23 Comments

Most of the recent Fed balance sheet expansion was under bankruptcy bro Trump.

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

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One might think government revenues will bring a rather steep decline as taxable capital gains decrease, but outlays will continue their rise. The end of MMT arrives as interest on the debt dominates future outlays. Worse, that fact is worldwide affecting neatly every government and results in an even stronger dollar. Yet our primo exports of food and energy are being reduced.

Not sure how Congress can deal with this and structurally we are in a very bad place. This recession will likely be much longer and deeper than many in the past. Worse, it will likely be worldwide.

Cutting back to necessities and increasing taxes may be the only solution and will be wildly unpopular. Our politicians have squandered a lot to their favored donors and the public will not be happy with any of them. Very hard decisions ahead with little confidence in this administration to deal with that.

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Has Brandon cleared this with the giant bunny yet?

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Much of the economic stress was initiated with COVID and piled on by trump and Biden's attempt to right the ship. The attack on Ukraine exacerbated the world inflation and the negative propaganda constantly hurled from the right erodes market confidence in the public but high rollers are doing quite well. It is time to quit complaining , work to produce our own"stuff"and show the world and ourselves what some American effort can do.

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Biden and Democrats are destroying the middle class by inflation, critical race indoctrination and illegal immigration.

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