A Few Thoughts On The Current Crisis

The national debt just passed $24 trillion, up $4 trillion since Donald Trump took office. He will add more debt in 4 years than Bush did in 8. If reelected he will add more debt in 8 years than Bush & Obama did in 16. Instead of draining the swamp, he is draining the nation.

What will the Federal Reserve do if inflation picks up?

Someone needs to ask Powell what the Fed’s response will be if inflation really heats up? Will the Fed do nothing and let inflation get much worse? Or will it jack interest rates way up and sell bonds to shirk the money supply? Is the Fed prepared to do this during a recession?

The problem with student loan forgiveness

The biggest problem with student loan forgiveness is the moral hazard for both students and colleges. Since loans don't have to be repaid, students won't care how much they borrow. Colleges will exploit this by raising tuition even fasting, sending the cost to taxpayers soaring.

This Rally Is All About The Fed!

U.S. stock market futures are rallying off the much larger than expected jump in weekly unemployment claims. This clearly shows that investors know where their bread is buttered. This rally is all about the Federal Reserve, and the worse the economy gets, the more money the Fed will print.

China Will Buy Oil, Not U.S. Treasuries

It looks like the Chinese are getting smarter, and will be buying oil instead of U.S. Treasuries. This is just the beginning, as soon the entire world will be buying real stuff instead of Treasuries. That means the Federal Reserve will buy more Treasuries as Americans buy a lot less stuff.