Markets Are Starting To Question The “Transitory” Narrative

https://www.nationandstate.com/2021/10/11/markets-are-starting-to-question-the-transitory-narrative/
Markets Are Starting To Question The “Transitory” Narrative By Ven Ram, Bloomberg Markets Live Analyst and Commentator When chess grandmasters meet, the opening moves are usually well-rehearsed. Then, when one makes a single non-standard move, the game becomes intriguing. Similarly, inflation markets were moving lock-step with the Fed’s guidance so far in the current cycle.…

House prices surge more than 20pc over the past year, CoreLogic data shows – ABC News

Comment by tonytran2015: Investing in property through companies expose the desperate young Australian investors to frauds and abuse by the management class. Investing in property by otherwise-homeowners is NO solution to the housing crisis.

https://www.abc.net.au/news/2021-10-01/home-prices-surge-more-than-20pc-over-the-past-year-corelogic/100506228

  • The national average home price jumped 20.3 per cent over the past year
  • That is the highest annual pace of growth since the year ending June 1989
  • First home buyers appear to be increasingly turning to property investment as they are priced out of homes they want to live in

Democratic Sen. Warner calls for eliminating ‘crazy’ debt ceiling tool altogether

https://www.nationandstate.com/2021/10/07/democratic-sen-warner-calls-for-eliminating-crazy-debt-ceiling-tool-altogether/
Warner compared the debt ceiling to a ‘live hand grenade’ that can be used by ‘extremists’ in both major political parties Go to Source Author: {Just The News}… Read more

Biden’s Absurd ‘Zero Cost’ Claim—$3.5 Trillion Is Real Money And It’s Coming Out Of Your Pocket | PA Pundits – International

https://papundits.wordpress.com/2021/10/02/bidens-absurd-zero-cost-claim-3-5-trillion-is-real-money-and-its-coming-out-of-your-pocket/

By David Ditch ~

Talk about a ludicrous advertising pitch! Speaking of the record-breaking tax-and-spend package currently being pushed through Congress, President Joe Biden last Friday said, “It is zero price tag on the debt. We’re going to pay for everything we spend.”

This is flatly wrong, and it isn’t even close.

President Joe Biden incorrectly claimed the $3.5 trillion spending bill will pay for itself and has no cost whatsoever.

While we don’t yet have a full accounting of the 2,465-page behemoth, it’s expected that the bill’s total amount of spending and tax credits will reach $3.5 trillion.

In contrast, the bill would increase taxes by about $2.3 trillion, leaving a gap of over $1 trillion. Democrats claim that the difference would be made up by imposing price controls on prescription drugs and through hoped-for economic growth—even though independent analysis says the bill would actually depress growth.

Yet rather than correct the record, Biden doubled down and then some.

In a tweet last Saturday, he said, “My Build Back Better Agenda costs zero dollars.”

It’s one thing to incorrectly claim that legislation pays for itself. It’s another thing to claim that possibly the most expensive piece of legislationin world history has no cost whatsoever.

Make no mistake: There is no free money. Every dollar the federal government spends must either be taken from taxpayers or borrowed.

Extra borrowing would be irresponsible. The federal debt currently stands at $28.4 trillion, or about $220,000 for every household in the country.

The problem is only getting worse, with tens of trillions in unfunded liabilities for programs like Social Security and Medicare. That’s bad for retirees and future generations alike, and Congress is refusing to address the coming crisis.

Tax hikes also have a real cost, and not just for high-income individuals.

Despite Biden’s promises that his plan wouldn’t increase taxes on people earning less than $400,000 per year, the official congressional scorekeepers show the tax burden will increase for families bringing home as little as $30,000 per year.

As for economic growth, a higher tax burden would kneecap the competitiveness of American businesses against foreign competitors. It would also discourage the private sector investment that creates jobs and drives wage growth for workers.

With the post-pandemic recovery still on shaky ground, this is an especially bad time to increase the tax load.

Unfortunately, Biden’s absurd talking point of a “zero dollar” cost is spreading. From Rep. Pramila Jayapal, D-Wash., head of the House Progressive Caucus, to mainstream media headlines about “zero” cost, there is now an active campaign to pretend that a radical big government agenda is free.

Since “trillion” is a nearly incomprehensible number, it’s vital to understand what the bill’s $3.5 trillion price tagactually means.

*The amount drained from the private sector works out to over $27,000 per U.S. household, which is more than the cost of five years of groceries for a typical family.

*Spending at $1,000 per second, it would take 111 years to reach $3.5 trillion. Yet because the bill would cram that spending into a single decade, it would spend an average of $11,000 per second for 10 years.

*At the time it was passed, [the Affordable Care Act] was one of the most expensive pieces of legislation ever. Adjusted for inflation, it cost $1.1 trillion—less than one-third the size of Biden’s tax-apalooza. Even the most ardent supporters of Obamacare never claimed it had a “zero” cost.

Concerns about the legislation go well beyond its incredible cost. The way those trillions would be spent is also riddled with problems.

Expanding the welfare state would discourage work for low- and middle-class families, creating dependency on government rather than creating wealth.

Doling out hundreds of billions to “green” businesses would have no measurable effect on global temperatures, but it would create a new left-wing political constituency using taxpayer dollars.

Democrats are also determined to try and force mass amnesty for illegal immigrants into the tax-and-spend bill.

At the end of the day, this legislation would further concentrate power and control in Washington, D.C. The idea that Congress and federal bureaucrats deserve more responsibility over our day-to-day lives should be a punchline regardless of one’s political leaning, yet that is exactly what the bill would do.

Instead of railroading through a piece of legislation that’s longer than the combined length of two King James Bibles, Congress ought to slow down and consider alternatives.

Reforms to already-existing benefit programs can encourage work and reduce long-term deficits. Maintaining a pro-growth tax code would do more for jobs and wages than any amount of federal meddling.

Taking a responsible approach to the nation’s finances would be a welcome surprise. Unfortunately, Biden seems intent on pretending that everything he wants is free.

He’s wrong. And if the legislative package passes, America will pay a very real price.

This article originally appeared in Fox News.

David Ditch is a research associate specializing in budget and transportation policy in the Grover M. Hermann Center for the Federal Budget at The Heritage Foundation . http://www.heritage.org/

Read more informative articles at The Daily Signal http://dailysignal.com/

David Stockman on the Banking Ponzi Scheme That’s Savaging Depositors | STRAIGHT LINE LOGIC

https://straightlinelogic.com/2021/10/01/david-stockman-on-the-banking-ponzi-scheme-thats-savaging-depositors/

Banks are not paying enough interest to compensate good old-fashioned savers for the depreciation of their dollars due to inflation. From David Stockman at internationalman.com:

The toxic effects of the Fed’s relentless interest rate repression are many, but among the worst has been the absolute savaging of bank depositors.

Interest rates on 12-month CDs (under $100,000) dropped below the inflation rate in October 2009 and have been pinned there ever since.

There is no other word for this than “expropriation” — an unconstitutional taking of property from tens of millions of households that needed to keep their funds liquid and didn’t wish to roll the dice in the junk bond market or stocks.

Worse still, the resulting vast transfer of income from depositors to banks has resulted in an egregious, artificial ballooning of bank profits and stock prices.

For instance, the combined market cap of the top six US banking institution — JP Morgan, Bank of America, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs — has risen from $200 billion at the bottom of the financial crisis during the winter of 2008-2009, where it reflected their true value absent government bailouts, to $1.5 trillion recently.

That 7.5X gain, which was 100% orchestrated by the Fed, is an unspeakable gift to the wealthy who own most of the stocks and especially to top bank executives who have cashed-in on vastly appreciated options.

Needless to say, this massive bubble in banks and other financial stocks is unsustainable. When the Fed is finally forced to shut down its printing presses, the bank stocks will be among the first to dive into the abyss.

While this might represent condign justice from a policy and equitable point of view, the extent of the harm to everyday Americans cannot be gainsaid.

That’s because Wall Street is going for one more bite at the apple, claiming that the currently accelerating rate of inflation is good for bank stocks.

Consensus stock price forecasts for JPMorgan are up 20% by 2023 and for Goldman Sachs by 70%.

Needless to say, this is just another 11th hour lure from big money speculators looking to unload vastly overvalued stocks on unwary retail investors.

Accelerating inflation supposedly portends higher growth and loan demand, but that’s a complete humbug because what we actually see in the market is stagflation.And that will cap loan demand even as it squeezes net interest margins, causing bank earnings to fall big time.

Continue reading→

Inflation Expectations Hit 10-Year-High, Home/Car Buying-Attitudes At Record Lows; UMich Survey Shows

https://www.nationandstate.com/2021/10/01/inflation-expectations-hit-10-year-high-home-car-buying-attitudes-at-record-lows-umich-survey-shows/
Inflation Expectations Hit 10-Year-High, Home/Car Buying-Attitudes At Record Lows; UMich Survey Shows Preliminary data showed no improvement in Americans’ sentiment in September, but the final print today showed a small rebound in confidence (and buying attitudes). The UMich final sentiment index rose to 72.8 from the preliminary reading of 71 (and better than the 70.3 expected). The…

Can the US avoid another government shutdown? – BBC News

https://www.bbc.com/news/world-us-canada-58732793

… At the heart of this is a bitter row over lifting the debt ceiling – a

limit on the amount the US government can borrow…

There are also dire warnings of a catastrophic default on the national debt that could reverberate through the US and the global economy…

The U.S. Government Vows to “Fix” the Food System, by Bill Bonner | STRAIGHT LINE LOGIC

https://straightlinelogic.com/2021/09/27/the-u-s-government-vows-to-fix-the-food-system-by-bill-bonner/

Like they’ve fixed the educational and medical systems, and turned everything else they’ve touched into crap. From Bill Bonner at rogueeconomics.com:

BALTIMORE, MARYLAND – Things go wrong.

The Wall Street Journalpublished this alert last night:

Democratic leaders are trying to shepherd two complicated legislative packages: a roughly $1 trillion bipartisan infrastructure bill and a sprawling healthcare, education and climate package whose proposed $3.5 trillion price tag and contents are still under intense debate within the party.

At the same time, the government’s funding is set to expire at 12:01 a.m. on Friday, Oct. 1, which would partially shut down the government if Congress doesn’t act. Lawmakers also are feuding over who is responsible for raising the debt limit and avoiding a potentially catastrophic default. Absent swift action, Treasury Secretary Janet Yellen notified Congress this month that the Treasury may be unable to keep paying all of the government’s bills on time during October.

Reuters calls it a “moment of truth” for Congress.

Politicians grandstand. They argue and point the finger at each other.

But if the spending is interrupted, it won’t be interrupted for long. The real truth is that Democrats and Republicans agree on the important issue – that the rip-off of the American public must go on.

Borrow… spend… print… and borrow more.

Eventually, the end of the world as we have known itcomes. And then, things get serious. Painful. Chaotic. And disastrous.

Empty Stomachs

And today, we look at one of the most nightmarish features of the End of the World As We Have Known It: hunger.

It is hard to imagine widespread hunger in the U.S. The country is so rich, so big, so productive… food is so plentiful… and its people are so fat. What could possibly go so wrong as to cause people to go hungry?

OECD calls on Australia to raise GST, lift jobless benefits and review the Reserve Bank to deal with economic fallout from COVID – ABC News

Comment by tonytran2015: Currently Australian GST is at 10% while many other countries are having higher GST rates.

https://www.abc.net.au/news/2021-09-15/oecd-australia-economy-gst-rba-jobs-covid-climate/100462798

  • The OECD wants Australia to increase the GST and unemployment benefits and review the RBA’s economic forecasting
  • Treasurer Josh Frydenberg has rebuffed the call for a increase in the GST but says he is open to a review of the central bank
  • OECD calls on Australia to improve environmental innovation in the fight against global warming

Hyperinflation In Europe’s Power Markets Is Disastrous For Working-Poor Ahead Of Winter

https://www.nationandstate.com/2021/09/14/hyperinflation-in-europes-power-markets-is-disastrous-for-working-poor-ahead-of-winter/
Hyperinflation In Europe’s Power Markets Is Disastrous For Working-Poor Ahead Of Winter European natural gas and electricity prices are unlikely to ease in the coming months ahead of what could be a costly winter season for stressed-out consumers. The price increases for natgas and power are unusual for this time of year, raising concern prices will remain…