funny money and disinformation
A couple of articles showed up in this morning's headlines regarding the government's efforts
to downplay recession fears. Because politics.
A traditional definition of economic recession:
Two straight quarters of economic contraction is typically viewed as a recession.
The GDP report is scheduled for release on Thursday and, following first-quarter contraction at an annual rate of 1.6%, the latest data may confirm that the economy is shrinking.
But US Treasury Secretary Janet Yellen has denied that the American economy is in recession.
This is not an economy that’s in recession, but we’re in a period of transition in which growth is slowing, and that’s necessary and appropriate,” Yellen said.
https://www.rt.com/news/559574-yellen-denies-us-recession/
OK then. It is, but it isn't. Just change the definition.
Also this ..
Nouriel Roubini says predictions for a mild recession are 'delusional' as severe financial crisis looms
Hopes for a mild recession are "delusional," said Nouriel Roubini, the economist who called the 2008 financial crisis.
He said debt ratios are historically high, while bailouts during the pandemic have resulted in "zombie corporations."
It runs contrary to what Wall Street banks like Goldman Sachs have been saying about the economy.
https://www.msn.com/en-us/money/markets/nouriel-roubini-says-predictions...
and this ..
The Treasury yield curve inversion is deepening as a key warning of a coming recession flashes its strongest signal since 2007
On Tuesday, a closely watched recession indicator gave its strongest signal since 2007.
An inverted yield curve between the 2 and 10 year Treasury notes has preceded recessions in 1990, 2001, and 2008.
Fed Chair Jerome Powell has shrugged off worries of an inverted yield curve.
Americans have plenty of savings and should keep spending, JPMorgan Asset Management has said.
https://markets.businessinsider.com/news/bonds/recession-outlook-treasur...
Who to believe? I certainly do not think most Americans have plenty of savings. At least all these financial gurus don't deny there is runaway inflation. That is too obvious.
Comments
So how to fix this mess?
US sees highest inflation in over 40 years
https://www.rt.com/business/558912-us-june-highest-inflation/
US recession whispers becoming a roar – Politico
Hmm, I wonder about the wisdom in this.
‘Nobody would choose this’
This article is somewhat associated to the topic.
A turnpike rest area and a van become home for one Maine family
https://www.pressherald.com/2022/07/24/nobody-would-choose-this-a-turnpi...
Maine is not the most expensive state in New England.
Economic collapse coming...
IMO. How will the Fed respond? Probably by cranking up the presses. Many think they are purposely collapsing the currency in order to justify the move to a digital Fed coin. Oh boy.
Real wealth is in land, reliable cars, precious metals, tools, and so on. Right now the USD is strong because it is the cleanest dirty shirt in the currency basket. Now is a good time to use that strength to your benefit. I've been buying a bit of bitcoin while it is so cheap - around 20K.
Another great irony is all the homelessness in the US and sending billion to Ukraine, a very corrupt country where you know most is being pocketed and some sent back to the pols in the states. That money could have ended homelessness here instead of promoting death and destruction. Additionally the sanctions have hurt the EU and the US. Such foolishness and waste!
We've always been tight about spending money. I squeeze a nickel so hard the Indian rides on the buffalo.
I do sometime spend frivolously. At trade day this morning I did buy a mountain dulcimer. A Sam Carroll 1982 five string all walnut. It is a beauty with nice carving and an unusual head stock. I paid $50. They normally sell for $400 - 600, so it was a good buy/investment. I need to tune it and learn how to play one again, but it is so pretty I may just use it as a wall hanger.
Take care and hope that ankle has healed!
“Until justice rolls down like water and righteousness like a mighty stream.”
Sacrilege:
remotely related example, kind of
be well and have a good one
That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --
Thanks lookout!
Hope your bush hogging worked out yesterday.
I've very little ways to hedge monies due to a dearth of spare change.
Buy tools, investing in the farm, working on equipment and eating well ..
Have been buying silver rounds on occasion. Beats savings accounts
https://sdbullion.com/silver/silver-rounds/1-oz-silver-rounds
Then, there's the great escape ..
good day mate!
Depression
Where I live in northwest Florida, it is more like a depression already. I am seriously considering filing for bankruptcy for a second time. I can't get ahead and neither can my adult children. I see people now living permanently in RV's and camping trailer out here in the unincorporated woods, but they are even trying to stop that. No one can afford housing. Rent is around $800.00 for a 1 bed. Minimum wage was raised to $10.00 last year. Even 2 people would have a hard time, then throw in a kid at $100.00 a week for daycare. Somethings going to give soon.
I agree it smells more like a depression
but the money masters don't seem to want to go there
they can hardly admit we are in a recession
when wages do not keep-up with inflation more will go
hungry, homeless and unable to afford health care
bankruptcy is an ugly alternative, but it seems built into
many folks financial strategies as a response to the lowering
value of the coin of the realm
meanwhile the politicians dither as to what is best for their
corporate sponsors. Bleed the plebes, milk the lackeys. No
concern for the well-being of the citizens. It is unlawful now to
be poor. Pitching a tent gets you fines and jail time for trespass,
debtor prison for the unwashed masses. Then you can work for
peanuts in some public/private slave operation. Behind bars.
This is not good. I wish you luck.
Good morning QMS. Quoting anybody like
Yellen. Powell, or ponzi salespeople like xyz asset management is always risible because they don't live here, they live else where.
sample microcosm:
50,000 with no savings
50,000 averaging a buck of savings
4 multimillionaires
total savings many millions, hence, americans have lots of savings.
be well and have a good one
That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --
J P Morgan
is the last place to get info from.
https://wallstreetonparade/.com/2022/07/federal-data-show-jpmorgan-chase-is by-far-the-riskiest-bank-in-the-us
Of course they want you to keep spending. It's all about debt, yours.
Neither Russia nor China is our enemy.
Neither Iran nor Venezuela are threatening America.
Cuba is a dead horse, stop beating it.
Yellins right.
And if we do have a recession it will be relatively mild...for the 1%. The 2007 meltdown lasted 7 months for Wall St. For the rest of us it lasted a decade, and for some it's still going on. The "correction" means the 99% will suffer. We always do. Economics is the "science" of why powerless people must suffer, gladly, to save the 1%.