I’m bearish on the economy because I think this coming Democratic administration is guided by ideology and much of what they believe undermines business development and kills off jobs, so we will get what we got from Obama — a federal government that’s neutral to hostile to business with policies that unintentionally limit or even reduce jobs growth. Exactly what a stalled economy doesn’t need. At some point, this will show up as a sharp decline in the stock market, perhaps even a prolonged recession.
It may well be a good idea to start to invest elsewhere than in the US, as the US, so deeply divided politically and so disrupted economically, may well be a country in serious long-term decline. And add to that that asset prices like the stock market and the housing sector are seriously overvalued.
Biden’s Dumb Stimulus Plan
Canceling the pipeline is another jobs-killing measure by our new president. This at a time when the unemployment rate has not recovered, but may be getting worse again. Fairy tale economics from this Democrat. Raising the minimum wage another jobs-killing measure, especially in states with lower cost of living.
These Democrats are ideologues. Reality isn’t an issue for them. They do what their ideology dictates — whatever the consequences.
Biden’s Dumb Stimulus Plan
Biden’s stimulus plan that raises the minimum wage, of course, undermines jobs by making employers pay more for their least expensive employees, so naturally what these employers will do is cut some of those jobs to protect their profit margins — this is especially true in states with a lower cost of living, as in many of the states in the South. This at a time when it is crucial to stimulate job growth. What’s the word for that. “Dumb” comes to mind.
The bulk of the program is this big giveaway to state government with deplorable finances — think New York and California. In other words, it rewards bad financial behavior by state governments with the most spendthrift mindsets. Another dumb.
Finally, it gives a huge amount of money to colleges and public schools, i.e., financing an education system that is already way overdeveloped to begin with. Another dumb.
And again we have this practice of giving money to people, which is part of the program which actually does address the immediate problem, but I ask you, is it smart for the federal government to be giving money to everyone — is that a smart practice in the long run? I think not.
Put another way, is it wise for the federal government, which is already so deeply in debt, to take on such an unprecedented amount of new debt? That’s what the big giveaway comes down to — an enormous expansion of federal government debt, which is already well beyond anyone’s real understanding before this stimulus plan is even put into effect. It mortgages our children’s future and their children’s future…and their children’s future.
What would make sense here is a massive infrastructure program by the federal government. What should have been done way back in the 2008 crisis but wasn’t. Are we about to repeat history?
The Federal Reserve money printing is causing assets like the stock market to behave as if we were in a very healthy and even robust economy, which of course we are not. Don’t make the mistake and think that we are.
The corruption by Biden’s sons gets a pass by the liberal media — this time they ignore something that is so obviously real versus inventing something about Trump that isn’t.
Biden as president would be a big step backwards — an old-time politician with a slick smile and no leadership. Not what the country needs right now to lead it out of the economic morass created by the virus. If he gets elected, the wheels come off pretty quickly. We will see some real chaos in the street then.
When will the gap between the real economy, which is in shambles, and the over–priced, sky-high stock market close? And will it close with a vengeance?
Are you going to be caught without a chair to sit in when the music stops?
The Treasury and the Federal Reserve are bailing out virtually everyone, but who is going to bail them out?
The Treasury does this by taking on more government debt; while the Federal Reserve does this my magically creating money from simply expanding their balance sheet. In both cases, in other words, the money used to bail everyone out is created out of thin air. When this charade ends and this house of cards collapses, who is going to come to the rescue?
Public School Disasters
China is emerging first from this coronavirus pandemic, and so will leap forward ahead of the rest of us economically. They benefit who caused this curse.
Recessions are no longer recessions.
The bubble that’s going to bring down the whole house of cards isn’t the stock market but government debt. At what point do government debt levels reach a tipping point? No one knows. But the massive fiscal response of governments around the world to the coronavirus pandemic have accelerating this process toward that tipping point and precipice.
Wizard of Oz in Washington