THE FED AND YOU

I, like some of the fortunate retirees, am on a fixed retirement dollar amount, am drawing Social Security and have a 401K for a savings and any emergencies, that I have thankfully not suffered, as a result of the pandemic. 

Black Americans are now at a 50% unemployment level and are taking a disproportionate share of the virus deaths.  The death rate highlights the inequality of health care in this country.  The wealthy are the least to suffer because they can social distance, work from home and have better health care services afforded to them.  This pandemic should wake up everyone, that the inequities are real for both black and the disadvantaged in America and everyone needs to listen.

The sugar high Impeached Trump has the economy on, will run its course and will crater either in the fall, if the 2^nd wave of the virus hits, or in January when no vaccine is actual proven to be effective?  Today’s precipitous drop of 1,800 points on the DOW shows someone is getting off the sugar high and are paying attention.

With magical thinking and a constant infusion of liquidity into the economy by the Fed (now that they have broken the dyke, allowing the Fed to purchase risky investments) the market, for the uninterested, does not know why the sugar high continues. 

Germany did the same thing after WWI. They printed trillions of Marks and as a result, they had no value.  Is the king of debt banking on the assumption, that potentially paying for monies owed can all be paid off cheaply with hyper-inflation? And would he sacrifice everyone else for himself?  Inflation hurts everyone except those in debt.

Trump fooled everyone with his tax bill of 2017, which gave the economy a trillion dollar annual debt forever.  This injected liquidity and gave a good economy turned over to Trump, a sugar boost that had executives buying back shares, and giving themselves pay increases.  Impact was seen with record highs for all the indices until it fell.  The virus caused the markets to crater in March and since then, the Fed has kept liquidity in the market with infusion of almost 7 trillion dollars.  Will his infusion create hyper-inflation due to insatiable demand, with all this liquidity and broken supply chains due to the virus hindering supply?

This move keeps the market on a high for at least the end of the year for Trump. Then what?  This election season the Republicans will point to what is only the health of the wealthy to be the health of the country as a whole.  Happy talk when you are convinced the markets are the economy. As for the party of stupid, good luck.  Will his magical thinking and money printing do the job to keep the donors happy?  This seems to be the goal of this impeached president.  Will the only tool left be the Fed purchasing debt? Who wins?  Who loses?  Who does the Fed bail out, and why that winner?  We are in a country I’m beginning not to recognize!

No matter the Fed’s moves, even they say the economy will not be at the same levels at year end. This can be seen in the CBO’s Economic Projections* for 2020 below.

2020             Annual $/%

Q1        Q2           Q3           Q4     2020

Real GDP (% change, annual rate) -3.5      -39.6        23.5        10.5          – $5.6 trillion

CBO unemployment rate (%) 3.8%      14.0%    16.0%       11.7%         11.4%

*CBO Congressional Budget Office an independent arm of congress used to support legislation

Numbers do not always agree with the current administrations take on the economy.

Take the 5.6 trillion dollar impact to the economy projected.  With a 21 trillion dollar initial projection for 2020, that is a 26.6% reduction in GDP and the market is at a high?  How can this be, without all the sugar cubes dished out to his friends?  No one seems to care about the projected national debt.  Republicans that are silent now should have their tongues removed when social security solvency and Medicare for all are discussed.

WEDNESDAY’S LASER POINTER

I normally do not follow the dotard in chief Impeached Donald J. Trump’s asinine tweets that are meant to distract and divide.  However the dotard’s AM tweet on the 10 of June that accused the 74 year old that was shoved down by the police of being ANTIFA I am making an exception.  Trump re-tweeted a Russian conspiracy theory that accused the man of having a police scanner-jamming device and he was a member of “ANTIFA”.

 The re-tweet by the Trump was not only offensive in that he accused someone without any evidence other than the Russian media claim, but was also very dangerous that someone may actually hunt him down and threaten to or kill him!  Why Donald??  Why would he re-tweet the vial lie.  Last week Republicans said that “ANTIFA” members should be hunted down and killed.  Was Trump attempting to support the actions of the Police? Did he know what the potential for his stupidity would be? 

Today “ANTIFA” or anti-fascist is an amorphous organization using the slogan as a counter to the abusive fascist and lawless police.  They are even known to be violent and have been linked by association to police shooting incidents.  Their ire is against the police, which is thought to stem from opposition to far right oppressive and brutal tactics used by the police.

Note: I am someone that is of the Classical European Anti-Fascist variety, being against the far right oppressive prelude to Nazi Germany that originated in the 1920’s when the original Anti-Fascist movement originated. 

Current day “ANTIFA” have drawn parallels to the actions that are being protested today.  The out of control militarized and all-powerful lawless police.

Irony abounds when the White House press secretary Kayleigh McEnany came out today and used the excuse that he was just asking questions about the incident to have a better understanding of what happened so the officers “would not be judged in the court of public opinion” Ok ninny, what about the victim of police assault?  Did he ask any questions about the victim? The individual whose life is now in danger?  The one that’s a pillar of the community?

Trump wants to declare the “ANTIFA” group (it has no organization) of today to be labeled as a terrorist organization.  Will that also apply to me, and anyone else that does not want fascism (the precursor to Nazi Germany) to permeate the governments thinking?

Did he even care if it divides, and distracts, and potentially has someone being hunted down and killed?  The tweet distracts from the 114,000 deaths and the potential, as a result of his pressures, to open causing an added 2^nd wave of the virus.  Ok, today a Harvard doctor predicted another 100,000 deaths by September 2020.  What will Trump’s excuse for not taking actions?  Is he prepared?  Will he take any preventative actions?

This was one sad tweet that could turn out to be deadly.  Only to distract, divide, endanger and upset. A foursome all in one tweet!  Mostly distract.

BUNKER MENTALITY

A funny thing happened when Trump cowered and dove into the bunker.  Mr. Brave “I’ve got bone spurs” insisted it was only for an inspection.  Mr. Barr his attorney General stated on TV that the secret service directed and escorted the Impeached Donald Trump, along with Melania and their son Barron in tow, as a results of rioting and tear gas on Friday 5 June.  Donald said it was only an inspection and not as a result of the protesters.  Who is lying?  I’m counting on Trump not wanting to look like a wimp and cowering in a bunker, with peaceful demonstrators and a few rioters outside.  Why would Barron and Melania be in tow?  The real question is why lie for no purpose?  Laser show having everyone saying something different? Why? Division? Distraction?