by confoundedinterest17
The 2020 Covid outbreak and the ensuing authorities shutdowns and college closures begat a Washington DC spending spree and Federal Reserve financial stimulus barrage not like something different time in historical past. Congress and Administrations like to spend different folks’s cash, however as Rahm Emanuel as soon as stated “You by no means let a critical disaster go to waste. And what I imply by that it’s a chance to do stuff you assume you possibly can not do earlier than” And wow, did they ever binge spend and broaden the M2 Cash provide. I name it “The Nice Dislocation” of the financial system and we by no means recovered from it.
Or as Ray Wylie Hubbard sang, “Ingesting with my low life companions, dancin’ with a lady who will not be my spouse.” This needs to be the theme music for Washington DC and their manic spending.
However after the large spending splurges and Fed financial stimultypto, The Fed lastly began withdrawing “the punch bowl” to fight inflation. M2 Cash development year-over-year (YoY) is now 0%. And with inflation, US common weekly earnings development YoY turned negativc and has been destructive for 21 straight months.
After the spending explosion underneath Pelosi/Schumer and Powell’s financial, M2 Cash velocity (GDP/M2 Cash) crashed to it lowest stage in historical past. So now we have now depressed cash velocity and no M2 cash development. And the US nonetheless has 21 straight months of destructive weekly earnings development.
However former Fed Chair and present Secretary of Treasury Janet Yellen is happy that inflation is FINALLY slowing which Yellen attributes to stress-free provide chains. Or is it declining M2 Cash development, Janet?
Now that the Federal authorities’s spending spree and The Fed’s financial stimulypto dislocated the US financial system, we’re headed for a recession with no ammunition left in The Fed’s arsenal.
In spite of everything. The Federal Reserve has been destroying shopper buying energy since 1913. And we could also be on the finish of The Fed’s financial rope.
Even worse, we have now Joe Biden as President, who curiously has been discovered to have labeled paperwork in his possession from when he was Vice President, no less than, at two areas (his Wilmington DL residence that his son Hunter had entry to and the now notorious Penn Biden Middle in Washington DC). Even worse, Biden seems to be talking to dead world leaders like Germany’s Schmidt and France’s Mitterand.
Figuring out Biden’s penchant for blatant mendacity and carelessness, I wouldn’t be stunned if it is a stack of labeled paperwork on the desk throughout his assembly with Treasury Secretary Janet Yellen.
Let’s hope Biden isn’t saying that he’s speaking to late Robert Kennedy, the previous US Legal professional Normal.