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

When Boom Turns Into Crack-Up Boom

Posted on January 22, 2021 by MN Gordon

Slow Joe Biden’s moving fast.  His parade of remarkable measures is marching in double time.  On Day 1 alone, the new President of the USA signed 15 executive orders and 2 executive agency directives.  Surely, he got writer’s cramp.  Here’s a partial summary of what all was covered…

By executive order, President Biden promises to save the environment by rejoining the Paris climate accord.  He also promises to weaken America’s energy security by terminating the Keystone XL pipeline.

In addition, Biden’s getting America mixed up with the World Health Organization again.  And to keep you safe, he’s ordered one hundred days of masking.

Biden’s a job creator too.  One of his orders established a position called the COVID-19 response coordinator.  We imagine the job has excellent benefits.

There’s also good news if you can’t pay your rent or mortgage.  Biden’s extended the moratorium on evictions and foreclosures until March 31, possibly longer.  And if you can’t pay back your student loans…no worries.  Biden’s extended the hold on student loan payments until at least September 30. Continue reading →

Posted in Economy, MN Gordon | Tagged , , , , | 27 Comments