Central planners have compromised our future. Today, we find ourselves treading their self-destructive path…
Remember the fiscal and monetary measures intended to cushion the impacts of government-imposed lockdowns? They were meant to ignite a self-sustaining economic boom. Instead, these intrusive policies have unleashed chaos and destruction.
The official inflation rate, as outlined by the government’s consumer price index (CPI), is currently climbing at an annualized rate of 5.4 percent. However, that’s just the tip of the iceberg. Alternative inflation measures reveal rates that are two to three times higher than the official CPI, far better reflecting the realities consumers face.
Simultaneously, the economy seems to be losing momentum…
As reported by the Atlanta Fed’s GDPNow forecasting model, real Gross Domestic Product (GDP) growth for the third quarter of 2021 is projected at a mere 0.5 percent, a decline from 1.2 percent on October 15, 6 percent in late August, and 14 percent back in May. Continue reading
Inflation regarding consumer prices is far from dissipating. This contradicts the “transitory” narrative put forth by Federal Reserve Chairman Jerome Powell earlier this year.
Atlanta Fed President Raphael Bostic recently acknowledged that inflation is not merely a temporary phenomenon. His assurances that the Fed can effectively manage this situation leave us skeptical.
The repercussions of rising consumer prices are extensive. For one, the burden placed on consumers is immensely disruptive, functioning like a heavy tax that erodes already strained family budgets. Currently, personal income growth is lagging behind escalating consumer prices in this ongoing scenario of stagflation.
Businesses producing industrial materials and consumer goods also feel the heat. They can transfer some of the rising costs to consumers or take a hit to their profit margins by absorbing short-term price hikes. However, there are natural limits to how much of these price increases can be accepted and communicated. Continue reading
The threat of default has been averted!
This was the headline celebrated by the media last Thursday after news of a short-term debt ceiling extension broke. But can we truly say a default has been sidestepped?
Was a default truly averted when Nixon severed the gold standard, binding the globe to an irredeemable paper currency?
Wall Street seemed unbothered by the long-term implications of Washington’s policies surrounding limitless debt or the soft inflationary default that Congress is orchestrating. Instead, they indulged in their favorite pastime: inflating major stock market indices.
A week can certainly change perspectives. While September proved to be harsh for stocks, the first week of October offered a delightful respite.
Once again, Washington has laid out a plan to keep the money flowing. This plan bears a striking resemblance to strategies that have been deployed over the past five decades. The approach is simple: keep pushing the deadlines further into the future.
Wall Street generally favors such a strategy. The accumulation of debt, both public and private, tends to correlate with rising stock market indices. Heightened stock prices create a false sense of wealth among the populace. Continue reading
Until the Evergrande Group began missing payments to creditors, Xi Jinping enjoyed a relatively smooth reign. However, the responsibilities of a communist leader are substantial. When the Ponzi-like financial structure underpinning the nation’s second-largest property developer starts to implode, it becomes a serious issue.
A major crisis moment for any communist leader arises when their country’s trajectory strays from the intended path outlined in five-year plans designed to govern it. Attempting to control the lives of 1.4 billion individuals only works effectively when the nation’s reality aligns with the Communist Party’s official narrative. When this alignment fails, a regime must resort to fear and enforcement to maintain its façade.
“A man’s heart deviseth his way: but the Lord directeth his steps,” states King Solomon (Proverbs 16:9). The Almighty, from His place above and on this earth, possesses a remarkable sense of humor, especially when serving up doses of humility.
Xi Jinping, perhaps by sheer fortune, timed his entrance onto the global stage impeccably. A two-decade economic boom lifted the People’s Republic of China to a position of greater international significance. Yet, instead of reveling in the achievements of his predecessors, Xi prioritized showcasing his strength beyond China’s borders while simultaneously surveilling and censoring his citizens domestically. Continue reading
