The US reneged on its promise to exchange dollars for gold in August of 1971. Dollars were still the world’s reserve currency, but nobody had any guarantee that they would remain limited and valuable.
Ladies and gentlemen, welcome to the US, the only place where logic goes to die and is buried under a tax form. President Trump, yeah, you know the guy who’s shrinking the deficit by spending less on education and more on what? Tariff cosplay? That’s like saying you lost weight by amputating your brain.
Meanwhile, his Fox-Frothing finance prophets are chanting about “growth” like it’s some kind of economic puberty. “Growth will surprise everyone!” Yeah, like herpes. Suddenly, out of nowhere, it’s everywhere and nobody wants to admit where they got it.
And then there’s Warsh, Kevin Warsh. He’s the Fed pick who thinks you can cure inflation by printing more money. That’s like trying to cure alcoholism with tequila enemas. Kevin says he can handle $10 trillion in rollover debt. Yeah buddy, that’s not a monetary policy, that’s a Cirque du Soleil act. He’s gonna juggle flaming chainsaws while riding a unicycle made out of IOUs.
And now China, oh those pesky little Chinese, they’re backing out of buying US Treasury toilet paper. I mean, if you were holding bonds backed by President Trump”s plan to fund the future with expired Chuck E. Cheese coupons, wouldn’t you walk away too?
They’re out. No more Treasuries. They’ve seen enough reruns of “America’s Next Top Sanction” to know how this ends. And they don’t want a guest spot on the next episode.
You gotta love how the Feds still pretend the dollar is the “trustworthy world reserve currency.” That’s adorable, it’s like pretending your ex still wants to get back together…while they’re on a honeymoon with someone else.
The rest of the world just noticed it’s basically Monopoly money with bloodstains and a bald eagle sticker slapped on top.
US manufacturing output growth surged higher in January. The headline S&P Global US Manufacturing Purchasing Managers' Index™ (PMI®), recorded 52.4 in January. That was up from 51.8 in December. The upturn in the PMI was driven in particular by a faster rate of output growth: factory production reportedly grew at the fastest rate since last August, which had in turn been the best performance since May 2022.
After WW2, British Merchant Banking was on its knees. Virtually all the gold and foreign currency reserves had gone to the USA and they had no foreign currency deposits which would allow them to write foreign loans. But a savior was at hand - Josef Stalin.
Stalin had started to earn a lot of foreign currency by selling raw materials and needed a place to deposit it. New York? No way! The Americans might steal it. London? That`s more like it. The Brits would never dare...
So, the British banks got going again, but they never seem to have given their benefactor any credit....
The current fiscal policy under Trump, which includes significant tax cuts and increased tariffs, has led to substantial revenue growth and job creation.
But it also raises concerns about long-term deficits and economic sustainability.
-
Kudlow and other conservatives are stating it is possible to "grow" us out of debt...
-
The debt does not have to be paid to zero, only reduced.
very fair article, Bill. I'm fine with Trump critique. It just needs to be stated in a reasonable way and not looked on like history started with Donald Trump!
Not sure what software was used to make the Sankey diagram of the US Surplus/Deficits, but it is exaggerating the size of the massive deficit that does not need to be exaggerated! If you align the bottom of the total $1.785 billion of receipts on the left side to the Total Outlay side and add up the outlays to that point, it corresponds to approximately $1.36 billion of outlays? 1.785 billion should go completely below National Defense and about a third of the way into Health if I'm reading this correctly.
Ladies and gentlemen, welcome to the US, the only place where logic goes to die and is buried under a tax form. President Trump, yeah, you know the guy who’s shrinking the deficit by spending less on education and more on what? Tariff cosplay? That’s like saying you lost weight by amputating your brain.
Meanwhile, his Fox-Frothing finance prophets are chanting about “growth” like it’s some kind of economic puberty. “Growth will surprise everyone!” Yeah, like herpes. Suddenly, out of nowhere, it’s everywhere and nobody wants to admit where they got it.
And then there’s Warsh, Kevin Warsh. He’s the Fed pick who thinks you can cure inflation by printing more money. That’s like trying to cure alcoholism with tequila enemas. Kevin says he can handle $10 trillion in rollover debt. Yeah buddy, that’s not a monetary policy, that’s a Cirque du Soleil act. He’s gonna juggle flaming chainsaws while riding a unicycle made out of IOUs.
And now China, oh those pesky little Chinese, they’re backing out of buying US Treasury toilet paper. I mean, if you were holding bonds backed by President Trump”s plan to fund the future with expired Chuck E. Cheese coupons, wouldn’t you walk away too?
They’re out. No more Treasuries. They’ve seen enough reruns of “America’s Next Top Sanction” to know how this ends. And they don’t want a guest spot on the next episode.
You gotta love how the Feds still pretend the dollar is the “trustworthy world reserve currency.” That’s adorable, it’s like pretending your ex still wants to get back together…while they’re on a honeymoon with someone else.
The rest of the world just noticed it’s basically Monopoly money with bloodstains and a bald eagle sticker slapped on top.
Mr. Solomon...
It appears you don't do any manufacturing.
The tariffs are working.
-
From: S&P Global:
US manufacturing output growth surged higher in January. The headline S&P Global US Manufacturing Purchasing Managers' Index™ (PMI®), recorded 52.4 in January. That was up from 51.8 in December. The upturn in the PMI was driven in particular by a faster rate of output growth: factory production reportedly grew at the fastest rate since last August, which had in turn been the best performance since May 2022.
After WW2, British Merchant Banking was on its knees. Virtually all the gold and foreign currency reserves had gone to the USA and they had no foreign currency deposits which would allow them to write foreign loans. But a savior was at hand - Josef Stalin.
Stalin had started to earn a lot of foreign currency by selling raw materials and needed a place to deposit it. New York? No way! The Americans might steal it. London? That`s more like it. The Brits would never dare...
So, the British banks got going again, but they never seem to have given their benefactor any credit....
From "Search Assist" Ai:
The current fiscal policy under Trump, which includes significant tax cuts and increased tariffs, has led to substantial revenue growth and job creation.
But it also raises concerns about long-term deficits and economic sustainability.
-
Kudlow and other conservatives are stating it is possible to "grow" us out of debt...
-
The debt does not have to be paid to zero, only reduced.
I like the jobs report that says ~42,000 government jobs were cut and ~170,000 private sector jobs were added.
...isn't it great!
-
Money shows, investment regulars and Wall St reporting include a lot of political bias.
For example:
Ms NOW reporting- this massive downsizing wave, reporting that January recorded 108,435 job eliminations from U.S. employers.
-
If you want positive economic reporting tune into Charles Payne "Making Money"
very fair article, Bill. I'm fine with Trump critique. It just needs to be stated in a reasonable way and not looked on like history started with Donald Trump!
Not sure what software was used to make the Sankey diagram of the US Surplus/Deficits, but it is exaggerating the size of the massive deficit that does not need to be exaggerated! If you align the bottom of the total $1.785 billion of receipts on the left side to the Total Outlay side and add up the outlays to that point, it corresponds to approximately $1.36 billion of outlays? 1.785 billion should go completely below National Defense and about a third of the way into Health if I'm reading this correctly.
"The Roosevelt Administration had cut off Japan from US exports, which — arguably — led to the bombing of Pearl Harbor."
Heh - nice hedge, Bill.