Operating at the Intersection of Technology and the Capital Markets
Tag: fiscal deficit
The Atlanta Fed's real GDP estimate of 3.7% is well below inflation as measured by the Fed (CPI of 5.4%) and well below any real world price inflation measure. We do not subscribe to the Fed's theory that price inflation is transitory. Our view is that price inflation will grow from here. If real GDP … Continue reading It Is Beginning To Look Like Stagflation
Our view is that the Fed will only truly pursue an extended tightening course (full wind down of QE followed by rate hikes), if price inflation continues to where the Biden Administration feels it will cost the Democrat Party in the 2022 mid-term elections and/or hurt Biden's chances for re-election in 2024. The Fed is … Continue reading Our View On Fed Tightening and M&A
Amidst the talk of the Fed potentially tightening monetary policy in 2023 or even next year, the Fed expanded its Balance Sheet at its fastest pace since March 17th of this year, growing assets 1.4% from the week prior. This narrative of the Fed potentially becoming more hawkish needs to be put into perspective. With … Continue reading The Fed Expanded Its Balance Sheet Amidst Tightening Chatter
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.
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
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
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
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
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
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
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