Tag: fiscal deficit

Inflating The Debt Away. Higher Prices Are Here To Stay.

Inflating The Debt Away. Higher Prices Are Here To Stay.

More bogus CPI numbers reported yesterday (HERE). The CPI itself is a poor price inflation measure given it excludes so many asset classes such as equities, art and crypto. Let's focus on one CPI line item - "food at home" which was up 0.7% over the past 12 months ended May. Sorry, that's a bogus … Continue reading Inflating The Debt Away. Higher Prices Are Here To Stay.

A Tale of Two Cities

A Tale of Two Cities

Make no mistake, Biden's $2.3 Trillion "infrastructure" spending program and $1.8 Trillion "American Families" spending program will pass Congress. That's bad news for Americans and small business and good news for Amazon (AMZN) and Walmart (WMT). **Purchase our Amazon Kindle book "Stagflation Is Imminent": HERE First: we would not be having this conversation if the Federal … Continue reading A Tale of Two Cities

More Lines To Come With Price Controls

More Lines To Come With Price Controls

It is starting to feel like the 1970's with out of control fiscal spending, inflation and now gas lines. We only have gas lines in certain parts of the country today as local government officials exercised gas price controls during the Colonial Pipeline shutdown. We could very well see similar price control policies from the … Continue reading More Lines To Come With Price Controls

The Return of Live Events

The Return of Live Events

This year's Super Bowl in Jacksonville, FL had limited fans in attendance. The WWE (tkr: WWE) plans a return to live events in 2H 2021 per last night's earnings call. This Saturday Endeavor's UFC business unit will host approximately 15,000 fans at its in-arena event (also in Jacksonville) and plans to be in Texas for … Continue reading The Return of Live Events

Enhanced Unemployment Benefits Are Hurting Retailers

Enhanced Unemployment Benefits Are Hurting Retailers

Federal programs such as the CARES Act/ Pandemic Unemployment Assistance and other COVID-related Federal handouts are hurting retail businesses. Retail used to be a great way for young people to gain valuable sales and customer experience early in their career. Many readers will have held hourly jobs at grocery stores, restaurants and the like during … Continue reading Enhanced Unemployment Benefits Are Hurting Retailers

Yellen’s Minimum Global Corporate Tax Is A Big Deal

Yellen’s Minimum Global Corporate Tax Is A Big Deal

Treasury Secretary Yellen's minimum global corporate tax is not yet global law but soon will be. The U.S. and Western European Governments and Central Banks have marched in lock step since 2008's Financial Crisis. A decade-plus of record fiscal spending, accommodative monetary policy (a Keynesian's dream) has led to record, expanding fiscal deficits that will … Continue reading Yellen’s Minimum Global Corporate Tax Is A Big Deal

A Breakdown of Biden’s $2.3 Trillion Green New Deal

A Breakdown of Biden’s $2.3 Trillion Green New Deal

If you believe that the Federal Government is an efficient capital allocator you will love Biden's "infrastructure" spending program. Similarly, if you are a "GreenTech" executive or entrepreneur, this massive spending program is shaping up to provide a long-term tail wind. Government officials will have trillions of newly printed capital to play with. Slim chance … Continue reading A Breakdown of Biden’s $2.3 Trillion Green New Deal

The Ugliest Chart I Have Ever Seen

The Ugliest Chart I Have Ever Seen

With the Money Supply (M1) up 358% since January 2020 (as of February 2021), there is simply zero percent probability that prices are not going higher. A 3-4x increase in M1 ought to inflate prices by a similar multiple. Most of the recent $1.9 Trillion (the actual cost will be higher), COVID spending program was … Continue reading The Ugliest Chart I Have Ever Seen

Stagflation Is Imminent<span class="badge-status" style="background:red">Premium</span> 

Stagflation Is ImminentPremium 

It is difficult to imagine a scenario in which the U.S. economy does not experience stagflation. Record debt levels, low labor participation, muted long-term Real GDP growth, persistent inflation and the fact that the Federal Reserve is limited in its options to fight inflation leads us to believe that stagflation is imminent. Our premium TEK2day … Continue reading Stagflation Is ImminentPremium 

Powell Just Told Us Why Interest Rates Will Remain Low

Powell Just Told Us Why Interest Rates Will Remain Low

“Given the low level of interest rates, there’s no issue about the United States being able to service its debt at this time or in the foreseeable future,” - Fed Chair Jerome Powell. Maintaining low rates to minimize debt service expense is top of mind with the Fed as we wrote last week and as … Continue reading Powell Just Told Us Why Interest Rates Will Remain Low