“We are a product of Congress, not enshrined in the Constitution.” – Fed Chair Jerome Powell, December 4, 2024
Chasing the Wild Goose
Wealth is being systematically shifted from workers and savers to the government and large financial institutions, a process meticulously maintained with Swiss-like precision. In the United States, this intricate operation often escapes public notice.
While the nation turns its attention to NFL games, holiday promotions, cabinet appointments, and other distractions, the grave reality remains. Issues like these—various forms of entertainment and spectacle—preoccupy the American public as they pursue elusive happiness.
In the meantime, debt accumulates quietly—similar to deadwood in Angeles National Forest. Both public and private debts are mounting, and the chances of these obligations being repaid truthfully are slim. They exceed what the economy can realistically bear.
Currently, the national debt has surpassed $36.1 trillion. However, this is just part of a broader narrative. Unfunded obligations—such as Social Security, Medicare, public federal debt, and benefits for federal employees and veterans—now total over $221.4 trillion. For every U.S. citizen, this equates to a staggering share of more than $645,322. Continue reading
In a remarkable turn of events following Donald Trump’s election as the 47th President of the United States, the Dow Jones Industrial Average (DJIA) exceeded the 44,000-point mark for the first time. Shortly after, it even crossed the 45,000 threshold.
The stock market is on a robust upswing, spurred by what’s commonly known as the Trump bump. Optimism about the future has driven investors and speculators to capitalize on this surge.
The prevailing sentiment suggests that Trump’s pro-growth policies will free the economy from heavy regulations. His focus on American interests is expected to yield soaring corporate earnings, which in turn should elevate stock values further.
This reasoning, however, is fundamentally flawed. Stocks are already overvalued, priced as if everything is perfect. Any potential positive impact from Trump’s policies might take months, if not longer, to reflect in corporate profitability. Yet, share prices are climbing as if benefits will materialize immediately. Continue reading
“And cast the unprofitable servant into outer darkness; there will be weeping and gnashing of teeth.” – Matthew 25:30
Daycare for Adults
Sometimes circumstances must worsen to pave the way for improvement. For example, cutting deficit spending and ridding government waste may initially harm GDP and employment. Yet, these measures are essential for restoring the nation’s economic vitality.
For over half a century, U.S. government spending has spiraled out of control, and it has surged dramatically in the past twenty years. Since 2004, the national debt has surged from $8 trillion to a staggering $36 trillion.
This debt-driven government expenditure has caused severe distortions in the economy, affecting consumer prices, increasing the number of unproductive government positions, and crafting an illusion of economic growth.
Unquestionably, this excessive spending has contributed to the inflation of consumer prices. Furthermore, it has inflated critical government metrics like GDP and employment figures. Continue reading
The phrase “When goods don’t cross borders, soldiers will,” is commonly associated with 19th-century writer and free-market economist Frédéric Bastiat. While these exact words are not directly sourced from his writings, they encapsulate sentiments that he would likely support.
This concept points to the fact that free trade not only enhances the prosperity of societies but could also be critical for maintaining peaceful international relations. Historically, the decline in free trade has often aligned with the onset of wars, which initially begin as economic conflicts before escalating into armed confrontations. As President-elect Trump prepares to implement new import tariffs, this is a crucial facet to consider.
For many, the expansion of global trade is a long-standing norm, one that only older generations may remember as anything but a constant trend. Nevertheless, there have been prolonged periods of contraction in global trade throughout history, reflecting long-term secular trends that have unfolded over millennia. Continue reading
This revised version presents the original content with improved readability and a cohesive flow while maintaining the original HTML structure and positioning of images. The additional introduction and conclusion encapsulate the main themes, enhancing the overall context.
