Pre-2020 Prices are Gone Forever

Posted on November 12, 2021 by MN Gordon

Price inflation is completely out of hand.  You know this.  Your dog knows it too.

Still, President Joe Biden wants you to believe he’s got it all under control.  Last month, for example, White House Press Secretary Jen Psaki insisted inflation is decreasing.  What a crock!

That was about the time White House chief of staff Ron Klain – an absolute goober – endorsed Jason Furman’s claim that America’s inflation and supply chain problems only affect a small part of the U.S. population.  Furman, a former Obama administration economist and economics professor at Harvard University, also tweeted that “most of the economic problems we’re facing … are high class problems.”

Ivory tower thinking like this has turned Washington into a land of idiots.  The elites are completely detached from reality.  And their policies are wreaking havoc on working class and middle class Americans.  We can’t change this.  But we can revel in what it represents… Continue reading →

Posted in Inflation, MN Gordon | Tagged , , , , | 63 Comments

Are You Vulnerable to Physical Violence?

Posted on November 5, 2021 by MN Gordon

The U.S. government’s 2021 fiscal year came and went like Dow 36,000.

With respect to the latter, authors James Glassman and Kevin Hassett were only off by 17 years in their 1999 forecast of Dow 36,000 by 2005.  At this point, the attainment of their prediction is a giant letdown.

With respect to the former, we have a question: Does President Biden have any idea that the government he pretends to oversee is skirting the edge of insolvency?

Most Americans, like Biden, could care less about how the fiscal year’s final ledger tallied.  Three generations of budget deficits without pain have spread complacency about the ability of Americans to consume without paying.  Deficits don’t matter to voters.

Presently, only conspiracy theorists and wackos still place any importance on the archaic practice of government accounting.  Why bother, when you can buy shares of Tesla and hold on for the end of the world?

In case you missed it – and actually care – here are a couple of the high points and low points… Continue reading →

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

Bidenvilles for Christmas

Posted on October 29, 2021 by MN Gordon

“I used to be a conspiracy theorist.  But then all the conspiracies I followed turned out to be true.”

The remark was made by a friend and Wealth Prism Letter subscriber over a recent phone conversation.  We’ll have more on this in just a moment.  But first, some of what prompted the comment…

Here in the land of fruits and nuts things have always been a little whacky and wild.  The people and the politics in the state’s urban centers have the uncanny ability to bring out the worst in each other.  The coronavirus travesty has only magnified these character failings.

For example, all the stimmy checks, generous unemployment payments, and eviction moratoriums have had a predictable outcome.  They’ve created a burgeoning class of people who would rather loaf and invite their soul over plying their time and talents toward something gainful.

At 7.5 percent, California’s tied with Nevada for the highest unemployment rate in the country.  For perspective, the U.S. unemployment rate in September was 4.8 percent. Continue reading →

Posted in Economy, MN Gordon | Tagged , , , , | 35 Comments

Walking the Path of Self Destruction

Posted on October 22, 2021 by MN Gordon

Central planners have destroyed the future.  Today we walk the path of their self-destruction…

If you recall, fiscal and monetary policies employed to counter the effects of government mandated lockdowns were supposed to stimulate a self-sustaining economic boom.  Instead, these policies of extreme intervention have stimulated chaos and destruction.

The official inflation rate, as measured by the government’s consumer price index (CPI), is rising at an annualized clip of 5.4 percent.  But that’s nothing.  Alternative inflation rates, which better reflect what consumers are actually experiencing, are double and triple the official CPI.

At the same time, the economy appears to be slowing down…

According to the Atlanta Fed’s GDPNow forecasting model, as of October 19, real gross domestic product (GDP) growth in the third quarter of 2021 is estimated to be just 0.5 percent.  This is down from 1.2 percent on October 15, 6 percent in late August, and 14 percent in May. Continue reading →

Posted in Economy, MN Gordon | Tagged , , , , | 17 Comments