Tag: Economy
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China supplants U$ Dollar for Yuan in cross-border transactions
The U$D is still used 83.71% compared to 4.5% for the Yuan according to Reuters. How long will the U$D be at the top? Is the push to move away from fossil fuels really a move away from the Dollar? Is Europe an ally, competitor, or enemy in this? What effect will a US or…
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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…
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Inflation in reality explained
Creating $5 trillion out of thin air devalues your money. It’s as easy to understand as a diluted glass of tea. The Federal Reserve financed $5 trillion of debt by printing money. This resulted in a dilution of the value of money, causing inflation. Printing money out of thin air is poison to an economy.…
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Retail sales at U.S. stores declined 0.6% in November WITHOUT adjusting for inflation
In October retail sales in the U.S. rose 1.3% and in November sales declined by 0.6%. Neither measure is adjusted for inflation which is over 7% for each month. Let’s forget for the moment inflation is no longer calculated to include the things you need to survive, like food and gasoline. October and November are…
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Shortage of everything except bad government policies
You’ve most likely heard we have a shortage of baby formula, nurses, teachers, and such. But did you know there is a shortage of accountants, Amoxicillin, diesel fuel, natural gas, jet fuel, Adderall, veterinarians, Thanksgiving turkeys, and bus drivers? Go to Google News, search “shortage”, and scroll through the ugly truth. Who would’ve thought shutting…