes full effect? How high will prices have to rise? Never buy fast food in…
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Question: What does an inflation adjusted 4.9% increase in GDP mean?
This is an honest question. It’s reported the GDP number is inflation adjusted. But the inflation numbers don’t include things like food and energy. GDP is the measure of all final goods and services produced in a time period. I take that to mean GDP includes food and fuel. How can we reconcile the true…
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China and France complete their first LNG transaction in Chinese Yuan instead of the U$ Dollar
This is not good news. It’s bad enough China and Russia are trading in Yuan and strengthening their alliance. Now, we have an ally, that we defend with American taxpayer dollars, trading with China in their native currency. Chinese national oil company CNOOC 0883.HK, 600938.SS and France’s TotalEnergies TTEF.PA have completed China’s first yuan-settled LNG trade through the Shanghai Petroleum…
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Government regulation of banks resulted in larger disasters
Since the creation of the modern banking regulatory apparatus the losses, as a percentage of GDP, have grown from 1% in 1913 to 7% in 2009. The safer the government tried to make banking the greater the risks people and businesses took. This resulted in larger failures and losses. “It is scarcely to be expected…that…
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Safeguard your wallet… President Biden says the banking system is safe.
I would feel better if he would have never given a speech. In hindsight the collapse of SVB is simple. They were under water in government treasuries. When the Fed raised interest rates the bonds they held became worth less than the amount they could sell them. They didn’t have the liquidity to handle the…