The world is fraught with unfortunate ideas. A glance around reveals countless misguided notions, and remarkably, the worst ideas often gain the most traction.
Consider Mickey’s Fine Malt Liquor; it poses risks almost as severe as those associated with prescription painkillers. Yet, many indulge in it without a second thought.
Similarly, the concept of central banking has been instrumental in siphoning wealth from hardworking individuals. For over a century, the Federal Reserve’s covert taxation strategy has ensnared diligent Americans.
What explains the tendency for bad ideas to be more readily accepted than good ones? Perhaps it’s the allure of promises that offer something for nothing—suggesting one can depend on the enforced generosity of others, or withdraw more from retirement funds than they originally contributed.
These fanciful promises of rewards without effort are not only unrealistic; they’re also a common tactic to win political support. The notion of spending lavishly while lowering taxes, all while covering the deficit with escalating debt, raises the question: how can this be conceived as a sound strategy? Continue reading
Many concepts are easier to express than to actualize, as evident in President Trump’s approach to trade with China.
Trump aims to diminish the trade deficit with China, a key promise in his agenda to Make America Great Again. In May 2016, he expressed his concerns to supporters:
“We can’t continue to allow China to exploit our country, and that’s exactly what they’re doing. It’s the greatest theft in history.”
However, as Trump nears the end of his first term, the reality is starkly contradictory to his promises. Instead of a decrease, the trade deficit with China has indeed widened significantly.
For instance, from January to November 2017, the U.S. trade deficit with China reached approximately $342 billion, compared to $317.4 billion during the same period in 2016. This represents a 7.7 percent increase in the deficit while Trump has been in office. Continue reading
American consumers are not just feeling optimistic; they feel invigorated. They are borrowing and spending as if the future is immaterial.
Recently, the Federal Reserve released its latest report on consumer credit outstanding. According to their data, consumers in the U.S. accrued an additional $28 billion in November in credit card debt along with student, auto, and other non-mortgage loans. This represents an impressive 8.8 percent rise in consumer borrowing, culminating in a total outstanding consumer debt of $3.83 trillion.
This surge in consumer spending might finally drive price inflation, as gauged by the personal consumption expenditure (PCE) deflator, up to the Federal Reserve’s elusive 2 percent target. Economists and policymakers view this rate as the ideal benchmark for economic prosperity. However, we remain skeptical.
The aim of controlled inflation, or financial repression as it’s sometimes termed, is precisely what the Fed is pursuing, as it acts as the catalyst keeping the debt-based monetary system functioning. Continue reading
In today’s world, it seems that people are growing increasingly difficult to satisfy. Whether it’s clients, customers, or colleagues, they are quick to highlight your shortcomings, often mirroring the same faults.
The recently retired individuals frequently seem to have the most grievances. Take Jack Lew, for example; he commenced the New Year on a critical note in response to the GOP tax bill. On Tuesday, he mentioned on Bloomberg Radio that the tax bill would exacerbate the national debt and lead to widespread hardship.
“It’s a ticking time bomb concerning the debt,” he stated.
“The next major issue will target those most vulnerable in our society. How will we fund the deficit created by the tax cut? We can expect proposals to slash health insurance for the poor, reduce basic food assistance, and even threaten Medicare and Social Security. It’s a deeply cynical approach.”
While undoubtedly the tax bill is a misguided endeavor, it is important to recognize it is not an isolated incident. Continue reading
