This is a sad fact, but even if it's sad, it's still a fact.
Now comes opinion: BAD GOVERNMENT IS WORSE THAN NO GOVERNMENT.
I'm 70. I have experienced nothing but marginally functional to horrible government my whole life.
Now comes a suggestion: WE NEED A RESTART.
"It became necessary to destroy the village in order to save it." Don't raise the spending limit; FIRE THE FEDERAL GOVERNMENT. Overnight. Anybody or anything receiving a paycheck from the "government", i.e. from you and me, NO LONGER HAS A JOB. That's right, GONE, FINIS, KAPUTT.
LIve off of local and state government while we rebuild the federal government IN STRICT ACCORDANCE with the CONSTITUTION! What a novel idea.
If we keep on going, the default of the country is going to have a similar effect but without any brakes or control. I say we, the people, do our goddam job for once. Best always. PM
It would be great if we returned to a federal government operating in accordance with the Constitution! There is a movement afoot now to convene a convention of states to "fix" the Constitution as specified in the Constitution. I believe that several states have signed on to participate, but they still lack the required number of states needed to agree. My worry is that there are no rules on how to proceed with this convention, and the people involved want to make changes that will make the federal government even worst than it is now and erode our liberties, such as deleting the 2nd Amendment.
I have looked deeply into the Great Hope of the Convention of States and have come to the unmistakable conclusion that it is just one more carrot to keep the real Patriots from taking the hard actions we should have taken 20 years ago. The most desirable outcomes one could imagine from a "successful" Convention fall far short of what is required to fix things, and that is in a best case scenario. Further, go ahead and change the Constitution - what makes you think the left and dimocrats are going to magically adhere to the best we can come up with?
No my friend, they will continue to completely ignore the parts of a "new" Constitution they don't agree with, just as they currently ignore the "inconvenient" parts of the Constitution we have.
The whole exercise is a distraction and diverts essential Conservative efforts toward something that will be worthless if we can eventually "get what we want."
We've crossed the rubicon IMO. Quickly now, burn it all down and let's start building it back properly, in accordance with the founding documents and NO INPUT ALLOWED from the communists in drag that infest our "government", society, Military, Corporations, Universities, "media", etc.
You are right. Our government operates out of the bounds and authority allowed it by the Constitution. Only a few things need to be fixed. Repeal the amendments about income tax and popular election of senators (#16 and #17), and include the Federal govt in the ban on creating money (in addition to states).
Paul. I am with you. I want this bankrupt government to stop all transfer payments. Social Security, pensions, welfare, unemployment, the FDIC, etc. etc. etc. Then we can truly start a new government. Millions will die but it might be a blessing as a non-workers will be weeded out.
A quote from the late 1700's: “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years." ― Alexander Fraser Tytler
The government steals your wallet, then volunteers to help you find it. They break everything they touch and then develop a long term program to fix it, which never works and costs 5 times more than they said it would. This is going to end one way or the other. Whether we still have the cojones and persistence as a nation to stop our own suicide is debatable. Recent evidence is not encouraging. The ruling class has been bought off and cannot be relied upon except to do more damage.
With one in six workers employed by a government -- local, state, Federal -- a small step for man; a giant leap for mankind would be to change this ratio so more workers are engaged in wealth-making; less in wealth-taking.
"The experience of Argentina shows us that once the masses get hooked on free stuff (transfer payments), inflation is almost impossible to stop. Practically everyone comes to believe that whatever terrible damage inflation inflicts… politically, deflation is worse."
That right there is the heart of the matter. Maybe. The response you'll always get is: 'Yes, but the dollar is the world's reserve currency, and we have the printing press for the dollar.'
But, of course, that was true for the British pound until it wasn't. It was true for the Roman denarius until it wasn't. And it will be true for the USA until it isn't. Whether we're at that inflection point now is the question. But, what is certain, is that we will be at that inflection point eventually.
I have appreciation and admiration for the thought and consideration you have put into your analysis. We are at the end of our run and must face the music, just as others in history have done. We are compatriots and on the same side. Still, you can have your inflection point. I want a TURNING point. Better still a RESTART. Best always. PM
I am there with you. I recently moved my family to another state. I've built a house in another country. I own a business and still go to work every day. But, I'm prepared for an inflection point, a restart, or for whatever comes next, as best as I can be. Things are beyond repair, in my view.
It's always hard to see that when you're in it; easy to see looking back.
But, if you pay a little attention, you can sense it -- like the dotcom bust in 2001 when everyone was clamoring to be "let in" to the next IPO, or the property market implosion in 2006 when all your neighbors were "flippers" and mortgage processors specialized in "liar" no-income loans. You may not know when. But, you know it can't go on like this. We're at that point, in my view.
Agree 100%. In fact, I would say we are PAST the point. If I had to pin a date to it, I would go with 01APR22 - the day TraitorJoe announced his "sanction package" that would "cripple" Russia.
Most of the requirements to remove the USD as the World Reserve Currency were already in place. Gutless Joe and his disgusting band of domestic enemies just applied the final push to send the whole band wagon over the cliff. Mission Accomplished at the behest of their TRUE owners - the CCP...
Exactly. How long can the central bankers keep the party going? This is the most important Q facing the U.S. over the next few years. And from a nearer-term political perspective, can they help their Dem allies keep the White House in 2024? I don’t think the globalists care if they lose the U.S. Senate, which appears quite possible with almost certain losses in Ohio and Montana, and possibly four more in WV, WI, AZ, & NV. They want that southern border open for the third-world invasion, and the new energy nonsense, to continue, which a GOP Congress would have difficulty completely stopping. But can the Fed continue to prop up and pacify millions of suburbanites, principally in purple states, through Sept.-Nov. 2024, who will decide the 2024 presidential election via the Electoral College? I think the Fed will raise the short-term rate one-quarter point to 5.00%-5.25% in May, but I’m not sure they will cut it in July. That leaves a whopping 13.5 months until Sept. 2024 when Americans start voting. How do they know if they start cutting rates to provide a (phony) boost to the economy, that inflation won't get out of hand in 13.5 months, jolting out of their stupor the pacified suburbanites who decide elections, and who usually vote for the incumbent when they're in a pacified state? So I think the Fed has a somewhat difficult political decision to make (and it’s always political with the Fed and their Dem allies---don’t kid yourself) about the timing of the cuts, how much they cut each time, and how long they continue cutting. I definitely see them cutting rates for political reasons. Forget any other considerations that might actually help the U.S.
You, my friend, are more hopeful than I am. That may sound hard to believe. I've been saying since 2016 that we saw our last free and fair election that year. I maintain that position. It's the last time those in power will allow citizens to elect the wrong person.
I don't believe anything the Fed does will affect the results of any future presidential election. Oh, they'll allow some enemy victories around the margins, this Senate race or that House race. You have to keep folks believing there's some semblance of legitimacy. But, no consequential election will ever again be decided by any fair process. The forces arrayed against the electorate are just too powerful.
That's not a red tribe vs. blue tribe statement, either. In my view, that's too facile an impression (and, in part, it's what those who truly pull the strings want). It's the powerful and entrenched vs. the rest of us. I hope I'm wrong and you are right.
> Why did Zimbabwe, Germany, Venezuela…et al…let inflation go to over a million percent?
As far as Germany is concerned, you certainly know why. Otherwise read the "treaty" of Versailles. The USA, the permanent enemy of Germany, was part of the "deal". Even now, the war against Russia is as well a war against Germany. Ask Mr. J. Rickards, whom you know better than I do.
The Uniparty can care less about America's future. It's all about enriching themselves in the here and now. The ECB Hack (President), Christine Largarde, is already capitulating on the 2% inflation target. You'll soon see this movie here in America. I'd love to see a hard default, but this is just wishful thinking. The only way out is secession. When this process starts you best embrace it like your life, liberty, and financial independence depends on it :-)
"The U.S. government risks “economic and financial catastrophe” if the House fails to pass a bill to raise the $31.4 trillion debt ceiling, Treasury Secretary Janet Yellen said …". And what would the FED do if this happens? Would Powell and his cronies go into "panic mode" and slash the interest rate back toward zero, and pump tons of money into the economy to stave off a deep recession? This is what I think would happen. The inflation rate in future years would be much higher. We would have "fond memories" of the time when the inflation rate was only 5 to 6%! My two cents...
The Fed wouldn’t be able to pump tons of money into the economy because the mechanism it uses to do that is buying Treasury debt. If the Treasury can’t issue debt because of the debt ceiling, the Fed has no way to put money in.
I believe that the FED could buy Treasury bills and bonds held by private banks using printed money via open market purchases. The banks may be anxious to reduce the amount of Treasury debt that they hold since the government is in default. The banks would then lend out the cash infusion from the Treasury debt sales to the FED to earn interest, thus increasing the money supply in the economy..
By “open market purchases” do you mean at the market price, or the face value of the bonds? The Fed already has over $8 trillion of Treasury debt on its balance sheet and has actually increased it, probably by doing what you suggest, since the SVB collapse.
Sorry to say, but the average person thinks inflation is normal and natural. And the "experts" say 2% inflation is healthy. Bill has ridiculed that numerous times. But my father rode the streetcar for a nickel, I bought postage stamps when I was little for 6 cents apiece. A relative of mine owned a house 30 years and sold it for about 13 times what they paid.
And soon, with the push toward EV we won't be able to afford a car.
TS: It should be the opposite. The EV's will save you all the money you spend on maintenance and gas/oil. The electricity won't cost you half as much than the gas/oil you would use.
If EVs would save us money, the government wouldn't have to mandate laws that encourage it. The auto companies would be running to it on their own. We don't have electric capacity to charge the batteries; the raw materials (metals) needed for batteries and electric cars are much more scarce than fossil fuels. In order to meet fuel efficiency standards, manufacturers are forced to sacrifice safety, durability, and low prices. We are giving up our way of life, for a myth that it will benefit the climate and environment.
Trapped: You are welcome to your opinion. What safety, durability, and low prices are you referring to? Why are we giving up our way of life for a myth that it will benefit the climate and environment? I have had my EV for over 2 years now and have taken several long trips and, quiet frankly, getting stuck behind some gas vehicles wasn't too pleasant with their emissions I had to endure. The destruction of emissions from Gas cars over the years has taken a toll on our climate and environment and you should know that!
I have to differ about EV's: there is no savings to be had now or in the future. The electric grid is hanging by a thread [bitcoin mining has exhausted it and w/ a hot, hot summer we are all in jeopardy]. Furthermore, the charging stations infrastructure is a major expenditure; and, is not in place. Now add that metals needed for batteries must come from countries that we have alienated; and could be disrupted. Then there is the fact the 'things' are much heavier on substandard roadways; and, I cannot conceive of EV's saving anyone any money.
Excellent points. Unfortunately - while sweet Dorothy appears to be a truly nice kittle old lady, she bleeds libtarde and is immune to facts, common sense and Reality...
SE:T: Thanks for your support! The batteries that Tesla ( not sure about all the other EV companies) will not be using some of the materials i.e., Lithium in their batteries and what counties does Tormntos think we need other metals that don't come from alienated countries. Australia is big producer of lithium which Tesla will be using for a little while longer. By the way, how heavy are the trucks that are driving on our streets and highways?
How about anywhere from 25,000 to 35,000 pounds or more, depending on the cargo they are carrying. (80K is the maximum}. Shall we stop them to satisfy you both? Also, I don't appreciate being called a nice Kittle old lady. Maybe you are an old man but I'm not an Old woman.
Hello, mister Tormento’s. She is a nice gal, but thoroughly diluted on electric cars. She has not a clue as to Thermo dynamics. She only knows what she heard on CNN. Having said that in the ballot box, people like her or dangerous.
WFE: Maybe you should read more current info. I think it's interesting that you think I watch CNN. I do watch it from time to time and I have never heard them talking about EV's. It doesn't seem to be their thing. It's better than watching Fox news, which I don't. I like PBS and some of the local news stations. Also, I have been driving my Tesla for two years now and absolutely love it. Getting around 380 to 390 miles is not bad from one charge. That's what I got recently on my recent trip. Just keep driving your gas guzzler if it makes you happy!
Sorry for the same message twice. As you can see I like the word "recently" so much, that I put it in twice. Recently and recent. Too much kool-Aid. Got to watch that.
Thanks for responding. We are $31 trillion in debt, 10 times more than in 2000. Has our population grown 10 times? And the stock market is 5 times (roughly) greater than 2008. Has our population grown 5 times?
I’m not saying that the amount it has inflated over the past 25 years is correct, only that some increase in the money supply is necessary with an expanding population, otherwise, you’ll have deflation which is much worse than small inflation.
Discomfort now or disaster later? As long as the majority of voters (and thus politicians) opt for disaster later, they will get what they vote for, and as Bill has noted multiple times, they will get it good and hard. Of course, those of us who vote for discomfort now will also get roped into the disaster later, but perhaps we can take some steps personally to protect ourselves. I'm trying to do so.
Of course it's the disaster later option - and it's why all fiat currency eventually becomes worthless, because we are still the same human beings that debased all the others and for pretty much the same reasons. We have learnt nothing and, sadly, will probably ALL get it good and hard in the end. No pun intended
Hello All, I always love reading Bills daily (And of course your comments). I'm curious, all of a sudden I am not getting this in my daily email. Did I miss something about a change? Sorry, not finding another effective place to put the question.... Best regards
From an engineering perspective, the sequence is simple. Tax to the possible limits, then borrow to the limits of criticism and the sequence terminates with the outright theft of purchasing power by inflation. We do not have to worry about "DEFAULT". All major holders of US debt recognize that inflation is a default on the return of borrowed purchasing power.
As if NOT fighting inflation is an option ... because if it was ... there is no problem.
We could simply kick down the road forever.
But at some point I believe the ‘Makers’ (BRICS)
will demand payment from the ‘Takers’ (WEST) in real money (Gold). Then and only then will the looming inflation catastrophe be resolved ... one way or the other.
From todays Jim Bonner narrative: when more than half the voters rely on free stuff, ‘Stop the Spending” is not a campaign bumper sticker you are likely to see. And the party that calls for a Balanced Budget is not likely to be the one calling the shots.
Politics and economics do not mix well. Economics is a science where two plus two is never six while politics is like an illusion. The politicians most with law degrees know that words spit out at a speed of a bullet make science look like a child’s game. Salesmanship is what America thrives on.
Corporations spend billions on advertising because the nation responds. Candidates spend billions because the nation responds. When advertising folds Google crawls under the covers.
It all comes from ignorance and ignorance thrives in America. Ignorance is everywhere where people are but here in America it is exploited to the benefit of a few. The subject Marketing was coined in America and that does not require further comments.
I define politics as: “anti-Economics”. All government programs violate Economic principles because, if they didn’t, there would be no need for the program, the economy would solve the problem itself.
ALL GOVERNMENT EVENTUALLY GOES BAD.
This is a sad fact, but even if it's sad, it's still a fact.
Now comes opinion: BAD GOVERNMENT IS WORSE THAN NO GOVERNMENT.
I'm 70. I have experienced nothing but marginally functional to horrible government my whole life.
Now comes a suggestion: WE NEED A RESTART.
"It became necessary to destroy the village in order to save it." Don't raise the spending limit; FIRE THE FEDERAL GOVERNMENT. Overnight. Anybody or anything receiving a paycheck from the "government", i.e. from you and me, NO LONGER HAS A JOB. That's right, GONE, FINIS, KAPUTT.
LIve off of local and state government while we rebuild the federal government IN STRICT ACCORDANCE with the CONSTITUTION! What a novel idea.
If we keep on going, the default of the country is going to have a similar effect but without any brakes or control. I say we, the people, do our goddam job for once. Best always. PM
It would be great if we returned to a federal government operating in accordance with the Constitution! There is a movement afoot now to convene a convention of states to "fix" the Constitution as specified in the Constitution. I believe that several states have signed on to participate, but they still lack the required number of states needed to agree. My worry is that there are no rules on how to proceed with this convention, and the people involved want to make changes that will make the federal government even worst than it is now and erode our liberties, such as deleting the 2nd Amendment.
Hi Tim -
I have looked deeply into the Great Hope of the Convention of States and have come to the unmistakable conclusion that it is just one more carrot to keep the real Patriots from taking the hard actions we should have taken 20 years ago. The most desirable outcomes one could imagine from a "successful" Convention fall far short of what is required to fix things, and that is in a best case scenario. Further, go ahead and change the Constitution - what makes you think the left and dimocrats are going to magically adhere to the best we can come up with?
No my friend, they will continue to completely ignore the parts of a "new" Constitution they don't agree with, just as they currently ignore the "inconvenient" parts of the Constitution we have.
The whole exercise is a distraction and diverts essential Conservative efforts toward something that will be worthless if we can eventually "get what we want."
We've crossed the rubicon IMO. Quickly now, burn it all down and let's start building it back properly, in accordance with the founding documents and NO INPUT ALLOWED from the communists in drag that infest our "government", society, Military, Corporations, Universities, "media", etc.
𝗡𝗼 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗶𝗻 𝘁𝗵𝗲 "𝗗𝗲𝗯𝘁 𝗖𝗲𝗶𝗹𝗶𝗻𝗴" 𝗮𝗻𝗱 𝗹𝗲𝘁 𝘁𝗵𝗲 𝗱𝗲𝗳𝗮𝘂𝗹𝘁𝗶𝗻𝗴 𝗯𝗲𝗴𝗶𝗻...
You are right. Our government operates out of the bounds and authority allowed it by the Constitution. Only a few things need to be fixed. Repeal the amendments about income tax and popular election of senators (#16 and #17), and include the Federal govt in the ban on creating money (in addition to states).
PM: AMEN!
Paul. I am with you. I want this bankrupt government to stop all transfer payments. Social Security, pensions, welfare, unemployment, the FDIC, etc. etc. etc. Then we can truly start a new government. Millions will die but it might be a blessing as a non-workers will be weeded out.
A quote from the late 1700's: “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years." ― Alexander Fraser Tytler
The government steals your wallet, then volunteers to help you find it. They break everything they touch and then develop a long term program to fix it, which never works and costs 5 times more than they said it would. This is going to end one way or the other. Whether we still have the cojones and persistence as a nation to stop our own suicide is debatable. Recent evidence is not encouraging. The ruling class has been bought off and cannot be relied upon except to do more damage.
With one in six workers employed by a government -- local, state, Federal -- a small step for man; a giant leap for mankind would be to change this ratio so more workers are engaged in wealth-making; less in wealth-taking.
Go ahead and default on the debt ceiling. WE THE PEOPLE want to put The Federal Government out of it’s misery!
It’s broken.
"The experience of Argentina shows us that once the masses get hooked on free stuff (transfer payments), inflation is almost impossible to stop. Practically everyone comes to believe that whatever terrible damage inflation inflicts… politically, deflation is worse."
That right there is the heart of the matter. Maybe. The response you'll always get is: 'Yes, but the dollar is the world's reserve currency, and we have the printing press for the dollar.'
But, of course, that was true for the British pound until it wasn't. It was true for the Roman denarius until it wasn't. And it will be true for the USA until it isn't. Whether we're at that inflection point now is the question. But, what is certain, is that we will be at that inflection point eventually.
I have appreciation and admiration for the thought and consideration you have put into your analysis. We are at the end of our run and must face the music, just as others in history have done. We are compatriots and on the same side. Still, you can have your inflection point. I want a TURNING point. Better still a RESTART. Best always. PM
I am there with you. I recently moved my family to another state. I've built a house in another country. I own a business and still go to work every day. But, I'm prepared for an inflection point, a restart, or for whatever comes next, as best as I can be. Things are beyond repair, in my view.
It's always hard to see that when you're in it; easy to see looking back.
But, if you pay a little attention, you can sense it -- like the dotcom bust in 2001 when everyone was clamoring to be "let in" to the next IPO, or the property market implosion in 2006 when all your neighbors were "flippers" and mortgage processors specialized in "liar" no-income loans. You may not know when. But, you know it can't go on like this. We're at that point, in my view.
Hi Laramie -
Agree 100%. In fact, I would say we are PAST the point. If I had to pin a date to it, I would go with 01APR22 - the day TraitorJoe announced his "sanction package" that would "cripple" Russia.
Most of the requirements to remove the USD as the World Reserve Currency were already in place. Gutless Joe and his disgusting band of domestic enemies just applied the final push to send the whole band wagon over the cliff. Mission Accomplished at the behest of their TRUE owners - the CCP...
Exactly. How long can the central bankers keep the party going? This is the most important Q facing the U.S. over the next few years. And from a nearer-term political perspective, can they help their Dem allies keep the White House in 2024? I don’t think the globalists care if they lose the U.S. Senate, which appears quite possible with almost certain losses in Ohio and Montana, and possibly four more in WV, WI, AZ, & NV. They want that southern border open for the third-world invasion, and the new energy nonsense, to continue, which a GOP Congress would have difficulty completely stopping. But can the Fed continue to prop up and pacify millions of suburbanites, principally in purple states, through Sept.-Nov. 2024, who will decide the 2024 presidential election via the Electoral College? I think the Fed will raise the short-term rate one-quarter point to 5.00%-5.25% in May, but I’m not sure they will cut it in July. That leaves a whopping 13.5 months until Sept. 2024 when Americans start voting. How do they know if they start cutting rates to provide a (phony) boost to the economy, that inflation won't get out of hand in 13.5 months, jolting out of their stupor the pacified suburbanites who decide elections, and who usually vote for the incumbent when they're in a pacified state? So I think the Fed has a somewhat difficult political decision to make (and it’s always political with the Fed and their Dem allies---don’t kid yourself) about the timing of the cuts, how much they cut each time, and how long they continue cutting. I definitely see them cutting rates for political reasons. Forget any other considerations that might actually help the U.S.
You, my friend, are more hopeful than I am. That may sound hard to believe. I've been saying since 2016 that we saw our last free and fair election that year. I maintain that position. It's the last time those in power will allow citizens to elect the wrong person.
I don't believe anything the Fed does will affect the results of any future presidential election. Oh, they'll allow some enemy victories around the margins, this Senate race or that House race. You have to keep folks believing there's some semblance of legitimacy. But, no consequential election will ever again be decided by any fair process. The forces arrayed against the electorate are just too powerful.
That's not a red tribe vs. blue tribe statement, either. In my view, that's too facile an impression (and, in part, it's what those who truly pull the strings want). It's the powerful and entrenched vs. the rest of us. I hope I'm wrong and you are right.
Mr. Laramie. There is no hope at the ballot box. The hope is the greater depression.
They saw the debt problem and 08 with more debt. You knew from that day on this problem had to come back. And here it is.
Mr. Laramie. I hope it’s now.
Lazee Bobbee
Hope Grammaw Yellin' bites the bullet and gifts me her last stimmie check. M' birthday comin' up.
> Why did Zimbabwe, Germany, Venezuela…et al…let inflation go to over a million percent?
As far as Germany is concerned, you certainly know why. Otherwise read the "treaty" of Versailles. The USA, the permanent enemy of Germany, was part of the "deal". Even now, the war against Russia is as well a war against Germany. Ask Mr. J. Rickards, whom you know better than I do.
Regards
K.A.
The Uniparty can care less about America's future. It's all about enriching themselves in the here and now. The ECB Hack (President), Christine Largarde, is already capitulating on the 2% inflation target. You'll soon see this movie here in America. I'd love to see a hard default, but this is just wishful thinking. The only way out is secession. When this process starts you best embrace it like your life, liberty, and financial independence depends on it :-)
^^^1000%^^^
Craig I would love it.
"The U.S. government risks “economic and financial catastrophe” if the House fails to pass a bill to raise the $31.4 trillion debt ceiling, Treasury Secretary Janet Yellen said …". And what would the FED do if this happens? Would Powell and his cronies go into "panic mode" and slash the interest rate back toward zero, and pump tons of money into the economy to stave off a deep recession? This is what I think would happen. The inflation rate in future years would be much higher. We would have "fond memories" of the time when the inflation rate was only 5 to 6%! My two cents...
The Fed wouldn’t be able to pump tons of money into the economy because the mechanism it uses to do that is buying Treasury debt. If the Treasury can’t issue debt because of the debt ceiling, the Fed has no way to put money in.
I believe that the FED could buy Treasury bills and bonds held by private banks using printed money via open market purchases. The banks may be anxious to reduce the amount of Treasury debt that they hold since the government is in default. The banks would then lend out the cash infusion from the Treasury debt sales to the FED to earn interest, thus increasing the money supply in the economy..
By “open market purchases” do you mean at the market price, or the face value of the bonds? The Fed already has over $8 trillion of Treasury debt on its balance sheet and has actually increased it, probably by doing what you suggest, since the SVB collapse.
Market price.
Slick.
So many ways to separate the epidermis from the feline...
Sorry to say, but the average person thinks inflation is normal and natural. And the "experts" say 2% inflation is healthy. Bill has ridiculed that numerous times. But my father rode the streetcar for a nickel, I bought postage stamps when I was little for 6 cents apiece. A relative of mine owned a house 30 years and sold it for about 13 times what they paid.
And soon, with the push toward EV we won't be able to afford a car.
TS: It should be the opposite. The EV's will save you all the money you spend on maintenance and gas/oil. The electricity won't cost you half as much than the gas/oil you would use.
Thank you for your response to my post.
If EVs would save us money, the government wouldn't have to mandate laws that encourage it. The auto companies would be running to it on their own. We don't have electric capacity to charge the batteries; the raw materials (metals) needed for batteries and electric cars are much more scarce than fossil fuels. In order to meet fuel efficiency standards, manufacturers are forced to sacrifice safety, durability, and low prices. We are giving up our way of life, for a myth that it will benefit the climate and environment.
Mr. trapped. Can you imagine trying to make a tractor trailer drive with the EV? I read they run about three hours and then take 10 hours to charge.
Trapped: You are welcome to your opinion. What safety, durability, and low prices are you referring to? Why are we giving up our way of life for a myth that it will benefit the climate and environment? I have had my EV for over 2 years now and have taken several long trips and, quiet frankly, getting stuck behind some gas vehicles wasn't too pleasant with their emissions I had to endure. The destruction of emissions from Gas cars over the years has taken a toll on our climate and environment and you should know that!
I have to differ about EV's: there is no savings to be had now or in the future. The electric grid is hanging by a thread [bitcoin mining has exhausted it and w/ a hot, hot summer we are all in jeopardy]. Furthermore, the charging stations infrastructure is a major expenditure; and, is not in place. Now add that metals needed for batteries must come from countries that we have alienated; and could be disrupted. Then there is the fact the 'things' are much heavier on substandard roadways; and, I cannot conceive of EV's saving anyone any money.
Hi Torm -
Excellent points. Unfortunately - while sweet Dorothy appears to be a truly nice kittle old lady, she bleeds libtarde and is immune to facts, common sense and Reality...
SE:T: Thanks for your support! The batteries that Tesla ( not sure about all the other EV companies) will not be using some of the materials i.e., Lithium in their batteries and what counties does Tormntos think we need other metals that don't come from alienated countries. Australia is big producer of lithium which Tesla will be using for a little while longer. By the way, how heavy are the trucks that are driving on our streets and highways?
How about anywhere from 25,000 to 35,000 pounds or more, depending on the cargo they are carrying. (80K is the maximum}. Shall we stop them to satisfy you both? Also, I don't appreciate being called a nice Kittle old lady. Maybe you are an old man but I'm not an Old woman.
Continued SE: And certainly not a bleeding libtarde and is immune to facts, common sense and Reality. This Sounds a lot like you.
Hello, mister Tormento’s. She is a nice gal, but thoroughly diluted on electric cars. She has not a clue as to Thermo dynamics. She only knows what she heard on CNN. Having said that in the ballot box, people like her or dangerous.
WFE: Maybe you should read more current info. I think it's interesting that you think I watch CNN. I do watch it from time to time and I have never heard them talking about EV's. It doesn't seem to be their thing. It's better than watching Fox news, which I don't. I like PBS and some of the local news stations. Also, I have been driving my Tesla for two years now and absolutely love it. Getting around 380 to 390 miles is not bad from one charge. That's what I got recently on my recent trip. Just keep driving your gas guzzler if it makes you happy!
Sorry for the same message twice. As you can see I like the word "recently" so much, that I put it in twice. Recently and recent. Too much kool-Aid. Got to watch that.
Bonner Research: Why are you putting my replays in twice. I thought it was me but it's happening again?
Thank you for context....WF
Miz Dorothy - You've been drinking that Kool-Aid.
M: Try it, you might like it.
Wow.
You got it BAD Dottie...
SE: I could say the same about you!
As long as the population keeps inflating, the money supply must follow suit.
Thanks for responding. We are $31 trillion in debt, 10 times more than in 2000. Has our population grown 10 times? And the stock market is 5 times (roughly) greater than 2008. Has our population grown 5 times?
Mr. Trapp. Some people must defend the status quo. Statists
I’m not saying that the amount it has inflated over the past 25 years is correct, only that some increase in the money supply is necessary with an expanding population, otherwise, you’ll have deflation which is much worse than small inflation.
Discomfort now or disaster later? As long as the majority of voters (and thus politicians) opt for disaster later, they will get what they vote for, and as Bill has noted multiple times, they will get it good and hard. Of course, those of us who vote for discomfort now will also get roped into the disaster later, but perhaps we can take some steps personally to protect ourselves. I'm trying to do so.
Of course it's the disaster later option - and it's why all fiat currency eventually becomes worthless, because we are still the same human beings that debased all the others and for pretty much the same reasons. We have learnt nothing and, sadly, will probably ALL get it good and hard in the end. No pun intended
Hello All, I always love reading Bills daily (And of course your comments). I'm curious, all of a sudden I am not getting this in my daily email. Did I miss something about a change? Sorry, not finding another effective place to put the question.... Best regards
From an engineering perspective, the sequence is simple. Tax to the possible limits, then borrow to the limits of criticism and the sequence terminates with the outright theft of purchasing power by inflation. We do not have to worry about "DEFAULT". All major holders of US debt recognize that inflation is a default on the return of borrowed purchasing power.
We have been defaulting since August 15, 1971.
As if NOT fighting inflation is an option ... because if it was ... there is no problem.
We could simply kick down the road forever.
But at some point I believe the ‘Makers’ (BRICS)
will demand payment from the ‘Takers’ (WEST) in real money (Gold). Then and only then will the looming inflation catastrophe be resolved ... one way or the other.
From todays Jim Bonner narrative: when more than half the voters rely on free stuff, ‘Stop the Spending” is not a campaign bumper sticker you are likely to see. And the party that calls for a Balanced Budget is not likely to be the one calling the shots.
Politics and economics do not mix well. Economics is a science where two plus two is never six while politics is like an illusion. The politicians most with law degrees know that words spit out at a speed of a bullet make science look like a child’s game. Salesmanship is what America thrives on.
Corporations spend billions on advertising because the nation responds. Candidates spend billions because the nation responds. When advertising folds Google crawls under the covers.
It all comes from ignorance and ignorance thrives in America. Ignorance is everywhere where people are but here in America it is exploited to the benefit of a few. The subject Marketing was coined in America and that does not require further comments.
I define politics as: “anti-Economics”. All government programs violate Economic principles because, if they didn’t, there would be no need for the program, the economy would solve the problem itself.