Tag: Economy
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Bidenomics brought you cumulative inflation of 17% in only 19 months
Since Joe Biden took office in 2021 the cumulative effect of compounding inflation over less than two years has amounted to 17%. This means today it takes $1.17 to buy what would have cost you $1.00 in January of 2021. This is using the U.S. Bureau of Labor Statistics web site. It’s important to look…
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Biden can’t “invoke’ the 14th Amendment because there is nothing to invoke
Most of the media is telling you the President is weighing his options as to whether or not he will invoke the 14th Amendment to the U.S. Constitution. The Wall Street Journal has an editorial which explains there is nothing to invoke and if Congress & Biden can’t agree on terms to raise the debt…
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China supplants U$ 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.…