T Aquinas boosted

An economy consists of individuals exchanging goods and services. One party in an exchange has a relative surplus of goods and services that another party desires. The desire alleviates a sense of felt unease. At the time of the exchange both parties benefit otherwise the exchange wouldn't happen. Normal people don't seek harmful transactions. Exchange is entirely peaceful...unless you invite Uncle Sam.

T Aquinas boosted

Markets starting to get really ugly.

Comparing the state of markets now to the COVID 2020 lows is telling. Equities still look high relative, so I'm putting on more hedges (VIXY) to negate some long-equity risk.

Treasuries well below 2020 lows.
Corporate bonds below 2020 lows.
Euro 10% below 2020 lows.
Pound 8% below 2020 lows.
Equity volatility starting to rise.
Bond volatility above 2020 highs.

This is the point where certain things in markets begin to snap. Watch for credit to crack.

T Aquinas boosted

Winning Republicans run on economic issues, viz. ending the zillions of taxes with costly deaweight loss, reducing paperwork and regulation, etc.

Unaffiliated voters identify with economic struggle imposed by the government.

Republicans who pivot to social issues like marriage, what a person reads, or does with their private parts lead the unaffiliated middle to either reject or become uninterested in social issue Republicans. An unpleasant Cajun once said, "It's the economy, stupid."

US Federal Government Transfer Payments.

The scheme is; A takes an asset from B. B takes half of the transfer and gives it to C but B keeps half for "administrative costs." Are we mathematically better off as the left claims with government based transfer payment forced charity? What tangible increase in the net wealth of society exists compared to A simply giving C a fraction of his wealth wealth as charity? The government is simply a parasite seeking to enrich itself.

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The Myth of Austerity in the US:

Click to see.

The annual growth of federal non-defense expenditures corrected for inflation. This is real growth of expenditures which require real taxes, inflation, or indebtedness to accomplish. That means upward interest rate pressure, less money to invest in production, higher cost of capital in a country that has the most expensive capital in the industrialized world. It also means the dollar buys fewer goods or services. Why? Political vanity.

Personal Current Taxes... Government fueling poverty.

Jennifer Griffin won a "Freedom of the Media" award. I suggest the Cheney "War Monger of the Year" award.

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