Tag Archives: inflation

Recent Posts

Grab Your Socks!

2 Comments

Oh well, here we go again. Ask five Economists a question , and it’s a guarantee you will get at a minimum of six answers, possible more. Why? Because it is a “social” science. Give someone a $1,000 stimulus check, what will he do with it? Well, that’s where the “social” comes in. What’s the state of the economy at the time, who is getting this check, married or single, children, how many, where does he live, how much debt does he have, working, retired or unemployed? These and many more questions come into play before any one can predict what he does with it. And even then, it’s merely a prediction! I  cannot believe some of the garbage this former Fed chairman is spewing, but then I looked at her bio and saw where she was educated and who she worked for, and it all came to light. 

For what it is worth I am in the “No Fed Camp,” that is I do not believe in the Federal Reserve. I believe they do more harm than good and sometimes their actions are disastrous e.g., late 70’s when mortgage rates climbed well over 12% So, based on what this lady is saying, I believe we are on the road to disaster. Stupid comments by someone who should know better.

I could reprint the article for Bunkerville, but I’d like you to go see it for yourself and decide where you fit into the inflation world that is heading our way. Just click the link below

Yellen Concedes Inflation Is About To Surge, Says It Will Be A “Plus For Society”

Originally posted 2021-06-07 10:26:51.

Current Events

Making America 1979 Again

4 Comments

Good Morning Gang, it’s Saturday, the day before the traditional Memorial Day, initially referred to as Decorations Day by MajGen Logan after the Civil War. Personally, I celebrate on the traditional Day, 30 May. So, I will lower my flag tomorrow morning and raise it back up at noon. Changing the day so federal workers could get another day off with pay didn’t impress me since my experience with those snakes in the grass (in the Corps, we called them “Sand Crabs”) has been  most don’t earn a day’s pay anyway. But then that’s my personal opinion and preference.

So what are the swamp creatures up to as they begin their long weekend cook out? Well, the big talking point this week has been inflation. What is that? Well simply, it is the rising cost of goods and services.  There is cost-push inflation where the cost of goods is caused by a rise in the cost of production e.g., gas. Then there is demand-pull inflation where the rise in prices is caused by an increasing demand and firms push up prices due to the shortage of goods e.g., toilet paper. LOL.

The swamp doesn’t fear inflation, just like Peanut Jimmy didn’t in the 70s, but beware folks, the signs are there, they are just being ignored.

By: G. Maresca

You do not have to be a scholar with a dollar to notice how prices are increasing. The Consumer Price Index that measures costs for goods and services increased 4.2% in April. Gas jumped 9%, while housing prices rose 17%.

The Powerball Lottery jackpot is now a tank of gas, a bag of groceries and a sheet of plywood.

A late seventies ambiance has returned with the cyber-attack on the Colonial pipeline cyber-attack and its resulting gas lines. Add to it emboldened Iranian Ayatollahs in a cooking Middle East; an increasing U.S. crime rate; a refugee crisis at the southern border, and a simmering Cold War II. The recent visit Joe and Jill Biden had with Jimmy and Roslyn Carter makes it official that the torch has been finally passed. Their photo op, if you have not seen it, is one for Ripley’s Believe it or Not.

The Carter’s even gifted to Hunter Biden their home-brewing recipe to Billy Beer.

It is time travel Democrat style and for those 41 and younger, welcome to 1979.

At least back then the music was better, and you didn’t need a second mortgage to attend a major league baseball game. Kids went to school and actually played outside, and mask wearing was strictly for Halloween.

It was also in the summer of ‘79 that Carter gave his infamous “malaise speech” about “the erosion of our confidence.” Today, Biden successfully dismantles the myth of white privilege and primacy every time he comes in contact with a microphone.

The Labor Department’s latest jobs report had employers adding only one-quarter of an anticipated one million jobs, while unemployment claims actually increased. Many are choosing not to work since being paid to stay home is now an option. Such a major disincentive to work is unprecedented and brings with it the predictable consequence of labor’s availability. With jobs plentiful combined with escalating unemployment benefits only serves to grease the rails for socialism.

Former Treasury Secretary under Bill Clinton and former head of the National Economic Council for Barack Obama, Larry Summers spoke truth to power when he warned against too much stimulus.

There is no true stimulus, only irrational leftist reasoning that justifies increased deficit spending that is endorsed by bogus good intentions that leads down a path to fiscal ruin.

No one on either side of the aisle gave Summer’s reasoning a second thought.

Biden and his Treasury Secretary Janet Yellen actually claimed, “there is no significant inflation.” Record-low interest rates coupled with a rise in prices is what happens when central banks have a surplus of money that outstrips demand. As we stifle the supply side with handouts, while printing dollars by the trillions the result is Inflation. Prudent advice to any weather forecaster is to look out the window first. Perhaps this dynamic economic duo needs to go grocery shopping and fill the gas tank before making their next inflation forecast.

In a recent press conference, Vice President Kamala Harris ignored a question about inflation with her infamous laughing crackle as she quickly walked away. Perhaps she was on her way to the southern border?

The fear of inflation is why the 10-year U.S. Treasury yield is up 80%, and the 5-year U.S. Treasury yield is up 123%.  Spending and printing comes with consequences as you cannot print your way to prosperity.

Perhaps Biden should consider surrounding the White House with an orchard since he and his economic team believe money grows on trees. The only problem would be when Biden ends up chopping down all the trees for the paper to print even more money.

When the Federal Reserve finally admits that there is too much inflation, interest rates will rise and polarize the economy followed by a toxic bout of stagflation. Such economic malaise hurts the same people that the spend and tax Biden Democrats say they want to help.

Moreover, any stock market gains will be deceiving thanks to inflation where any capital gains taxes will be a direct result of the dollar’s decline.

In 1979, the Carter coast-to-coast malaise paved the way for Ronald Reagan’s conservative reform.

History would do well to not only rhyme but repeat itself.

 

Happy Memorial Day everyone. While cooking steaks, burgers, dogs, and drinking your favorite libation, please remember the nearly 1.1 million Americans who gave their lives  so we could celebrate this day! And remember to lower you flag to half mast on which ever day you traditionally celebrate and raise it back to full staff at noon.. Semper Fi, Jim

 

 

Originally posted 2021-05-29 11:23:49.

Recent Posts

Jumping the Stimulus Turnstile

1 Comment

Another very informative article from my good friend and strong contributor to the blog, Greg Maresca. To add to his great discussion, let me remind everyone that consumer spending makes up 70% of our country’s GDP. There many other ways to stimulate the economy and increase consumer spending at the same time i.e., tax cuts, which do not increase the deficit, but always bring in more revenue. Remember Reagan and his “Trickle Down Economics”?

 

 

 

By: G. Maresca

The COVID stimulus train has added another $1.9 trillion to its ever-growing caboose. Uncle Sam is running the nation’s treasury like a Parker Brothers’ board game. Through continuous stimulus spending, Congress, who controls the nation’s purse strings, has dismissed the burgeoning federal deficit outright.

The numbers throughout this COVID cash craze are astonishing: In just 16 months, the Federal Reserve has pumped over $9 trillion into the economy. According to Forbes, last June the U.S. accumulated more debt than in the 200-plus years from America’s founding in 1776 through 1979.

The stimulus bills have provided temporary relief but are toxic over the long-term. Nearly half of the unemployed will be paid more to stay home, while keeping unemployment artificially higher which will result in calls for more stimulus.

Economic incentives matter but handouts?

History will look back on this COVID era with disbelief that so many were bamboozled into believing that freebees were a good idea or even sustainable.

There is no real stimulus. Such semantics masks (pun intended) what is happening to the economy that resembles a Bowery wino. Government giveaways and money-printing have their inevitable effects. Stimulus checks will not grow the economy, but it will stimulate the federal debt and cause inflation.

Chetan Ahya, chief economist at Morgan Stanley, “The driving forces of inflation are already aligned, and a regime shift is underway.” Perhaps forgotten is that inflation is the most universal tax of all.

Bestowing money on those who work is scandalous because it steals from their children and grandchildren. Such fiscal policy only grows government and restricts liberty, while handcuffing small businesses – the economy’s driving force. Future generations will face burdensome taxation and cut services thanks to this intergenerational redistribution of wealth.

Stimulus spending has resulted in a higher national debt percentage of GDP than at the end of WWII and both political parties are to blame. They seem to believe that zero interest rates will last forever.

Politicians have not missed a paycheck, nor have they read the 5,600 pages of latest bill that is the handiwork of an army of aides acting on behalf of lobbyists and interest groups.

Some highlights have $750 million for border walls in Jordan, Syria, Lebanon, Egypt, Oman and Tunisia. Apparently, the only country that Congress feels should have open orders is our own. Other pork chops include $1.3 billion for the Egyptian military, $130 million for Nepal; $135 million for Burma, $34 million and $85 million for Cambodia, and $231 million to pay down the national debt of Sudan, where apparently Sudan’s debt matters more than our own.

Ten million has been allocated for gender programs in Pakistan. Rather than cash, we should send the Pakistanis the annual army of leftist gender studies graduates. Don’t forget $600 to non-American citizens and the $40 million to the closed Kennedy Center in Washington, D.C. In an insult to fiscally responsible states, $350 billion is allotted to bail out states like New York and Illinois, who run yearly deficits.

For all their self-aggrandizing rhetoric about helping those in need with additional stimulus spending, the reality is that both parties are helping themselves to excess at the expense of future Americans.

Considering what has taken place over the course of less than a year, it begs the question: Will there ever be a time when politicians won’t be “stimulating” the economy? Tax, spend, regulate, then “stimulate,” which is just another synonym for more spending.

You cannot spend yourself into prosperity.

If history tells us anything the forgotten 1920-21 economic crisis taught that sometimes the best stimulus is none at all.

Rather than expanding government, a true fiscal “stimulus” initiative would promote and support the private sector. One of the best ways of doing that would be to reduce the regulatory and tax burden on U.S. corporations and small businesses.

Paying customers are the best stimulus for any enterprise, while allowing them to keep more of the money they earn would also underscore that it is their money, not Uncle Sam’s.

Instead of forcing businesses and schools to close, while restricting our civil liberties and bribing the masses through federal handouts, open up the economy, tax less and invest our taxes into America.

Watch inflation, it’s like Murphy, always waiting for a misstep, which Trader Joe will certainly provide..

 

 

Originally posted 2021-01-30 10:50:45.

Current Events

SOTU – Nothing but a Pack of Lies

12 Comments

Before I introduce this post I need to update you on my battle with USAA. The inevitable finally happened; all these years, 49 as of this month to be exact, I bragged about not hearing this from my bank, insurer, brokerage firm, mortgagor, and all around favorite organization in the U.S. But, it has happened. I called last week to discuss something with them and this is what I heard, “Welcome to USAA, press one for English.” That did it for me for I do not do business with a company that  doesn’t understand where they are and what language we speak. I am not trying to disparage those who speak Spanish, I am merely saying, if you want to live in the U.S. learn our language. If I would happen to move to some South American country would I expect them to speak my language? Hell no I wouldn’t; it would be my responsibility to learn their language.

So, starting this week I re-joined and began moving everything to NFCU to which I belonged starting in 1967 when I returned from RVN. I stayed with them until I moved to USAA in February 1974. Needless to say, I am really impressed with what they offer and am sure I will be happy with them. 

Okay, now to the post. Another good one from my friend and fellow Marine Greg, I did not watch the SOTU address as I knew it would be nothing but one lie after another and sure enough that appears to be exactly what it was. I have convinced myself that his election was, in fact, fraudulent in every aspect. I mean, do we really have that many stupid idiots in America that thought he was the best choice. I don’t think so, the problem is Trump just pisses everyone off all the time. He has certainly ruffled my feathers of late by his disparaging remarks against my Governor. I don’t think he knows DeSantis very well as he is not one he wants to spar with. And now that Haley has thrown her hat in the ring, he is even attacking her.  What does he think he is going to gain by doing that? I remember my favorite president of all times, Ron Reagan saying, “A Republican should never speak ill of another Republican. ” Trump had best shut his mouth. If the primary were held today, I would not be voting for Trump as I personally believe he hasn’t a snowball’s chance in hell of becoming president again. Shut the hell up Trump!!

Smoke, Mirrors, and Balloons                                                                                  By: G. Maresca
Since the Biden Administration took office, their billowing nonstop smokescreens are asphyxiating. Consider the humiliating withdraw from Afghanistan to the proxy war with Russia in Ukraine to record inflation claiming food, energy, and a stagnant stock market.

The mirrors are as plentiful as a carnival funhouse with the daily flood of illegals pouring across our Southern border as Biden toasts “President Harris,” while calling out to dead congresswomen and confusing Cambodia with Colombia. Biden’s response: blame Donald Trump.

Then there was the manifestation of a series of flying objects – the first one identified as a Chinese spy balloon. Four more objects appeared within days. Coincidental or is the logical conclusion too overwhelming? If Biden doesn’t know what these are, we should know.  For half a century, Washington claimed Biden doesn’t know anything, but when he admits he didn’t know anything, nobody believes him.

With layer upon layer of bureaucratic red tape that holds Washington hostage, we were fortunate that when Biden finally gave the order he didn’t shoot down the Goodyear blimp at the Super Bowl.  Popping China’s spy balloon was the first thing Biden did to reduce inflation since taking office. With Biden at the helm, it is like watching a kindergartener juggling hand grenades.

It took some cowboys in Montana to call attention to the first balloon. Then Biden claimed it posed no threat, only to shoot it down.  One more downed balloon and Biden gets the top prize at the funhouse.  The balloon didn’t penetrate Washington airspace because the Chinese knew there was no intelligence there to collect.

Being a national security issue, this is the bipartisan concern the nation has been searching for as China is testing American resolve. The communist Chinese must exit from our universities, research facilities, corporations, and from any land acquisitions.

President Obama’s East Asia Strategy afforded the Chinese plenty of intelligence correlated electronics, hardware, and software. Recall the 2009 hack of F-35 fighter-jet blueprints to the continuing theft across the board of intellectual property through clandestine cyberattacks. China’s thievery of American data and technology continues to be met with little to no consequences.  How much American technology was attached to that balloon?

The Rutherford Institute reports foreign entities owned 40.8 million acres of American agricultural land with China owning nearly 192,000 acres that were all near military bases. Customs and Border Protection reported a 700% increase in Chinese migrants at the Southern border as we witness the consequences of open borders and air space.

China is on a ceaseless campaign to embarrass and humiliate America while becoming the world’s dominant military. The obvious seems lost on those shining a seat with their groove thing in the Oval Office and throughout the Pentagon. How long have these flights been going on without a response and why? Sadly, the military is too consumed with reducing their carbon footprint and pushing their diversity inclusion and equity (DIE) agenda.

Biden appears compromised, yet Congress does nothing.

Since this is the Chinese “year of the balloon” and for better protection of their fleet of spy balloons in the future, the Chinese will be changing from white balloons to rainbow-colored ones stenciled with the letters: BLM.

From all these classified documents and balloons floating around and Hunter Biden’s foreign business deals, and the “big guy’s” stake in them, where are the straight answers? The nation’s media, its fourth estate, does not have the slightest intention of pursuing any of this.

American companies that deal in technology should not be doing business in and with communist nations. This did not occur during the Cold War with the Soviet Union, so why is today any different. Let China have the NBA. They deserve each other.

If anything, a Chinese balloon has brought to the forefront our military vulnerabilities that must be addressed. As a nation, we are not isolated from foreign military threats, and our pathetic response begs many questions about our military preparedness.

Meanwhile, at the southern border ….

We are trying to solve a spiritual problem through political means. Until we realize this, the situation and all the hot air surrounding it will only continue to inflate, and those Chinese spy balloons will be the least of our concerns.

Originally posted 2023-02-18 10:10:46.

Current Events

Here’s Greg

4 Comments

In case you haven’t noticed, I have been absent, UA, AWOL, or simply MIA. LOL. Sorry gang, but am still on vacation traveling in the RV visiting relatives. Am currently in MD to celebrate my daughter’s 60th this Saturday. For the first time on the trip, I have a solid Wifi connection so I thought I would peak at what is in my laptop. WOW. For those of you who do not know what minimize means, let me say again. NO EMAIL TRAFFIC. There are a few exceptions and Greg is one of them and he has sent me a good one. With that, here’s Greg.

Clearing the ledger

By: G. Maresca

There is plenty to say about brevity, but that would defeat the purpose.  Neither time nor space affords me the opportunity to opine on the many headlines, stories, and political twists that comprise an average news day – let alone an entire week.  With that in mind, let’s clear the ledger.

The Federal Reserve has yet to learn the hard lessons of the 1970s inflation that when growth of the money supply slows, so does the increase in prices.

Considering the rapid increase in inflation, it should lead to a major reform in the capital gains tax but it won’t considering Congress is home to so many fiscal illiterates.

Ohio Gov. Mike DeWine signed a bill into law that allows all teachers to conceal carry a handgun – with librarians allowed to use silencers.

German leaders of the anti-immigration party called Angela Merkel the worst Chancellor in Germany’s history – now that is saying something.

Why can’t the left comprehend that Title IX was never meant to allow male athletes to compete against female athletes?

How fortunate the nation is that Merrick Garland is not on the Supreme Court.

With unstable financial markets, and increasing crime, Democrats want you to turn in your weapons.

 The tithe at the Church of Green Energy is well over 10% and it is anything but voluntary.

Leftist fanatics find their way to university faculties, journalists, and district attorneys, while those on the right are ostracized, threatened, and fired.

The issue of Nazism was settled in 1945 when the notion of white supremacy was soundly defeated by the forces of white privilege.

Every school board in the country needs to make the U.S. Citizenship Test, administered to naturalizing immigrants, a high-school graduation requirement.

At this point, any abduction by aliens, is not an abduction, but a rescue.

The ability of children to read has become secondary to what they are allowed to read – for fear they may learn to read between the lines.

At the rate U.S. drug laws are being repealed, Hunter Biden could get indicted for not bringing enough drugs for everyone.

Perhaps the U.S. needs to expand the census to South America so that they can register in advance of arriving.

Many Democrat policy proposals are not only radical, but scientifically, economically, and numerically illiterate: Medicare for All and the Green New Deal violate the laws of economics, physics, and mathematics.

Socialism is contrary to human nature, while capitalism is the only proven economic system.

Wise decisions about how to utilize deficits start with understanding the factors that actually play into it and sadly many of our politicians don’t have a clue. Congress does not want the responsibility of governing, just the perks.

Sen. Joe Manchin, a Democrat no less, has doomed humankind by not supporting Biden’s green agenda.  And here I thought Donald Trump was humanity’s greatest villain. You need a scorecard to keep track of who the Democrats blame as the greatest nemesis of humanity each week.

Arguably, the nation’s two most existential threats are China and our national debt and Republicans need to start selling it that way.

Arizona executed its first prisoner in nearly eight years and for his last meal he requested some Kentucky Fried Chicken before kicking the bucket.

Dr. Seuss’s latest: There is Disorder at the Border by Executive Order.

A cargo plane arrived in Philadelphia from Australia with three million cans of baby formula on board.  Apparently, each can is labeled: Foster’s. Relax, it is a joke albeit a weak one. But any mother reading this can at some level certainly relate.

Have you noticed that when any leftist threaten to leave the U.S., they only mention white enclaves like Canada, Australia, and New Zealand?

Heinz Field was renamed by the Pittsburgh Steelers to Acrisure Stadium as the insurance and real-estate company acquired the naming rights for next 15 years. Granted, a good number of Steeler fans may not be able to spell or even pronounce the new name; but they will certainly ketchup sooner than later.

A recession is when your neighbor loses their job, a depression is when you lose your job and a recovery when Joe Biden and Congressional Democrats lose their jobs.

Originally posted 2022-07-28 11:03:51.