This week provided further evidence that America is entrenched in a troubling path of currency devaluation. Years of misguided financial policies have led us to this critical juncture. Before we dive deeper, let’s first discuss the concept of commitment.
While we’ve never participated in hog slaughtering, we understand it can be quite gruesome. The sheer volume of bloodshed is staggering—an apt analogy for America’s current financial state.
When we think about a classic breakfast of bacon and eggs, a noticeable difference in commitment emerges. The chicken merely contributes, while the pig is completely devoted to the meal—its life is sacrificed for the bacon.
Currently, America is experiencing severe financial hemorrhaging. Public and private debts are spiraling out of control. Take, for instance, the budget deficit for fiscal year 2020, which ended on September 30: it was a staggering $3.3 trillion. This means the federal government spent twice as much as it generated from taxes and other revenue streams. Moreover, public debt has exceeded 100 percent of GDP. Continue reading
The impact of the CARES Act rollout was marked by significant turmoil and uncertainty: lockdowns, business closures, unemployment spikes, and widespread protests.
These challenges are deep-rooted and far-reaching, surpassing the scope of a $2.2 trillion economic stimulus package. Yet, the prevailing sentiment seems to be that taking action, no matter how flawed, is preferable to inaction. Is it right to address an economic slump through legislation and a massive injection of artificial funds?
Many economists and politicians insist that without the CARES Act, conditions would be dire. Thus, they argue, we need another stimulus package.
However, we approach this claim with skepticism. How can anyone know for sure what the consequences would have been had the CARES Act not been implemented? Are we genuinely better off because of its existence?
One thing is clear: a necessary cleansing of bad debt was postponed, and we are now destined to navigate a heavily indebted economy, influenced by the legacy of the CARES Act, for years to come. Continue reading
“I want to see people get money.” – Donald J. Trump, U.S. President, September 17, 2020
“Now is not the time to worry about shrinking the deficit or shrinking the Fed balance sheet.” – Steven Mnuchin, U.S. Secretary of the Treasury, September 14, 2020
Money for the People
The true epidemic afflicting the American people is not a physical illness; it is something much more detrimental than COVID-19. What we are witnessing is a pervasive mindset.
This collective affliction stems from the unfounded belief that the government possesses an infinite reservoir of free money, accessible to everyone except the ultra-wealthy. Why strive for individual initiative and fortitude when a series of stimulus measures promises a cushy existence? This mindset rapidly proliferated throughout the nation in 2020.
Just a year ago, many believed they could thrive on the forced generosity of their neighbors, where to benefit one required the exploitation of another. Continue reading
As hot, dry winds return to California, the state remains uncomfortably dry after enduring a scorching summer. The lush sage and chaparral, along with inland mountain forests, have turned into a veritable powder keg.
What follows is as predictable as the setting sun: a single spark—be it from a downed power line or a backfiring truck—can ignite a catastrophic wildfire. The Golden State can quickly be engulfed in flames, turning the sky an eerie orange and showering ash upon the ground.
This scenario repeats itself annually, often branded as the worst year yet for wildfires. The flames rage until winter tempers the heat, only for the memory of the fires to fade until mudslides reveal their aftermath.
Indeed, California is a quirky and unpredictable place. The Governor often displays erratic behavior, positioning himself as a top candidate for the 2024 presidential election. Continue reading
In summary, America finds itself in a challenging economic situation, exacerbated by dubious policies and shifting beliefs among its population. While lawmakers push for solutions, the long-term implications of quick fixes remain uncertain, creating a complex landscape for future economic navigation.
