9 Comments

Brilliant article. This should be on the front page of Financial Times, The Economist, and the Wall Street Journal. I wonder why it isn't? Not enough room left over after they print all the half-truths and untruths?

Expand full comment
Aug 5Liked by Peter St Onge

The Biden crime syndicate has been smoke and mirrors since day one

Expand full comment

ZeroHedge and T. J. Rogers....Pretty good reflective stuff. "Or choose peace of mind and either keep your money in a broader ETF like SPY or, of course, a store of value like a house, gold or bitcoin, or building a business that doesn’t care which industries government money is flaming out this week." Decent advise, though I do believe one can do better for oneself by investing in individual stocks and companies as opposed to a broad based ETF like SPY. It takes more diligence, but the rewards can be great and more fulfilling. Regardless of what one does, it is upsetting to cognizant taxpayers what folly they are subject to pay for.

If things are truly so peachy, why is the cardboard box indicator flashing RED?............................

https://schiffgold.com/key-gold-news/big-drop-in-cardboard-box-sales-scream-recession/

Expand full comment

The deeper the USA goes into debt gambling with taxpayer dollars on investments that lack, at least, breakeven return on those investments the more likely the IMF or the like will "kindly" bail US out of our impending trainwreck. In which case "austerity measures" will no longer be a threat, but the reality. Ask Greece about their experience.

Expand full comment

But the stock market is making money on green investments ! Biden is keeping the investor class happy. In the meantime, the 99% don’t have affordable housing, job training (re-skilling), or reasonably priced college education.

Expand full comment

A common industry term that Congress likes to use is the money multiplier effect. They take an Economics 101 course at one of our favorite State Universities and tell people that the $1 the government spends on stimulus packages results in a total of $5 of economic activity. They use that logic to flush the market with cash, and our GDP continues to go up. It all looks good...

...until inflation starts to kick in. Also, if they had left that $1 with private industry it would have turned into $10. Therefore, there is a $5 loss in economic activity, because taking and redistributing money is not as efficient as if that dollar just stayed with the company it was taken from. When government taxes and spends money there is a net loss in dollar value, because that tax represents an inefficiency in the trade, and when you have trillions of inefficiencies in the economy then it starts to show.

Money becomes worth less and less until it is totally worthless. Plus, all the people who get to hand out that money, who shouldn't have had it to begin with, become corrupt. It is total crazy town Keynesian economics that think our huge debt burden and endless free-money-giveaway isn't headed to total catastrophe.

With all that said, Japan's debt/GDP ratio is about twice as much as the US, so it is baffling to think we could burden twice as much debt as we currently have and still be ok.

How do we know when it is all too much?

Expand full comment