The Brutal Truth About the Upcoming Stagflationary Simmer

Major U.S. stock market indexes continue to float along at or near all-time highs. The ride’s been both fun and exhilarating.

But stocks aren’t the only things floating at such incredibly lofty levels. Gas station signs and grocery store receipts show that everyday essentials are similarly expensive. These sky-high prices are less enjoyable.

For the wealthy, those who hold an abundance of stocks, real estate, and other appreciating assets, the economy has never been better. They get richer while they sleep.

However, for the average wage earner, the story is entirely different. For those having to make the difficult choice between filling up their gas tank just to get to work or filling up their family’s bellies, this economy absolutely blows.

The Consumer Price Index (CPI), which is fabricated to understate inflation, is even signaling that price increases continue unabated. The latest official CPI Report revealed that consumer prices increased at an annual rate of 3.8 percent in April.

This rate of inflation is certainly lower than the devastating 9.1 percent CPI peak hit back in June 2022. But make no mistake, prices are still going up every single month. What’s more, these relentless price increases are compounding on top of previous price increases, making them feel even heavier. Continue reading

Posted in Economy, MN Gordon | Tagged , , , , | Leave a comment

How Washington is Silently Tokenizing Your Bank Account

“Most Americans don’t realize they live under an expansive surveillance regime that likely violates their constitutional rights. Every purchase, deposit, and transaction, from the smallest Venmo payment for a coffee to a large hospital bill, creates a data point in a system that watches you—even if you’ve done nothing wrong.”

– Katie Haun, MIT Review

Have You Heard of the CLARITY Act?

If you missed it, you’re one among many. Reporting on the subject has been slim. No one wants to talk about it. Certainly, we don’t. But we will. Because it’s important.

We’re referring to the Digital Asset Market Clarity Act, or the CLARITY Act for short, which recently advanced out of the Senate Banking Committee via a 15 to 9 vote. The bill has already passed the House of Representatives and is getting queued up for a Senate vote.

Currently, Senate committee staff are merging the CLARITY Act framework with the companion Digital Commodity Intermediaries Act. The combined bill requires a full Senate floor vote and must survive conference reconciliation before heading to the President’s desk. Continue reading

Posted in Government Debt, MN Gordon | Tagged , , , , | 1 Comment

The Rapper and the Rolling Stone

Politicians and governments today generally rule from a government-knows-best model. They believe they can calibrate, modulate, and manage an entire economy from a comfy government desk.

From the price of eggs at your local grocery store to exactly how much the cashier gets paid, they want a finger in every pie. They raise a red pen against the private sector, convinced that with enough rules, regulations, and tax dollars, they can engineer a perfect society.

Quite frankly, we find it exhausting – and destructive too.

If the people are lucky, and after the micromanagers have made a big enough mess of things, a rare leader may come to power who believes in allowing the natural and self-correcting forces of the free market to order society. They cut the sprawling state down to size. They don’t pretend to know what’s best for you.

Instead, they step back, outline the government’s boundaries in chalk, and let the private sector do its thing. They trust that everyday people, guided by self-interest and the ever-changing signals of supply and demand, are way better at running the world than any politician. Continue reading

Posted in MN Gordon, Politics | Tagged , , , , , | Leave a comment

State Sponsored Suicide

“A great civilization is not conquered from without until it has destroyed itself from within.”

– Will and Ariel Durant, The Story of Civilization

Enemy Within

How does a superpower die?

Does it come from the blinding kill shot of a hypersonic missile streaking through the sky? Or, perhaps, a rogue cyberattack that mortally destroys the national power grid?

Will the end of America come with foreign tanks rolling through New York or a massive, coordinated amphibious attack on Los Angeles?

These dramatic scenarios make for captivating conjecture. But they’re highly unlikely. If you look at the autopsy reports of the world’s greatest empires, the ultimate cause of death is rarely a sudden, overwhelming external blow.

Long before the barbarians breached the gates of Rome, the Roman denarius had been systematically devalued into a glorified copper token to fund a bloated bureaucracy. This was characterized by widespread domestic corruption and endless military expansion. Continue reading

Posted in MN Gordon, Politics | Tagged , , , , | 5 Comments