The Coming Recession

[g5000]

I wonder if there is one thing we can all agree on.

If there is, it should be the fact that neither of the major parties is fiscally responsible.

No matter which party controls Congress, no matter what letter is after the name of the president, the federal debt climbs faster and faster with each succeeding administration. It is as if every president is trying to beat the previous president's record.

Strangely enough, the Antichrist Bill Clinton turns out to be the most fiscally responsible president in the modern era. Bush added $5 trillion to the debt in eight years, Obama added $8 trillion in eight years, Trump added $8 trillion in four years, and it looks like Biden wants to add $12 trillion in four years.


But perhaps the greatest criminal enterprise since 2008 has been the Federal Reserve.

The Fed has been keeping interest rates near zero (ZIRP) for way too long. They enacted ZIRP to rescue the economy from the Great Recession. But once the economy began to recover, they did not discontinue the program. Even worse, they enacted QE1, then QE2, then QE3 and we have been under QE4ever since.

This has resulted in a massive increase in the money supply.


What's more, when you keep interests rates too low, you encourage high risk investments. If interests rates are low, the only decent returns you can get from an investment is to invest in high risk vehicles. Like, say, cryptocurrency. And corporate junk and near-junk bonds.


One definition of inflation is "too many dollars chasing too few goods".


Take a look at this chart of the M2 money supply:

M2

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

There are way too many dollars out there.

You may notice a sudden uptick in the chart at the beginning of 2020. That is because the Fed changed the definition of M1 (which is part of M2) in May 2020. The reasons for this are nefarious. I can go into that later.

Nevertheless, you can see with your own eyes there is too much money in our economy.



Back in the 2000 presidential campaign, Darth Cheney ominously stated, "Deficits don't matter." That may be true so long as our economy grows faster than our debt.

But look at this chart of debt-to-GDP:

Since the Great Recession, our debt has been growing much faster than our economy.

More in the next post.

 

[Thinker101]

I wonder if there is one thing we can all agree on.

If there is, it should be the fact that neither of the major parties is fiscally responsible.

No matter which party controls Congress, no matter what letter is after the name of the president, the federal debt climbs faster and faster with each succeeding administration. It is as if every president is trying to beat the previous president's record.

Strangely enough, the Antichrist Bill Clinton turns out to be the most fiscally responsible president in the modern era. Bush added $5 trillion to the debt in eight years, Obama added $8 trillion in eight years, Trump added $8 trillion in four years, and it looks like Biden wants to add $12 trillion in four years.


But perhaps the greatest criminal enterprise since 2008 has been the Federal Reserve.

The Fed has been keeping interest rates near zero (ZIRP) for way too long. They enacted ZIRP to rescue the economy from the Great Recession. But once the economy began to recover, they did not discontinue the program. Even worse, they enacted QE1, then QE2, then QE3 and we have been under QE4ever since.

This has resulted in a massive increase in the money supply.


What's more, when you keep interests rates too low, you encourage high risk investments. If interests rates are low, the only decent returns you can get from an investment is to invest in high risk vehicles. Like, say, cryptocurrency. And corporate junk and near-junk bonds.


One definition of inflation is "too many dollars chasing too few goods".


Take a look at this chart of the M2 money supply:

M2

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

There are way too many dollars out there.

You may notice a sudden uptick in the chart at the beginning of 2020. That is because the Fed changed the definition of M1 (which is part of M2) in May 2020. The reasons for this are nefarious. I can go into that later.

Nevertheless, you can see with your own eyes there is too much money in our economy.



Back in the 2000 presidential campaign, Darth Cheney ominously stated, "Deficits don't matter." That may be true so long as our economy grows faster than our debt.

But look at this chart of debt-to-GDP:

Since the Great Recession, our debt has been growing much faster than our economy.

More in the next post.

Yep, best to get ahead of the coming shit-storm and blame someone, Bidung is running out of people to blame.

 

[g5000]

Here is the formula for GDP:

GDP = C + G + I + NX. C is equal to all private consumption, or consumer spending, in a nation's economy, G is the sum of government spending, I is the sum of all the country's investment, including businesses capital expenditures and NX is the nation's total net exports, calculated as total exports minus total imports (NX = Exports - Imports).

Gross Domestic Product - GDP


What our politicians of both parties have figured out is that they can artificially juice GDP growth by increasing government spending!

Instead of doing the hard work of actually putting policies in place which will strengthen our economy, they took the lazy way out and just spent like the proverbial drunken sailor in a whorehouse.

Bringing pork back home to the rubes is the surest way to stay in power. And don't kid yourselves, folks, that is all our politicians care about. They will fuck you in the ass if it will keep them in power. And boy oh boy have they been fucking you and your descendants in the ass.

Congress has had a fantastically low approval rating for decades, and yet House members have a 98 percent re-election rate, and Senate members have an 80 percent re-election rate!

That's because they have convinced the rubes that the problem is with the other team. It's those damned Democrats and their welfare programs! It's those damned Republicans and their tax cuts!

"Those other guys in Congress spend too much on PORK, but my guy brings home the BACON."


This cycle of artificially juicing GDP is a Ponzi scheme. The more our federal debt increases, the less our GDP grows, which then moves our politicians to spend even more, which increases debt even more, when suppresses GDP even more, and so on ad infinitum.

Until it all comes crashing down.


More in the next post.

 

[g5000]

Yep, best to get ahead of the coming shit-storm and blame someone, Bidung is running out of people to blame.

What Biden policy is responsible for inflation?

Only a straight up retard would think our problems were all created in the past year.

 

[johngaltshrugged]

Even if we did a 180 on everything today, it's too late to stave off the coming collapse.
The dollar is no longer the exclusive reserve currency. Energy & other products are being traded in the Yuan & Rubles now.
The special standing of our currency is collapsing across the world & that spells huge problems in the very near future. Much worse than anything we have seen so far & maybe worse than the great depression era.
No more printing ourselves out of stupid financial decisions.
The chickens are coming home to roost but most deny there are any chickens

 

[g5000]

Federal revenues are dependent on the size of the economy.

If you were running up credit card debt faster than your income was growing, you can see where you would eventually be unable to keep up with even the minimum payments.

That's where our federal debt is headed. It is growing faster than federal revenues. Eventually, we won't be able to keep up.

Especially when interest rates rise. If your credit card interest rate rises, your minimum payment rises.

By the way, your credit card interest rate is going to rise this year, if it hasn't already. And it is going to go up even more.

 

[johngaltshrugged]

Here is the formula for GDP:

GDP = C + G + I + NX. C is equal to all private consumption, or consumer spending, in a nation's economy, G is the sum of government spending, I is the sum of all the country's investment, including businesses capital expenditures and NX is the nation's total net exports, calculated as total exports minus total imports (NX = Exports - Imports).

Gross Domestic Product - GDP


What our politicians of both parties have figured out is that they can artificially juice GDP growth by increasing government spending!

Instead of doing the hard work of actually putting policies in place which will strengthen our economy, they took the lazy way out and just spent like the proverbial drunken sailor in a whorehouse.

Bringing pork back home to the rubes is the surest way to stay in power. And don't kid yourselves, folks, that is all our politicians care about. They will fuck you in the ass if it will keep them in power. And boy oh boy have they been fucking you and your descendants in the ass.

Congress has had a fantastically low approval rating for decades, and yet House members have a 98 percent re-election rate, and Senate members have an 80 percent re-election rate!

That's because they have convinced the rubes that the problem is with the other team. It's those damned Democrats and their welfare programs! It's those damned Republicans and their tax cuts!

"Those other guys in Congress spend too much on PORK, but my guy brings home the BACON."


This cycle of artificially juicing GDP is a Ponzi scheme. The more our federal debt increases, the less our GDP grows, which then moves our politicians to spend even more, which increases debt even more, when suppresses GDP even more, and so on ad infinitum.

Until it all comes crashing down.


More in the next post.

This is all Uniparty Kabuki Theatre that the low info masses eat up with a spoon. It keeps us distracted while they rob the treasury to store up shekels prior to the NWO reset train running over the rest of us.
DC has been a giant multi-faceted grift for years

 

[g5000]

How does the Fed get inflation under control?

First, they raise interest rates. They make money more expensive to borrow. That results in less borrowing. And that slows the economy down.

The Fed laughably thinks they can provide a "soft landing". They said that in 2008, too. They say it every time.

But a recession is inevitable.


One of the fallouts from higher interest rates is that all those corporations who borrowed money cheaply and spent it cheaply are now going to find it harder to roll over their debts. I expect there will be not a few defaults.


Here's how cheap money works. You borrow a zillion dollars for next to nothing interest. Then you take that cheap money and invest it in something which has high returns. Like corporate junk bonds.

But when interest rates rise, it costs more to borrow money. And those corporate junk bonds you bought are now worth less money in the markets because newer issues of bonds pay higher interest. It's lose/lose.

 

[Thinker101]

What Biden policy is responsible for inflation?

Only a straight up retard would think our problems were all created in the past year.

Biden's executive order banning new drilling leases on federal lands, pursued more than $20 billion in new energy taxes on oil and natural gas production, and vetoed permitting for the Keystone XL pipeline.

After spending trillions in 2020 to fight the COVID-19 pandemic, the Biden administration passed an unnecessary, additional $1.9 trillion spending bill in March.

Almost a year after this last funding bill was passed, $1 trillion in COVID-19 funding has not been spent and $500 billion hasn’t even been allocated. The Biden spending bill also included extended a federal program that paid people not to work for months.

States that continued to participate in additional unemployment benefit programs experienced a 0.8 percent higher unemployment rate in July and a 0.7 percent higher unemployment rate in August than they would have if they suspended benefits. In states that terminated the program early, the flow of unemployed workers into employment increased by two-thirds.

Joe Biden’s Policies Have Led to Surging Inflation

 

[g5000]

Another way to lower inflation is to take money out of the economy. The Fed does this by reducing their quantitative easing.

When the bonds the Fed owns mature, they stop rolling them over into new bonds. Instead, they just burn the cash from the matured bonds.

If the Fed stops buying new bonds, the bond market starts to fizzle. Bond sellers have to offer higher interest rates.

Our federal government finances its wild spending...with bonds.

You can see where this is going.

Recession.

 

[g5000]

Biden's executive order banning new drilling leases on federal lands, pursued more than $20 billion in new energy taxes on oil and natural gas production, and vetoed permitting for the Keystone XL pipeline.

After spending trillions in 2020 to fight the COVID-19 pandemic, the Biden administration passed an unnecessary, additional $1.9 trillion spending bill in March.

Almost a year after this last funding bill was passed, $1 trillion in COVID-19 funding has not been spent and $500 billion hasn’t even been allocated. The Biden spending bill also included extended a federal program that paid people not to work for months.

States that continued to participate in additional unemployment benefit programs experienced a 0.8 percent higher unemployment rate in July and a 0.7 percent higher unemployment rate in August than they would have if they suspended benefits. In states that terminated the program early, the flow of unemployed workers into employment increased by two-thirds.

Joe Biden’s Policies Have Led to Surging Inflation

Domestic oil production increased by 31 percent in Biden's first year. It only increased by 21 percent in Trump's first year.

Biden approved more leases than Trump or Obama in his first year.

Stop drinking the piss of your lying propagandists.

Saudi Arabia and other countries are producing LESS oil than during the pandemic, when oil production was at record lows. Think about the effect of that, dipshit.

 

[tyroneweaver]

This is all Uniparty Kabuki theatre

Ya, it does sorta remnd me of a MST3K movie

 

[iamwhatiseem]

I wonder if there is one thing we can all agree on.

If there is, it should be the fact that neither of the major parties is fiscally responsible.

No matter which party controls Congress, no matter what letter is after the name of the president, the federal debt climbs faster and faster with each succeeding administration. It is as if every president is trying to beat the previous president's record.

Strangely enough, the Antichrist Bill Clinton turns out to be the most fiscally responsible president in the modern era. Bush added $5 trillion to the debt in eight years, Obama added $8 trillion in eight years, Trump added $8 trillion in four years, and it looks like Biden wants to add $12 trillion in four years.


But perhaps the greatest criminal enterprise since 2008 has been the Federal Reserve.

The Fed has been keeping interest rates near zero (ZIRP) for way too long. They enacted ZIRP to rescue the economy from the Great Recession. But once the economy began to recover, they did not discontinue the program. Even worse, they enacted QE1, then QE2, then QE3 and we have been under QE4ever since.

This has resulted in a massive increase in the money supply.


What's more, when you keep interests rates too low, you encourage high risk investments. If interests rates are low, the only decent returns you can get from an investment is to invest in high risk vehicles. Like, say, cryptocurrency. And corporate junk and near-junk bonds.


One definition of inflation is "too many dollars chasing too few goods".


Take a look at this chart of the M2 money supply:

M2

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

There are way too many dollars out there.

You may notice a sudden uptick in the chart at the beginning of 2020. That is because the Fed changed the definition of M1 (which is part of M2) in May 2020. The reasons for this are nefarious. I can go into that later.

Nevertheless, you can see with your own eyes there is too much money in our economy.



Back in the 2000 presidential campaign, Darth Cheney ominously stated, "Deficits don't matter." That may be true so long as our economy grows faster than our debt.

But look at this chart of debt-to-GDP:

Since the Great Recession, our debt has been growing much faster than our economy.

More in the next post.

Sounds like we need more covid relief money!!
And let's just make unemployment an extra $1000 a month.
Cause nothing solves too much money in the system than giving more away!!

 

[gipper]

Bringing pork back home to the rubes is the surest way to stay in power.

I agree with nearly all except for the part about bringing pork home for the rubes. If by rubes you mean the people, I disagree. The duopoly doesn’t care about the people. They care about their donors. So, the money is given to donors who in turn give a kickback to the corrupt politician.

It’s a racket the Mafia can only dream of.

 

[g5000]

There are some people who will forever be stuck in partisan hackery. It is impossible for them to realize this mess was a long term bipartisan effort.

 

[marvin martian]

What Biden policy is responsible for inflation?

Only a straight up retard would think our problems were all created in the past year.

Hahaha! That's exactly what Joe Biden is claiming when he blames it all on Putin and "greedy corporations".

Sucker. LOL

 

[g5000]

I agree with nearly all except for the part about bringing pork home for the rubes. If by rubes you mean the people, I disagree. The duopoly doesn’t care about the people. They care about their donors. So, the money is given to donors who in turn give a kickback to the corrupt politician.

It’s a racket the Mafia can only dream of.

I agree. The vast bulk of the pork goes to donors.

And that pork comes in the form of tax breaks, government contracts, regulations which make it harder for competitors to break into the market, or deregulations which benefit the donors.

As I have said many times, the playing field is being tilted legislatively.

 

[AzogtheDefiler]

Domestic oil production increased by 31 percent in Biden's first year. It only increased by 21 percent in Trump's first year.

Biden approved more leases than Trump or Obama in his first year.

Stop drinking the piss of your lying propagandists.

Saudi Arabia and other countries are producing LESS oil than during the pandemic, when oil production was a record lows. Think about the effect of that, dipshit.

Why won’t OPEC take his calls? You really don’t understand basic economics. So sad.

 

[Thinker101]

Domestic oil production increased by 31 percent in Biden's first year. It only increased by 21 percent in Trump's first year.

Biden approved more leases than Trump or Obama in his first year.

Stop drinking the piss of your lying propagandists.

Saudi Arabia and other countries are producing LESS oil than during the pandemic, when oil production was a record lows. Think about the effect of that, dipshit.

Not to worry, it's all "transitory".....dumbass.

 

[Meathead]

I wonder if there is one thing we can all agree on.

If there is, it should be the fact that neither of the major parties is fiscally responsible.

No matter which party controls Congress, no matter what letter is after the name of the president, the federal debt climbs faster and faster with each succeeding administration. It is as if every president is trying to beat the previous president's record.

Strangely enough, the Antichrist Bill Clinton turns out to be the most fiscally responsible president in the modern era. Bush added $5 trillion to the debt in eight years, Obama added $8 trillion in eight years, Trump added $8 trillion in four years, and it looks like Biden wants to add $12 trillion in four years.


But perhaps the greatest criminal enterprise since 2008 has been the Federal Reserve.

The Fed has been keeping interest rates near zero (ZIRP) for way too long. They enacted ZIRP to rescue the economy from the Great Recession. But once the economy began to recover, they did not discontinue the program. Even worse, they enacted QE1, then QE2, then QE3 and we have been under QE4ever since.

This has resulted in a massive increase in the money supply.


What's more, when you keep interests rates too low, you encourage high risk investments. If interests rates are low, the only decent returns you can get from an investment is to invest in high risk vehicles. Like, say, cryptocurrency. And corporate junk and near-junk bonds.


One definition of inflation is "too many dollars chasing too few goods".


Take a look at this chart of the M2 money supply:

M2

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

fred.stlouisfed.org

There are way too many dollars out there.

You may notice a sudden uptick in the chart at the beginning of 2020. That is because the Fed changed the definition of M1 (which is part of M2) in May 2020. The reasons for this are nefarious. I can go into that later.

Nevertheless, you can see with your own eyes there is too much money in our economy.



Back in the 2000 presidential campaign, Darth Cheney ominously stated, "Deficits don't matter." That may be true so long as our economy grows faster than our debt.

But look at this chart of debt-to-GDP:

Since the Great Recession, our debt has been growing much faster than our economy.

More in the next post.

Sounds very much like preemptive apologizing for yet another Brandon clusterfuck.