Entries Tagged 'Economics and Investing' ↓

WORD OF THE DAY—QT (Quantitative Tightening)

If you are worried about what the Fed is doing in the future, it will probably follow Britain’s central bank and start using QT (Quantitative Tightening). QT is where the Feds will seek to sell off assets, (mainly bonds) from their balance sheet. This practice will affect corporations, stockholders and the bond market.

QT is what ultimately ended the 2007-2008 BIG RECESSION. By its end, the Fed had bought 9 trillion dollars on their balance sheet.

The BIG RECESSION occurred because the big financial markets didn’t have liquidity (the ability to buy and sell assets easily). So our Fed bought assets in order to save big corporations and banks.

If I recall right over 500 banks had closed their doors in 2007-2008. That was because giant banks, corporations, etc. had built humongous houses of cards. When the bubble burst on their so-called ‘insurance’ derivative IOU’s, they didn’t have enough money to cover their debts. Everyone was hurting. Continue reading →

WORD of the DAY – Runaway Inflation

Economics Has “Long Been Called “The Dismal Science”.

However, In My Opinion It Should Be Called “The “Magical Thinking Science”

So many calculus formulas and jargon words are mis-used to promote economic policies that seem nuts.

This week I’m using an example of “Wolf Street’s Stories behind Business, Finance & Money” post  about Runaway Inflation for their chock-full-of-data about how Economics really works.

Wolf defines this phrase. Runaway Inflation is when “‘Temporary’ inflation” (or a “spike in inflation” is suddenly called “Runaway Inflation”).

Wolf shows in an easy-to-see Eurostat chart that “Runaway Inflation” in the Eurozone jumped to 9.1% in August 2022, a percentage that in Europe hadn’t been seen since 1997.

Ignoring reality, back in mid-2021 our Fed announced that inflation was just temporary, and the ECB followed suit.

For decades while printing money, both our Central Banks and the Eurozone Countries Central Banks had been getting away with using a policy called “Negative-Interest-Rates”

The Central Banks in Europe and U.S. told their big money-market customers that even though their clients’ accounts were losing money, their customers were safer with them than with other kinds of assets.

Those Central Banks were accually claiming that going and staying below zero was gaining their customers some kind value – the value of peace of mind. Continue reading →

Ari Melber’s “Inside Trump’s Election Plot”

This show on MSNBC TV this month shows clearly how Donald Trump could have won the 2020 election on January Sixth.

1) COURT CASES Trying to get up to Supreme Court, Rudy Giuliani & Sidney Powell spearheaded fifty-seven frivolous cases for court – seven not heard, fifty others (2021)  – FAILED

2) FAKE ELECTORS  Scott Perry, PA Congressman, convinced Mark Meadows, Trump’s Chief of Staff,  to recruit slates of Fake Electors in Swing States (11/28) – FAILED

3) EASTMAN PLAN Student Law clerk to Justice Thomas & Professor, John Eastman urged GOP State legislators ignore the vote, & take over  results (“Legislative Override”) (12/7) – FAILED

4) MILITARY COUP  Peter Navarro, Michael Flynn, and Sidney Powell urged Trump to have military seize State voting machines (12/18) – FAILED

5) GREEN BAY SWEEP GOP gathered & locked out outsiders. Eastmans’s plan. 130 Congressmen & 8 Senators were ready to challenge votes on Jan. 6th – (12/31) – FAILED

6) LEGISLATURE OVERRIDE – Trump & Senator Graham phoned officials in Georgia to find Trump more votes and called on GOP State legislators to take power over votes – (1/2) FAILED

7) DOJ CONSPIRACY – Trump sought to fire Justice Dept. head & hired Jeffrey Clark attorney with no criminal expertise. Clark’s assistant sent letters to Swing States’ GOP to begin Legislative Overrides(1/3) FAILED

8) THE PENCE PLAN – Eastman designated VP Pence Green Bay Sweep Quarterback. Pence was badgered day and night to slow down the vote and substitute fake electors for the certification of votes (1/6) – FAILED

THE EVENING OF JANUARY SIXTH

When the Secret Service took President Trump back to the White house and he realized his rioters were not going to be able to win their battle with the police, Trump spent his last hours on January Sixth calling Rudy Giuliani and his loyal GOP Congressmen begging them to slow down the vote certification. But that was too late. Why? Donald had a Plan B deadline.

DONALD TRUMP’S PLAN B

By law if any of Donald Trump’s eight coup plans had managed to work to halt the vote certification it could have caused a Constitutional Crisis. In that case Congress would be called upon to vote to finish the certification a different way. Congress would have to vote State by State: each State having only 1 vote. Red states would win that vote over fewer Blue states in U.S. Donald Trump would have become President on January Seventh – SUCCESS