The Great Egghead Caper

Posted on February 19, 2021 by MN Gordon

“Where the hell are we?” – President Joe Biden, February 16, 2021

Highway to Hell

The President asked a most important question.  So we’ll offer the puzzled fellow an answer…

We – as in the USA – are hurtling down the highway to hell.  The state of the union is chaos.  America’s finances are completely out of control.

Spending is rapidly outpacing revenue.  Debts and deficits are mushrooming like mold spores on wet drywall.  Rot and decay have set in.  The nation’s structural foundations have fallen into irreversible disrepair.

Don’t believe us?

According to the recently published Congressional Budget Office (CBO), Budget and Economic Outlook: 2021 to 2031, America’s broker than broke.  For example, the CBO projects a federal budget deficit of $2.3 trillion in 2021.  At 10.3 percent of gross domestic product (GDP), the deficit in 2021 would be the second largest since 1945, exceeded only by the 14.9 percent shortfall recorded last year. Continue reading →

Posted in Government Debt, MN Gordon | Tagged , , , , | 23 Comments

By Big Government For Big Government

Posted on February 12, 2021 by MN Gordon

One of the notable byproducts of the current age of unreason is the popularity of lies as a matter of public policy.  We’ll clarify this claim in just a moment.  But first, some context is in order…

On Wednesday, the Bureau of Labor Statistics reported that the Consumer Price Index (CPI) increased 0.3 percent in January.  Not bad, so long as you didn’t have to drive anywhere.  If you did, you may have noticed your dollars didn’t get you as far.  The gasoline index increased 7.4 percent in January.

What’s going on?

Over the last 10-months the price of oil has quietly recovered from an extreme negative in April of 2020 to over $58 for a barrel of West Texas Intermediate (WTI) crude.  And the UN Food and Agriculture Organization’s food price index is at its highest level since July 2014.  The main factors contributing to its rise are increases in grain prices.

Our hunch is that consumer prices will rise much further and faster in 2021 than the bean counters at the Bureau of Labor Statistics anticipate. Continue reading →

Posted in Government Debt, MN Gordon | Tagged , , , , | 25 Comments

Did You Make Janet Yellen Rich?

Posted on February 5, 2021 by MN Gordon

Up until the WallStreetBets crowd short squeezed Melvin Capital for a $7 billion loss, Robinhood had it made.  But losing billions is stressful.  And when your product blows up your customer the clucking that follows comes hot and heavy.

One of the sweetest displays in the world, we’ve been told, is the bursts of digital confetti that shower down Robinhood’s investment app to celebrate the purchase of stocks, options, and cryptocurrencies.  These digital confetti bursts – in addition to spinning prices and scratch off rewards – are great entertainment.  So, too, is watching the price of bitcoin quoted in neon pink.  It just screams buy!

Trading on Robinhood is designed to be both fun and exciting.  There are even freebie alerts.  It’s like playing Candy Crush.  Only the score is kept in dollars and cents.  And with a little practice you can strike it rich.

The clucking for Robinhood CEO, Vlad Tenev, began on Thursday, January 28, at 3:30 am Pacific Time.  That’s when the National Securities Clearing Corporation (NSCC) informed his company that it had to put up $3 billion. Continue reading →

Posted in MN Gordon, Stock Market | Tagged , , , , , | 13 Comments

Has Joe Biden Lost His Mind?

Posted on January 29, 2021 by MN Gordon

Are you an accidental dependent of Washington?  Many people are.  And many people don’t even realize it.

Systems of elaborate folly have been erected with the most impossible of promises.  That wealth can be created without production.  That stimmy checks can be paid without taxes.  That everyone can get free solar power at the expense of their neighbors.

Central to these promises are the central government and central planning authorities.  They promise ease and comfort and, in return, they make you a dependent.  They promise a secure retirement, and free drugs, while running a scheme that’s beyond Charles Ponzi’s wildest dreams.

Social Security, no doubt, is a tempting idea.  The government confiscates part of your paycheck every two weeks.  Then, in return, and after putting in 45 years, your retirement is subsidized.  You can enjoy your golden years in comfort. Continue reading →

Posted in Government Debt, MN Gordon | Tagged , , , , | 26 Comments