Over one trillion dollars appropriated by Congress for the virus crisis is still unspent. Yet, the mentally challenged Joe Biden is crying he wants to spend another $1.9 trillion. Guess no one told him he has one trillion in graft money available for his friends, donors and special interests.
“One must ask: Is inflation coming to America? Or has inflation already begin?
Look at commodities, which are things that come out of the ground. Over the last 12 months, according to figures compiled by The Economist (Jan. 30, 2021), all commodities are up 39.6 percent over the last 12 months.
The Economist (same issue) reported that food is up 24.4 percent, gold is up 18.0 percent, and metals are up 55.6 percent. Down slightly is oil, which over the last year dropped 6.7 per cent.
Generally, when commodities increase in price, inflation is not far behind.
Please google Jimmy Carter and the era of massive inflation. Thanks to the trillions given by the last President and Congress we will have inflation. The Harris/Biden Administration is demanding the end of oil drilling and that we buy oil from terrorist nations instead. You have seen the cost of gas creep up the past couple of weeks—since January 20. America is going to compare the next four years to the Carter years. The good news is that Carter gave us eight years of Ronald Reagan. Can that type of Republican take back our nation in 2024. Let us hope so.
By Richard Colman, Exclusive to the California Political News and Views, 2/4/21
Venezuela is broke. So is Argentina. The United States is likely to be next.
Presidents Donald Trump and Joseph Biden have — or soon will have — left the United States poorer. And there is no sign that American economic power will be what is was in the 1990’s.
As of Feb. 2, 2021, the U.S. national debt reached nearly $28 trillion. Forty years ago (in 1981) the debt surpassed $1 trillion for the first time. How long can massive debt accumulation go on?
Nations — all nations — easily run up debt. Generally, the debt is financed by selling bonds. The buyers of bonds — sometimes called notes or bills — have to have strong assurance that bonds will be paid back with interest.
Any nation in debt has to pay interest on the entire debt.
But what happens if the buyer is not paid back? Alternatively, what happens if the buyer is paid back in inflated dollars, meaning that a buyer who bought a bond for $100 gets back $103? However, because of higher prices (inflation) the $103 paid to the buyer may only buy $98 worth of goods.
Right now, servicing America’s debt is fairly easy. Interest rates are low.
But interest rates are not likely to be low forever.
One must ask: Is inflation coming to America? Or has inflation already begin?
Look at commodities, which are things that come out of the ground. Over the last 12 months, according to figures compiled by The Economist (Jan. 30, 2021), all commodities are up 39.6 percent over the last 12 months.
The Economist (same issue) reported that food is up 24.4 percent, gold is up 18.0 percent, and metals are up 55.6 percent. Down slightly is oil, which over the last year dropped 6.7 per cent.
Generally, when commodities increase in price, inflation is not far behind.
Over the last year, the American dollar has been sinking against the British pound, the Japanese yen, the euro, and the Chinese yuan. When the dollar sinks, imported goods from foreign countries become more expensive. Think of it this way: How likely is an American consumer inclined to buy British goods that now cost $137 compared with a previous year, when the same goods cost $105?
At the national level, both the Democratic and Republican Parties are not paying attention to debt and to inflation.
Since 1981, debt, except during 1996-2000, when Bill Clinton was president and Newt Gingrich was speaker of the House of Representatives went down. (Gingrich resigned as speaker in late 1998.) During the Clinton/Gingrich era, the U.S. ran budget surpluses, and the national debt decreased. Clinton even talked about paying off the national debt by 2015. The last time there was no national debt was in 1837, when Andrew Jackson was president.
President Biden wants to increase federal-government spending (and the debt) by $1.9 trillion. On Feb. 1, 2021, the president met with a group of Republican senators who offered $618 billion in extra spending.
If Biden wants some sort of unity between Congressional Republicans and Democrats, Biden should accept the Republican senators’ offer or make some sort of compromise.
For Americans getting government money, there should be a stipulation that any recipient of taxpayers’ funds must work, perhaps on an infrastructure project.
The United States cannot go on spending money recklessly. If the U.S. does not curb excessive spending, the result is likely to be inflation.
It’s time to end the Trump/Biden era of mishandling money.
