Warren to the Rescue
Those who loaded $36 trillion of debt onto the backs of Americans now promise to make them rich by taxing foreigners. Those who squandered enough money to build every family in America a new home.
Wednesday, January 22nd, 2025
Bill Bonner, writing from Baltimore, Maryland
Suddenly, everybody is on board. ‘Ready to work with’ Donald Trump. Democrats. Republicans. Tech bros. Hollywood stars. Everyone.
All of those who rigged-up the economy now say they are ready to de-rig it. Those who spent money as if they had robbed it from a bank now seek ‘efficiencies.’
Those who loaded $36 trillion of debt onto the backs of Americans now promise to make them rich by taxing foreigners. Those who squandered enough money to build every family in America a new home...
Yes, they voted for every cockamamie boondoggle to slime its way through Congress...
... spending authorizations that ran to more than 1,000 pages, that they didn’t read...
... payoffs to powerful lobbies... bribes to voters... billions...trillions...in unnecessary, wasteful spending...
... debt that went up year after year...as the jackass programs multiplied.
And now, those same people are signing up to reform the system. They are ready to dig into the rules, regulations and spending programs that they themselves put in place... and tear out those that slow down the economy and put unnecessary burdens on our ‘working families.’
‘The decline is over,’ says the man in the Oval Office. To his credit, Mr. Trump is leading the chorus. (The man is not all bad!) The Washington Post:
Trump embarks on vast effort to revoke federal regulations.
But not everyone is on-key.
One voice, in particular, like a clanging gong — with a note so shrill and false it makes deafness a virtue is that of Senator Elizabeth Warren.
The Wall Street Journal:
Elizabeth Warren: If Trump Wants to Unrig the Economy, I’m In
I will lead Democrats on the Banking Committee to lower costs, advance security and cut red tape. I’m ready to work with Chairman Tim Scott, Donald Trump and business leaders whenever they support policies that rebuild the middle class, advance our economic and national security, and fight the corruption of those who seek to use government to enrich themselves.
What has she been doing for the last eleven years in the US Senate?
Rigging up the economy, of course. Spending money the feds don’t have. Causing investors to wonder what their collateral is really worth. The result?
“Mortgage rates surpass 7% in new blow to home market,” says the Wall Street Journal.
Houses have never been so unaffordable. Prices are high. Interest rates are high. And average earnings, for the people who buy them, are low.
An emergency!
If this keeps up, soon millions of American families will suffer from homelessness. Or, housing prices will fall.
Ms. Warren claims that capitalism can’t do the job. She wants to improve it. Nation of Change:
Elizabeth Warren’s Accountable Capitalism Act: A push for corporate accountability and worker rights
But capitalism is not to blame for the high price of housing. Capitalism responds to whatever circumstances it encounters. And when it runs into zoning regulation and building codes... interest rate manipulation... high taxes... and inflation — all imposed by the feds — it adjusts as best it can. It builds houses for rich people — because they can afford to buy them. Poor people are ‘priced out’ of the market.
But Ms. Warren is determined to make the situation worse. The Worcester Telegram & Gazette:
Elizabeth Warren unveils bill that would spend half a trillion dollars to build housing
Massachusetts Sen. Elizabeth Warren announced the bill that could boost housing production in the U.S., funding some 3 million units…. The bill would revise the federal estate tax for the nation's wealthiest residents to off-set the cost to the federal government, and is expected to generate billions.
The plan would allocate resources to state and local governments, and grassroots and community organizations, and is designed to tackle local housing needs by funding creative local approaches and solutions.
Yep.
Spend more money.
That ought to do it.
Always worked in the past.
Regards,
Bill Bonner
Got good news this morning that Bill should approve of. Trump is getting rid of government DEI counselors. Biden padded his employment numbers by expanding the Fed govt on the backs of tax payers with no benefit.
Entirely fair commentary Bill. Politicos, masters of finance and CEO's would I'm sure not approve as their game is one of confidence not reality.
I've put my money on reality having its way eventually and am simply amused by all the ding dongs that think you can build a growth machine on a foundation made with nothing but debt. What a circus... until the "government" is removed from constantly interfering in our economy, our markets, our lives we will continue to suffer an endless stream of fools.