Financing the U.S. government’s mega budget deficit – the gap between government spending and tax revenue – has become an act of madness.  Just this week, the U.S. Treasury flooded the market with $180 billion of new debt.  Did you buy some? Washington’s spending is completely out of control.  Even the International Monetary Fund (IMF) is speaking up.  Its recent World Economic Outlook points to spending “that is out of line with long-term fiscal sustainability.” Of note, are expanding U.S. budget deficits, which ballooned from $1.4 trillion in fiscal year 2022 to $1.7 tril ..read more

Simple answers are not always correct answers.  However, simple answers are often accepted as correct when people are too lazy or distracted to bother to know any better. Mundis vult decipi, ergo decipiatur.  The world wants to be deceived, so let it be deceived. President Biden – a conniving politician – is fond of blaming corporate greed for rising prices.  This has proved to be a simple and effective answer for why consumer prices are so high. In one simple statement he shifts the focus away from the government’s failed policies.  In doing so, he also points to a boogeym ..read more

On Monday, the U.S. Commerce Department announced it was awarding Taiwan Semiconductor Manufacturing Company (TSMC) a $6.6 billion CHIPS Act subsidy for the fabrication of computer microchips in Phoenix, Arizona.  TSMC will also receive up to $5 billion in low-cost government loans. In return, TSMC will expand its planned investment from $40 billion to $65 billion and add a third Arizona fabrication site by 2030.  The company will be producing the world’s most advanced 2 nanometer technology at its second site starting in 2028. The Commerce Department anticipates the development will ..read more

The S&P 500 closed out Q1 2024, up over 10 percent.  But while the S&P 500 was rising day after day one former highflyer was crashing and burning. The Boeing Company closed out the quarter down over 25 percent.  Still, it wasn’t the worst performing stock in the S&P 500.  That honor goes to Tesla Inc., which declined over 29 percent. This amounted to $230 billion in lost market capitalization.  Moreover, according to Forbes’ estimates, it contributed to a $55.1 billion decrease to Tesla CEO Elon Musk’s net worth.  And it dropped Musk from the world’s riches ..read more

It cannot be said enough.  Inflation starts with the inflation of the money supply.  From there, the excess money and credit chases consumer prices higher.  So, too, it pumps up both stock and real estate market bubbles. Rising prices then come with a wide range of effects.  Asset owners are enriched as the nominal prices of the things they own inflate.  This also reduces the relative debt burden of the borrowing used to purchase the assets. Workers, having little but their labors to sell, are impoverished.  Price increases for consumer goods vastly outpace wages ..read more

Michelle Mack thought she had it made.  The suburban mom was living the high life with her husband and kids in their $3 million mansion in northern San Diego County. But that was before December 6, 2023.  This was the day police raided her home, put her in handcuffs, took her away in her PJs and slippers, and threw her in the pokey. Now Mack’s facing 136 felony counts of grand theft, two counts of receiving stolen property, one count of conspiracy and one count of organized retail crime.  Her house, which includes a swimming pool, four-car garage and 31-acre vineyard, is listed ..read more

These days, individuals who, like John Locke, “love truth for truth’s sake,” are far and away in the minority.  Out of the bowels of America’s higher learning institutions comes a young populace with sullied brains and fanatical hearts. At a hefty price tag now being piled on taxpayers, they learned not how to think; but, what to think.  And in doing so, they’ve retarded their mental abilities. Those who skipped college to learn a trade are more readily able to discern an objective truth using basic common sense.  They weren’t subjected to an abundance of rubbish like their coll ..read more

And just like that.  The year is half over.  Can you believe it? Hardly the blink of an eye ago we were putting the final touches on our one great big nasty prediction for 2023 – that China will invade Taiwan. Of course, this hasn’t come true – yet.  And, quite frankly, we hope it doggone never does.  But with fools like Anthony Blinken in charge, the unthinkable could become a reality. Certainly, the stock market, as measured by the S&P 500, has performed well.  As of market close on Thursday (June 29), the S&P 500 is up 14.51 percent year-to-date.  Not b ..read more

“When the wave breaks here.  Don’t be there.  Or you’re gonna get drilled!” – Turtle A New Bull Market? Have U.S. stocks really entered a new bull market? That’s the claim of some experts following the S&P 500’s recent attainment of a 20 percent increase from its October 2022 interim low.  We have some reservations. Of note, the S&P 500 is still down over 7 percent from its all-time closing high reached on December 29, 2021.  Certainly, the S&P 500 could hit a new high as part of this rally.  But it would be short-lived. There are a number of factors at pla ..read more

Much of legislative activity is grossly overcomplicated.  This is because honest governance is missing from the process. The simple and honest way to put headspace between the debt and the debt ceiling is to run a budget surplus and use the excess to pay down the debt.  The politics of the moment make this impossible. Unless something radical happens, the Senate will soon pass the debt ceiling bill.  Perhaps by the time you read this, it has already happened.  Are you happy? You shouldn’t be.  Not if you believe in small, limited government, greater freedom and autonom ..read more