Author Topic: Political Economics  (Read 804135 times)

Crafty_Dog

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It ain't gonna be painless
« Reply #2300 on: March 26, 2023, 06:35:13 PM »
A couple of weeks ago I quoted some comments from Thomas Hoenig, a former president of the Kansas City Fed. They date from a few years ago:

“An entire economic system. Around a zero rate. Not only in the U.S. but globally. It’s massive. Now, think of the adjustment process to a new equilibrium at a higher rate. Do you think it’s costless? Do you think that no one will suffer? Do you think there won’t be winners and losers? No way. You have taken your economy and your economic system, and you’ve moved it to an artificially low zero rate. You’ve had people making investments on that basis, people not making investments on that basis, people speculating in new activities, people speculating on derivatives around that, and now you’re going to adjust it back? Well, good luck. It isn’t going to be costless.”

Mispricing money comes with consequences. And the longer that money is mispriced the more uncomfortable those consequences will be. We are now seeing what look to be the early stages of a long, painful period of readjustment.

This is contributing to the tough times now facing commercial real estate (specifically office buildings) a sector that, if things really go south, will be faced with consequences ranging from unknown unknowns, known unknowns, to known knowns. Few of the repercussions will be agreeable, as banks, non-banks, a number of major cities, and who knows who else are likely to discover.

Making matters worse is (or will be) the effect of Covid-19 — and the catastrophic response to it

G M

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Is he wrong?
« Reply #2301 on: March 26, 2023, 07:01:49 PM »



DougMacG

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higher prices, slower growth, fewer jobs, Bidenomics is nothing new, de Rugy
« Reply #2304 on: July 13, 2023, 09:28:21 PM »
Veronique de Rugy,  Reason.com
Senior research fellow at the Mercatus Center at George Mason University.

https://reason.com/2023/07/13/bidenomics-is-nothing-new/

'Bidenomics' Is Nothing New
It's a familiar program. And it will result in higher prices, slower growth, and fewer jobs.
VERONIQUE DE RUGY | 7.13.2023 11:00
Politics is sometimes little more than marketing. As evidence, behold the sudden use of the term "Bidenomics" by Democrats to describe administration policies of the past few years. Indeed, what's being branded as "new" is nothing but the same old program of big spending, big regulations, and big cronyism. The only difference is that it's on a much bigger scale.

The administration will need all the marketing it can get to sell these ideas, especially to a public that's been giving it approval ratings in the thirties. But no marketing effort should distract us from the economic realities of the past two years.

Begin with Bidenomics' hallmark: record spending. The president likes to claim he's cut the deficit, but his allies in a unified Democratic congress have enacted $5 trillion in new spending over the decade. In an old-fashioned move, they have put most of it on Uncle Sam's credit card rather than engaging in the politically unpopular move of paying with new taxes and spending offsets. As a result, annual budget deficits will grow over the next 10 years to around $3 trillion. For perspective, remember that just before the pandemic, the annual deficit was around $1 trillion.

This is no partisan argument. Looking at the spending trajectories under different presidents and Congresses, one realizes that this has been going on for a long time. Each administration and Congress irresponsibly outspends its predecessors, and each kicks the can down the road for future generations to deal with. This includes Republican presidents like Donald Trump and George W. Bush. Yet, this president took it to another level with an over-the-top embrace of the fiscal irresponsibility of the $2 trillion American Rescue Plan, which turned modest post-pandemic inflation into a 40-year inflation record.

If Bidenomics is about building up the middle class—as the president claims—it isn't cutting it. Since 2021, real wages have fallen every month. Unsurprisingly, the fight against inflation has raised interest rates and mortgage rates, putting pressure on millions of household budgets.

And while Bidenomics has allegedly created some 13.4 million new jobs, this number should be taken with a grain of salt. Most are what David Stockman, one of former President Ronald Reagan's budget directors, calls "born again jobs." That's because they aren't actually new—they are simply the product of reopening the economy after the terrible COVID-19 lockdowns. Many of the remaining jobs were created by the same inflationary infusion of cash that overheated the economy. This is nothing to brag about.

While few people (other than rabid ideologues) deny that most of the inflation surge was created by Biden and Congress' extravagant spending, some of it was the result of a continued comfort with constraining the available supply of goods and services. Take, for instance, the administration's early support for COVID-19 lockdowns and mandates coupled with its refusal to remove the Trump-era tariffs that were helping to keep prices elevated.

Further contributing to high prices is Biden's reversal of Trump's productive regulatory reforms and imposition of additional regulations. These include new environmental standards along with additional restrictions on the supply of energy and health care.

A Hoover Institution study of Bidenomics looked at the impact of taxes, regulations, and spending. The authors found that "in the long run, Biden's full agenda would reduce full time equivalent employment per person by 3 percent, the capital stock per person by about 15 percent, real GDP per capita by more than 8 percent, and real consumption per household by 7 percent." Meanwhile, the failure to reform immigration and address the crisis at the border deprives the labor market and employers of the additional workers they need to produce more.

There is one area, however, where Bidenomics has been extremely successful: favoritism. The administration's industrial policy has aggressively subsidized preferred industries such as semiconductors and electric cars, sheltered special interests from the accountability of consumers through mandates and bans, and boosted the fortunes of its union friends. Most of this took place under the cover of reviving the manufacturing sector and making long-term investments in sectors vital to our national well-being—and, of course, competing with China. As The Wall Street Journal's Andy Kessler noted, "All that's missing from his 'new Washington consensus' is Soviet-style Five Year Plans."

Bidenomics will make a few fat cats happy, but the result will be higher prices, slower growth, and fewer jobs. The rest of us will be left with a sour taste in our mouths, slimmer pocketbooks, and heightened worries for the future.
« Last Edit: July 14, 2023, 06:52:00 AM by DougMacG »

DougMacG

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Homelessness up 66% NYC, 88% Chicago, Bidenomics
« Reply #2305 on: July 14, 2023, 06:37:26 AM »
(Doug) Blue city, blue state, blue nation, what could go wrong? The more we spend, the worse it gets. They don't know how to govern and we don't seem to know how to beat them.
BTW, bookmark "confoundedinterest.net", Anthony B. Sanders, economist.
https://confoundedinterest.net/2023/07/13/bidenomics-nationwide-spike-in-family-homelessness-up-37-6-yoy-nyc-homeless-rate-up-66-4-yoy-chicago-up-82-2/

Berkeley Research Group
Anthony B. Sanders is Distinguished Professor of Real Estate Finance in the School of Business at George Mason University.
He has previously taught at the University of Chicago (Graduate School of Business) and The Ohio State University (Fisher College of Business). He served as director and head of Asset-backed and Mortgage-backed Securities Research at Deutsche Bank in New York City.
« Last Edit: July 14, 2023, 06:48:43 AM by DougMacG »

ccp

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Re: Political Economics
« Reply #2306 on: July 14, 2023, 07:12:29 AM »
I can't find it now but heard [Democrat] Jamie Dimon
on the Economist interview pointed out we can't keep spending and chasing with interest rate hikes

sooner or later the dominoes will crash....

or something to the effect

DougMacG

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The Biden Malaise, by Kim Strassel (WSJ)
« Reply #2307 on: July 18, 2023, 06:06:27 AM »
Buy one for yourself and one for your favorite Democrat.  The book is persuasive.  The point is prescient.

Her main point is similar to mine.  We've been here before and what we are doing now is not the answer to it.  Keynes is dead. You don't cure inflation with recession.  Money supply is half of it, easing the constraints on production, starting with energy, regulations and taxes make up the other essential part of it.

As one group's message says, unleash prosperity now!

https://www.wsj.com/articles/carter-biden-2024-presidential-election-primary-trump-inflation-war-ukraine-russia-regulation-agency-c79b9a04

Carter, Biden and American Malaise
A combination of domestic morass and bumbling leadership ties two presidents together across the decades.
By Kimberley A. Strassel
July 14, 2023 5:26 pm ET

Jimmy Carter lost the 1980 general election by a landslide to Ronald Reagan, so it's difficult to understand why Joe Biden continues to follow the Carter 'malaise' playbook today (07/15/22). Bettman via Getty Images/Shutterstock Composite: Mark Kelly
When Jimmy Carter ran for president, the first U.S. senator to endorse him was Delaware’s Joe Biden. Mr. Carter later wrote in his White House diary that the first-term Democrat had been his “most effective supporter during the 1976 campaign.” In 2021 Mr. Biden was the first president since Mr. Carter left office 40 years earlier to visit him in Plains, Ga. “Those guys love each other,” a former Biden aide told Maureen Dowd of the New York Times.

DougMacG

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Bidenomics, Industrial Production Down
« Reply #2308 on: July 18, 2023, 10:58:21 AM »

ccp

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Re: Political Economics
« Reply #2309 on: July 18, 2023, 01:15:31 PM »
"Industrial production down"

What happened to build back better ?

What about all that supposed investment in our industrial base ?

How can this be ?

Billions and billions later ? (down the sewer)

Crafty_Dog

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Re: Political Economics
« Reply #2310 on: July 19, 2023, 02:27:06 PM »
Trillions later.

DougMacG

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Your view of the Economy if you read the Atlantic
« Reply #2311 on: July 23, 2023, 06:24:04 AM »
Rose colored glasses?

https://www.theatlantic.com/ideas/archive/2023/07/us-economy-labor-market-inflation-housing/674790/?utm_source=msn

Excerpt below follows description of how great 1999 was and precedes admission of how people hate the Democrat made inflation disease:

Author is wife of Ezra Klein.

Note that much of the gains were in the Trump years.  Biden's pathetic rebound has taken until now to get back to those pre pandemic levels, with all the trillions wasted in the process.

Annie M. Lowrey, The Atlantic:

"I’m here to tell you that this is the best economy ever. Really. This year’s economy has now outpaced that of 1999, the previous best on record. It is growing more equitably than it has in years. American families are more financially secure and wealthier than they ever have been. Things are going great, I swear.

The labor market is flourishing, and not just for rich folks for once. The unemployment rate is at its lowest level in 60 years—jobs are more plentiful than they have been in a generation. Competition for workers has not only pushed earnings up—median household income is sitting near its brand-new high, one that is $6,000 higher than it was in the late 1990s. It has also pushed earnings up more for the lowest-paid workers than the highest-paid workers. The past three years have erased a quarter of the run-up in wage inequality created in the past four decades. Real wages for the lowest-paid workers are growing faster than they have since the 1960s. The country’s wage structure is getting more equal, not less. 

Arindrajit Dube, a labor economist studying this “unexpected” phenomenon, told me that the country’s “job ladder” had broken about 20 years ago: Workers in crappy jobs found themselves stuck in those crappy jobs, unable to move up. “Starting around 2018 or 2019, you start to see the tight labor market bring back some health and dynamism,” he told me. “People are making more changes. The Great Resignation, the Great Reshuffle, whatever you want to call it—it means the market is working better. And it’s allowing people to leave jobs that are really bad.” As a result, workers report feeling more satisfied with their jobs now than at any point since the 1980s, and 4 million more people have full-time jobs (and 1.6 million fewer people have part-time jobs) than before the pandemic.

Improvements in earnings, along with the stimulus payments the government made during the pandemic, have helped lift millions of families out of poverty. The child-poverty rate has fallen from 12.5 percent to just 5.2 percent over the past three years. That’s the lowest level ever recorded. The share of people living in deep poverty and near-poverty has declined, too, and food insecurity is at its lowest-ever rate.

Bigger paychecks are helping middle-class families buy houses and build wealth. The homeownership rate was increasing faster than it ever had, until interest rates spiked a year ago; families in the lower half of the income distribution are more likely to own their homes now than at any point since the real-estate bubble burst in 2006. Most Millennials own property; the generation is starting to catch up with Gen Xers and Boomers in terms of net worth and household formation.

The economy has also delivered extraordinary gains for Black Americans. The jobless rate for Black workers is near a historic low, and the gap between the unemployment rate for white workers and Black workers is the smallest it has ever been. Black workers’ earnings are increasing rapidly too.

Measured in all sorts of more esoteric ways, American families are doing the best they ever have. The delinquency rate on loans is the lowest it has ever been. Real disposable income is the highest it has ever been. The personal-bankruptcy rate is at an all-time low."


(Doug)  Then she gets to inflation, but never mentions highest wrong direction numbers in history, which completely blows her 1999 comparison.
« Last Edit: July 23, 2023, 06:30:38 AM by DougMacG »

ccp

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Re: Political Economics
« Reply #2312 on: July 23, 2023, 09:10:09 AM »
"The economy has also delivered extraordinary gains for Black Americans. The jobless rate for Black workers is near a historic low, "

was not THE lowest under Trump ?

(not mentioned )

Crafty_Dog

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Re: Political Economics
« Reply #2313 on: July 24, 2023, 05:54:53 AM »
which I would rephrase as "returning to the historically low rates achieved under Trump"-- with the difference being that under Trump real wages were increasing and under Biden they are decreasing.


Crafty_Dog

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GPF: Labor Force
« Reply #2314 on: August 01, 2023, 09:00:36 AM »


   
US Labor Market Challenges
Some states have experienced better outcomes than others.
By: Geopolitical Futures
America's Labor Shortage
(click to enlarge)

The U.S. labor market is still adjusting to the realities of the global economy. Currently, there are 75 workers per 100 available jobs. Early retirements, family care responsibilities, decreased immigration and a mismatch of skill sets (Narc: !!!) have all contributed to a deficit of workers in the country. Despite the presumption that the "Great Resignation" has run its course, quitting rates remain high, particularly in the hospitality, retail and business services sectors.

Some states have experienced better outcomes than others. Rural areas across the Great Plains, parts of the Rocky Mountains and the extreme northeast face the most severe worker shortages. Interestingly, New York, Nevada and California stand out as exceptions to the worker shortage trend, as they actually have a labor surplus. Job creation has also been uneven. Georgia, Colorado, New Mexico and Nevada saw the most significant increase in job openings. Their job openings rose by 70 percent or more from February 2020 to June 2023, while the national average for that period was 41 percent.

DougMacG

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Political Economics, Staflation, CBO
« Reply #2315 on: August 06, 2023, 10:43:23 AM »
CBO projects 2023 (real) growth at 0.1%.

https://www.cbo.gov/publication/58957#:~:text=For%202023%20as%20a%20whole,to%20declines%20in%20interest%20rates.

This is dated February 2023.  Reported growth has been around 2% this year, half what it should be IMHO.

Price increases / inflation is the curve ball, and the different ways of measuring that.

The V shaped recovery coming of COVID ended with the change of administration..

Those who argue things are fine or better have 3 things in common, they are invested politically in the status quo, they don't work so-called blue collar jobs and they don't mention skyrocketing credit card debt:

https://thehill.com/business/personal-finance/4023009-americans-owe-1-trillion-in-credit-card-debt/#:~:text=The%20nation's%20credit%20card%20debt,at%20the%20end%20of%202022.

NO ONE runs up high interest unpaid credit card debt by choice.

Wrong direction leads right direction polling 65-25.

https://www.realclearpolitics.com/epolls/other/direction_of_country-902.html

Safe to say those 25% likely know better.
« Last Edit: August 06, 2023, 10:59:27 AM by DougMacG »

DougMacG

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Political Economics, Inflation versus price increases, liars and propogandists
« Reply #2316 on: August 11, 2023, 08:51:38 AM »
Credit to Crafty for pointing out there is a distinction difference between price increases and inflation.  It all gets blurred, even when the experts talk. In this case, especially and intentionally when the experts talk.

https://www.breitbart.com/clips/2023/08/10/deputy-treasury-secy-weve-seen-prices-come-down-inflation-keeps-coming-down/

A Biden Treasury official says prices are coming down and inflation is coming down. Complete, deceptive nonsense. 

Egg prices, for example, went from something like $2 to $4, now down to $1. That has to do with the market price mechanism adjusting for variations in supply and demand. If the price doubled or quadrupled during  "9% inflation", that wasn't inflation, that was (mostly) a price change.

Gas price increases eased during the massive release from the strategic petroleum reserve, now going upward again in the face of our reserve being depleted and domestic production still being blocked.  That is the price mechanism working, but also inflationary in the sense of fewer goods relative to the money supply as we block energy and other production.

Inflation is more dollars chasing fewer goods and services in relative terms.  Inflation is a rate of change measure which by definition is calculus. In what other way do ordinary people speak in terms of calculus?  To the consumer, we see price increases; we don't see total money supply or total value of goods and services. Even the best economists can't measure these things accurately, just see relative indicators moving up or down.

The official says "prices are down and inflation is down", but "inflation down" means PRICES ARE STILL GOING UP AT AN UNACCEPTABLE RATE.  The 5% is ON TOP OF the 9% increase. It's not a 4% decrease or a 40% decrease, it's added on, cumulative and compounding. It's not calculus, it's arithmetic.  You don't need calculus or even junior high math to see it and feel it.

Real wages are down (4% nationwide) because the cost of living has risen faster than income.  That's a lot of people losing a lot of money to bad policies, squeezed to use credit card debt and make early 401k withdrawals to make ends meet.  That's a very bad sign!  They can't 'downsize' because small houses and small apartments have gone sky high too. The real world results of these policies are hurting a lot of people in very real ways.

Deceptive use of terms and statistics doesn't make any of that go away. Shame on them.
--------
2% inflation (and compounding) is criminal (figuratively), though it is the law of the land.  Isn't it unconstitutional, an intentional violation of:  "the validity of the public debt of the United States, authorized in law. ...
 shall not be questioned”?  Intentionally devaluing the debt is honoring the validity of our debts?  How so?

When you start with 2% inflation and double and triple that, almost any descriptor is not an overstatement, incompetent, immoral, unconstitutional, stupid, mass thievery * , etc.

 *  'Thievery, the action of stealing another person's property'... On a scale of trillions and trillions and trillions over decades and decades!  (And then they tax you on the increase!)

It would be nice (nation saving) if a leader / politician would explain this and offer a true and credible alternative in a way that captured the common sense of the majority of the people.
« Last Edit: August 11, 2023, 09:48:35 AM by DougMacG »

DougMacG

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Political Economics, Steve Moore moore, Everyone forgets about growth
« Reply #2317 on: August 11, 2023, 10:06:53 AM »
Everyone Is Forgetting About GROWTH

Everyone outside the White House is worried about the national debt, which is expected to accelerate from 100% of GDP today to nearly 200% over the next 30 years. But the standard forecast from the Congressional Budget Office is predicated on the assumption of 1.7% annual economic growth. But that’s way below the 3.2% average real growth rate of the U.S. economy from 1950-2005.

To borrow a phrase from JFK, when he was running for president in 1960: “We can do bettah.”

So what if we set a national priority to do everything humanly possible to make the economy grow at between 3 and 3.5%, not the anemic rate of growth CBO predicts? 

DougMacG

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Re: Political Economics, oops, food prices up some more
« Reply #2318 on: August 11, 2023, 12:24:57 PM »
https://hotair.com/karen-townsend/2023/08/11/bidenomics-food-prices-went-up-4-9-in-july-n570505

Since when do food prices go up in July?

Climate change?  No. Higher CO2 content, more moisture in the air, longer growing season, these things add up to more food production, not less.   

What then could be the reason?

Most obvious answer is that the production of food requires energy, lots of fossil fuels. Even the production of corn for ethanol fuel requires massive use of fossil fuel energy.  The war on energy is a war on food production, and a war on the consumer, seen not only in your gas and electric bills.
« Last Edit: August 11, 2023, 12:28:21 PM by DougMacG »

Crafty_Dog

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Re: Political Economics
« Reply #2319 on: August 11, 2023, 12:49:54 PM »
"Since when do food prices go up in July?"

Could the end of the Russian-Uke grain deal have a role here?

DougMacG

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Re: Political Economics
« Reply #2320 on: August 14, 2023, 12:11:29 PM »
Too bad John Maynard Keynes died in 1946. Maybe he would like to comment on Bidenomics.

In a time of alleged full employment we are spending 40% more than we take in.  But with a near zero growth rate, what what would we do to stimulate the economy, spend more?

Brain dead thinking.  Literally.

https://en.m.wikipedia.org/wiki/Keynesian_economics

Joe Biden:  "we're going to grow this economy from the bottom up and the middle out."

Please name one economist who knows what the f*** he is talking about.

You're not growing the economy. You're implementing every policy you can think of to stop economic growth.

ya

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Re: Political Economics
« Reply #2321 on: August 25, 2023, 03:57:07 AM »
1. I notice that US media has ignored the expansion of the BRICS group. Study the countries who got added and why. Looks like the global south wants to join, which means Africa, Latin America and many others. Global geopolitics and geoeconomics is changing. Unfortunately, Biden speeded up the process, by sanctioning Russia, particularly their bank reserves.

2. Very little coverage in the media, on India being the first to land on the South Pole of the Moon, along with a moon rover.

https://www.youtube.com/shorts/hDQuKfWMrpo


Crafty_Dog

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Re: Political Economics
« Reply #2322 on: August 25, 2023, 09:34:04 AM »
Yes, this is a deep trend that deserves our attention!

ya

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Re: Political Economics
« Reply #2323 on: August 26, 2023, 05:16:40 AM »
Even Ethiopia is speaking out.. The US better get its act together. Biden has been a failure. A multipolar world is in its early stages. Things change slowly, then suddenly.

https://twitter.com/jcokechukwu/status/1695327296381440205
« Last Edit: August 26, 2023, 05:18:41 AM by ya »

DougMacG

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Re: Political Economics
« Reply #2324 on: August 26, 2023, 08:36:43 AM »
I'm not able to follow the logic of BRICS. I get it that the US has been an unreliable (or absent) ally to India, that Latin American countries have reason to distrust the US, that African and Asian countries have a history of exploitation by Western Europe.  There are plenty of reasons to cherish their independence and sovereignty, and I prefer the world to be made up of local, consensual governments, not some form of one world government run by misguided western elites.

That said, to be drawn to Russia and China instead is insane, IMHO.  What independence (or prosperity) do the little states around Russia and China have?

Quoting the head of Eritrea regarding US, NATO, Russia, Ukraine,
"These suffocating and malicious policies are embellished by high-sounding phrases in order to claim the moral high ground.

I know it's more complicated than big country invaded small country, but isn't Putin (a BRICS leader) the one invading Ukraine, claiming moral high ground, using the supply of food and gas as a weapon?

I don't see Poland, Finland, Lithuania similarly flocking to the Russia versus the NATO, western Europe umbrella. And how are the China Belt and Road recipients doing?  (And the Xinjiang Uyghurs?)

US under the Biden regime runs our economy (and foreign policy) irresponsibly, risking the investments of those who tie to the dollar, and the trust of those who rely on us.  And that makes you turn to countries like Brazil. Argentina, Iran (and Russia, China) for safety and stability?  US can (theoretically) be turned around in one or two election cycles. How do you do that in Russia or China?

Sorry, I just don't get it.
---------
Some coverage here:
https://www.nytimes.com/2023/08/23/world/asia/brics-nations-new-members-expansion.html

BRICS Summit
What to Know
New Members Announced
Xi’s Pitch in Africa
Putin Tries to Rally Support
Global Interest Piqued
What to Know About the 6 Nations Invited to Join BRICS
Iran was the surprise among the countries invited to join the bloc of emerging economies. Saudi Arabia, the United Arab Emirates, Egypt, Argentina and Ethiopia were also tapped.

President Luiz Inácio Lula da Silva of Brazil, President Xi Jinping of China, President Cyril Ramaphosa of South Africa, Prime Minister Narendra Modi of India and Foreign Minister Sergey V. Lavrov of Russia sit at white and wood desks on a stage. Countries’ flags stand on either side of the stage, and a blue and white banner in the background reads “XV BRICS Summit.”
From left, President Luiz Inácio Lula da Silva of Brazil, President Xi Jinping of China, President Cyril Ramaphosa of South Africa, Prime Minister Narendra Modi of India and Foreign Minister Sergey V. Lavrov of Russia at the BRICS conference in Johannesburg on Thursday.Credit...Gianluigi Guercia/Agence France-Presse — Getty Images
By Farnaz Fassihi, Vivian Yee, Natalie Alcoba and Declan Walsh
With reporting from Cairo, Buenos Aires, New York, Jakarta and Johannesburg

Published Aug. 23, 2023
Updated Aug. 25, 2023
The five-nation group of emerging economies known as BRICS, which views itself as a counterweight to the West, has invited six more countries to join — most of them from the Middle East — during its summit in Johannesburg this week.

The choices by the current members — Brazil, Russia, India, China and South Africa — contained a few surprises, the biggest being the addition of Iran, which joined three other Middle Eastern states: Saudi Arabia, the United Arab Emirates and Egypt. Argentina and Ethiopia rounded out the half-dozen nations tapped for inclusion, while Indonesia, which was thought to be among the top candidates for admission, did not make the cut.

The expansion was a victory for China’s leader, Xi Jinping, who strongly backed the rapid addition of new members. But Prime Minister Narendra Modi of India was said to be concerned about adding nations close to Beijing; India and China have border disputes and tend to consider each other potential adversaries.

Here is a look at some of the new BRICS members.

Iran
Iran, which holds the world’s second-largest gas reserves and a quarter of the oil reserves in the Middle East, sought membership in BRICS to strengthen its economic and political ties with non-Western powers.

For the past few years, Iran has forged a deepening security and military partnership with Russia and bolstered its economic ties to China. The invitation to join BRICS was viewed by many as a reward.

Iran’s addition will almost undoubtedly increase geopolitical tensions with the West, which could make other current members of the bloc, like India, uncomfortable.

Iran’s economy, ranked the 22nd-largest in the world in 2022, has been plagued by inflation, slow growth and economic sanctions from the United States. But the country has stayed afloat by selling discounted oil to China, among other maneuvers. It has also diversified its economy away from oil and increased trade with BRICS members.

Image
Oil and gas infrastructure in southern Iran. Home to the world’s second-largest gas reserves, Iran is looking to strengthen its ties with non-Western powers.Credit...Solmaz Daryani for The New York Times
Mohammad Jamshidi, Iran’s vice president for politics, called the invitation to join BRICS a “historic achievement and a strategic victory.”

Saudi Arabia
The inclusion of Saudi Arabia and the United Arab Emirates, the Persian Gulf’s two biggest political and financial heavyweights and two of the world’s largest energy suppliers, is likely to give the bloc added heft in its quest to challenge the U.S.-dominated world order.

Both countries are longtime American allies who rely on the United States to protect them in a volatile region. But at the same time, both have chafed at the partnership in recent years, increasingly going their own way on issues like oil production, the war in Ukraine and their relationships with Iran and Syria — countries the United States would prefer to keep isolated.

Image
Prince Faisal bin Farhan, Saudi Arabia’s foreign minister, at a meeting during the BRICS meeting in Johannesburg on Thursday.Credit...Pool photo by Marco Longari
Speaking at the BRICS summit in South Africa on Thursday, the Saudi foreign minister, Prince Faisal bin Farhan, said his country and the BRICS members shared a strong belief in “respecting the independence and sovereignty of states, and not interfering in their affairs.”

Saudi Arabia sees joining the bloc as another step in its efforts to balance out its traditional partnerships with the United States and Europe with its largest trading partners in the East, China and India.

The Saudi foreign minister indicated that his country had not yet decided on whether to join BRICS. He said it appreciated the invitation but was waiting for more details from the group on the nature of membership.

“Based on that and after our internal deliberations, we will make the appropriate decision,” he told the local news media on Thursday.

United Arab Emirates
The Emirates, like Saudi Arabia, has sought a bigger leadership role in the Middle East in recent years, even when that meant diverging from American interests.

Despite counting on American security guarantees, the Emirati ruler, Sheikh Mohammed bin Zayed Al Nahyan, has cozied up to both Russia and China. He visited Russia twice over the past year to meet with its president, Vladimir V. Putin, and agreed to have the Emirati Air Force train with China’s this month.

Economically, too, the Emirates has thrived on non-Western relationships. The glitzy city-state of Dubai is flush with Russian money, oil and gold that found a home there after Western sanctions hit Russia following its invasion of Ukraine. Its trade with India and China has flourished.

Image
Dubai became a haven for Russians and Russian money after Western sanctions hit the country following the invasion of Ukraine.Credit...Andrea DiCenzo for The New York Times
The country still gets most of its weaponry from the United States, and analysts say it is not about to abandon the United States’ security umbrella anytime soon.

But officials have expressed frustration with what they see as the United States’ failure to protect the Persian Gulf from threats from Iran, which gulf countries believe has launched attacks on both the Emirates and its close partner, Saudi Arabia, in recent years. And they are skeptical that the American leadership is truly committed to the Middle East.

Those concerns were factors in the Emirati and Saudi decisions to reach separate détentes with Iran, their longtime regional nemesis, making it possible for the first time in years for all three countries to belong to the same bloc.

Argentina
Argentina has the third-largest economy in Latin America, after Brazil and Mexico. Its backers in BRICS include India; Brazil, its largest trading partner; and China, with which it has increasingly close financial ties.

President Alberto Fernández of Argentina said in a recorded address on Thursday that entrance into BRICS represented an economic opportunity for his country, which is mired in one of its worst financial crises in decades, with annual inflation surpassing 100 percent.

Image
A market in Buenos Aires. Annual inflation in Argentina has surpassed 100 percent.Credit...Luis Robayo/Agence France-Presse — Getty Images
Gabriel Merino, an international relations expert based in Buenos Aires, said admission into BRICS would reinforce important markets for Argentina and open new ones. It will also provide new financing avenues once the country gains admission into the BRICS’s New Development Bank.

Egypt
Egypt is one of the top recipients of American aid, but it has long maintained a strong relationship with Russia and has growing trade ties with China.

Its interest in weaning itself off American dependence strengthened over the last year and a half, as Egypt learned just how troublesome relying on the dollar can be. Russia’s invasion of Ukraine touched off a foreign currency crisis and then put the Egyptian economy in a tailspin.

Investors pulled billions of dollars out of Egypt in a panic, and crucial wheat and fuel imports, bought with dollars, soared in price. Some imports became scarce and prices rose.

The dollar shortage also made it harder for the country to repay its debts and forced it to devalue its currency steeply, worsening the pain for ordinary Egyptians.

Inside BRICS, Egypt could trade in local currency. It also hopes to attract more investment from member countries.

Ethiopia
Not long ago, Ethiopia was the rising star of Africa — one of the world’s fastest-growing economies, led by Abiy Ahmed, a dynamic young leader who had won a Nobel Peace Prize.

But two years of civil war in the Tigray region ruined most of that. The economy tanked, the United States cut trade privileges and suspended food aid to Ethiopia, and Mr. Abiy has struggled to hold together a volatile nation.

Although the Tigray conflict ended last November, Mr. Abiy’s forces have begun a new fight with powerful militias in another region.

Image
Prime Minister Abiy Ahmed of Ethiopia in 2019. A connection to other BRICS nations would potentially help the country rebuild after its civil war.Credit...Finbarr O'Reilly for The New York Times
For Mr. Abiy, BRICS offers an opportunity to move further from the American orbit. He is already closely allied to the Emirates, which provided crucial military support during the Tigray war.

And economically, Mr. Abiy needs foreign help to bolster Ethiopia’s flagging currency and to seek new investments: This week, his finance minister, Ahmed Shide, estimated it would cost $20 billion to rebuild from the Tigray war alone.
« Last Edit: August 26, 2023, 08:56:47 AM by DougMacG »

Crafty_Dog

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Zeihan
« Reply #2325 on: August 26, 2023, 02:05:04 PM »
My glib answer is that in one sense it is a specious bluff for negotiating leverage with the West.  More thoughtfully I would say it is also a search for lateral connections to lessen dependence on the West.

Here is Zeihan:

https://www.youtube.com/watch?v=7tG7hh-Vx2A&fbclid=IwAR3YshBMpTnpgsgniPVMrSA9Ycb7curmV6tVtblemuN78FTfELDB-Jcjh0Y
« Last Edit: August 26, 2023, 02:57:18 PM by Crafty_Dog »

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States that favor Biden and Dems faring worst economically
« Reply #2326 on: August 31, 2023, 06:14:52 AM »
https://unherd.com/thepost/americas-blue-states-are-faring-worst-under-joe-biden/

What does stagflation do for Dem core voter enthusiasm?

Don't worry, the mules will cast your vote if you don't?

Biden regime uses red state successes to get their national economic numbers up to near zero growth.

It sets the stage for a DeSantis-Newsom  debate.

What are the odds Newsom backs out?

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Defaults haven't been this high since, since,
« Reply #2328 on: September 06, 2023, 11:26:00 AM »
Defaults haven't been this high since ... Obama was president.

https://nypost.com/2023/09/04/credit-card-and-car-loan-defaults-hit-10-year-high-as-inflation-squeezes-families/

If only some forum on the internet could have warned us not to enact the stupid, counterproductive policies...
« Last Edit: September 06, 2023, 12:53:42 PM by DougMacG »

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The party and policies of poverty
« Reply #2329 on: September 14, 2023, 05:38:01 AM »
This is from Steve Moore et al, CTUP.  They want to pin Biden withe the tag, poverty President, but the blame goes all the way up and down the Democrat Party in their anti-economic policies.
-----------------


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Unleash Prosperity Hotline
Issue #855
09/13/2023
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1) Biden Is The Poverty President

It’s almost laughable that just two weeks ago Biden was using his weird whisper to boast about the secret of Bidenomics: “It’s working.”

For whom, exactly?

Not poor people. The poverty measure soared in the new report for every measurable group. Old people. Blacks. Hispanics. Whites. Children. Single mothers. The child poverty rate more than doubled.
 


As the chart shows, this is a complete and tragic reversal from the Trump years when poverty fell to its lowest level EVER recorded.

And Bidenomics has surely not worked for middle-income Americans. Median household income has fallen by nearly $3,000 since Trump came into office.

DougMacG

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Biggest drop in real income since, since ...
« Reply #2330 on: September 17, 2023, 06:50:18 AM »
Biggest drop in real income since the previous Obama Biden administration, 2010.

The financial crisis was 2008.  Why did income fall two years later?

COVID crisis was 2020.  Why did incomes fall two years later.

Find out what's causing that and stop doing it.

Instead, what will be their campaign slogan, stay the course, more of the same, give the great Marxist policies more time to work?

Good grief we are collectively stupid choosing the policies of decline.

As an aside, every illegal border crosser coming in with reported, taxable income under 75k(?), and there have been tens of millions of them, brings down the median income in the country.  I wonder if any of Joe's treasonous, anti-American advisers told him that would happen, and that his name and Presidency would be synonymous with American decline.

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Political economics, The surge of migrants hurts low-income Americans
« Reply #2331 on: September 18, 2023, 12:25:16 PM »
The surge of migrants hurts low-income Americans.

   - Says Eric Adams, Democrat Mayor of NYC

https://nypost.com/2023/09/17/eric-adams-says-migrant-crisis-is-going-to-hurt-low-income-new-yorkers/

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10-year Treasury just hit a 16-year high of 4.5%
« Reply #2332 on: September 26, 2023, 02:49:50 PM »
10-year Treasury just hit a 16-year high of 4.5%

Source: US Department of the Treasury.

Besides the inexcusable, negligent deficits of the current budget years piling up more trillions of debt, the interest costs of servicing that debt on each dollar just tripled.  Not exaggerating, triple the interest cost on 33 trillion.

I never wanted to be a deficit hawk but what does it take to get people's attention on this?  Run deficits like this, massive debt, overspend by trillions year after year only getting worse, spend 40% more than what's coming in, every minute, every day, something's got to give?  No.  Everything's got to give.

Our chance of balancing the budget just got more than 3 times harder and it was impossible before.

All of us knew". - Jim Clyburn D-SC
« Last Edit: September 26, 2023, 03:07:13 PM by DougMacG »

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NBC News poll shows GOP with largest-ever lead on the economy
« Reply #2333 on: September 26, 2023, 07:17:18 PM »
NBC News poll shows GOP with largest-ever lead on the economy.
nbcnews.com
https://www.nbcnews.com/meet-the-press/first-read/nbc-news-poll-shows-gop-largest-ever-lead-economy-rcna117330
« Last Edit: September 26, 2023, 07:26:45 PM by DougMacG »

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WSJ: America's long term labor crisis
« Reply #2334 on: September 27, 2023, 10:13:18 AM »
Why America Has a Long-Term Labor Crisis, in Six Charts
While the hot pandemic-era job market is cooling, it is set to remain tight for years
U.S. population by age and gender in 2000, 2010 and 2020
Animated chart showing U.S. population by age and gender, highlighting Baby Boomers aging out of the workforce.
MALE

FEMALE

100+

Baby boomers

90

80

70

60

AGE

50

40

30

20

10

0

3

2

1

0

1

2

3

MILLIONS

Note: Generational age defined by the Census Bureau

Source: Census Bureau
By Lauren WeberFollow
 and Alana PipeFollow
Sept. 25, 2023 5:30 am ET


The U.S. economy has been running, improbably, with an unemployment rate under 4% for nearly two years.

That isn’t just a holdover from pandemic bottlenecks, when employers let millions of people go and then struggled to find workers when demand roared back, economists and business leaders say. It is a storm that has been brewing for decades, flaring up most recently in the form of labor fights at automakers and airlines. Labor shortages are turning into a long-term labor crisis that could push wages and turnover higher.

Work experts have warned for years that the combination of baby boomer retirements, low birthrates, shifting immigration policies and changing worker preferences is leaving U.S. employers with too few workers to fill job openings. While the labor market is softening, none of those factors are expected to change dramatically in the coming years.

RECESSION
2009
'10
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%
“It is a talent supply chain and you have to think about it that way, except in this case, talent has a choice,” said Teresa Carroll, chief executive of Magnit, a firm that manages temp, contract and freelance workers for companies. Workers are choosing arrangements such as part-time, flexible or remote work, prompting employers to adapt to fill roles.

Total employment will grow about 0.3% a year until 2032, the Labor Department recently projected, much slower than the 1.2% rate over the past decade, largely because of population constraints. That will contribute to slower growth in gross domestic product, the agency said.

The baby boomers were the largest generation of Americans, with 76 million children born between 1946 and 1964. They currently range in age from 58 to 77. By the end of 2028, even the youngest living baby boomers will have reached the average retirement age of approximately 64.

ADVERTISEMENT

1960
'70
'10
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'80
'90
2000
0
5
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The next largest generation, millennials, numbered 62 million births in the U.S. from 1981 to 1996, per the Pew Research Center, but has grown because of immigration.

Baby boomers, who had been on a steady trend of working more years, pulled back during the pandemic. Many retired and haven’t returned.

The U.S. birthrate—the number of births per 1,000 people—has been falling for decades, declining by about half since the 1960s.

The share of people living in the U.S. who are in the labor force peaked at 67.3% in the first three months of 2000, when the oldest baby boomers were 54 years old and the youngest were 35. It helped that the U.S. was in the midst of an economic expansion, the first dot-com boom.

RECESSION
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Participation hasn’t fully recovered from pandemic-era losses, though there have been signs of growth for prime-age workers—those between ages 25 and 54. The overall participation rate is expected to drop to 60.4% in 2032, according to the Labor Department, mainly because of baby boomer retirements.

Wages reflect supply and demand. They shot up during the pandemic recovery and have recently outpaced inflation, which gives workers more spending power. Long-term labor shortages could lead to a faster pace of wage growth for the foreseeable future.

John Fish, chairman and CEO of construction contractor Suffolk, said an aging workforce and fewer young people entering the industry are a combustible combination. “A carpenter now is making 20% to 25% more than they did 24 months ago, and that is not sustainable.”

ADVERTISEMENT

RECESSION
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'10
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$35
Filling the void
Labor shortages can be eased by funneling more people into the labor force or making the current workforce more productive. That can be done through immigration; outsourcing more work overseas; tapping underutilized labor pools such as people with disabilities and the formerly incarcerated; and improving productivity through automation, training and refining business and production processes.

Companies and countries have three options when it comes to managing a shortfall of workers, said Magnit’s Carroll. “They can plan for it, they can do nothing, or they can have hope. And to me, hope is not a strategy.”

As a general rule, an economy is able to grow about as quickly as its workforce expands, plus any gains in how productive the workforce is. Productivity is difficult to measure, and in the past few years, the numbers have been muddled by shocks from the pandemic. Overall, productivity growth has been mostly lackluster, rising about 1.4% a year over the past decade.

Generative AI tools such as ChatGPT could help, but the technology is too new to know exactly where large language models can be reliably applied in business or work settings.

2010
'15
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million
Offshoring, the scourge of the U.S. manufacturing workforce in the last decades of the 20th century, has lost favor with some business leaders after the pandemic highlighted the vulnerabilities of a global supply chain. Reshoring—bringing manufacturing back to the U.S.—is gathering momentum, backed by billions of dollars in government subsidies.

That leaves immigration. After falling during the pandemic because of Covid-related policies, immigration has come back strongly. But it remains a divisive issue, and business leaders say the lack of a coherent, stable policy is contributing to the labor problem. 

“If we don’t solve this with a thoughtful immigration program, we’re going to drive wage rates through the roof in the next two to three years because of the systemic shortfall of labor at the end of the day,” Fish said.

YOU MAY ALSO LIKE

TAP FOR SOUND
While some economists are optimistic as hiring booms, employees are actually working fewer hours. Usually, reducing working hours has been a reliable sign of incoming layoffs – and a possible recession. WSJ explains what it may mean moving forward. Illustration: Ryan Trefes
Write to Lauren Weber at Lauren.Weber@wsj.com and Alana Pipe at alana.pipe@wsj.com

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Political Economics, Are you f'ing kidding?
« Reply #2336 on: September 30, 2023, 03:01:18 PM »
https://archive.org/details/CNBC_20230929_130000_Squawk_on_the_Street

"We are on a sustainable fiscal path'

Biden economic adviser.
-----------
On Friday’s broadcast of CNBC’s “Squawk on the Street,” White House National Economic Council Director Lael Brainard asserted that we’re “on a sustainable fiscal path” due to the deal brokered between Congress and the White House on spending a few months ago and defended the spending on legislation passed by the Biden administration.
-------------
(Doug). We are spending 40% more than we take in.
« Last Edit: September 30, 2023, 03:07:24 PM by DougMacG »

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Re: Political Economics
« Reply #2337 on: October 01, 2023, 09:14:47 AM »
 "We are on a sustainable fiscal path'

me:

and the border is closed!
and racism , lynching , is rampant!

blacks and jews and gays are being slaughtered in the streets (by whites), hung from trees etc!
The Republican party is the party of the rich !
no problem with China!
people can be boys or girls or in between or neither at will!

Republicans are a danger to Democracy!

No proof Biden did anything wrong!

Application requirements for Feinstein's Senate seat - you must be Black and have a vagina !

There is no deep state!

I could go on, as we all can think of even more lies to add .

At least Jimmy Carter was honest!




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Salena Zito, stop telling us Bidenomics is working
« Reply #2338 on: October 03, 2023, 07:07:39 PM »
    https://www.theepochtimes.com/opinion/please-stop-telling-us-everything-is-fine-with-the-economy-it-is-not-5503128?utm_source=partner&utm_campaign=ZeroHedge

    Please Stop Telling Us Everything Is Fine With the Economy; It Is Not
    By Salena Zito.   10/3/2023
    ERIE, Pennsylvania—Two weeks ago, Nobel Prize-winning economist Paul Krugman told CNN anchor Christiane Amanpour there is a peculiar disconnect between how the economy is doing and how the public is feeling about it.

    Ms. Amanpour pressed him on why people weren’t understanding that they are living in a “sunny economy.” He had asserted that “the economy’s rebound has been surreally good,” yet people keep saying it is terrible.

    Mr. Krugman pointed to surveys and even some people’s behavior, noting robust discretionary spending on travel with hotels and restaurants, and was perplexed as to why people, as if all people were traveling, thought there was a problem.

    “We don’t really understand why this is happening ... (but) there is a real profound disconnect going on,” Mr. Krugman said.

    A few days earlier, “The View” co-host Joy Behar was strident in her assertion that everything was fine for all in our economy: “The economy is booming, inflation is down, the stock market is doing well, people are having an easier time putting bread on the table, etc. [President Joe Biden] doesn’t seem to be getting the credit for that.”

    She then asked whether people think because President Biden is old that the economy is bad.

    Huh? People think the economy is bad because they are paying, at least here in western Pennsylvania, $3.99 a gallon for gas, and in places such as Arizona, where the state now ranks seventh among the nation’s highest-paying markets, $4.69; last week alone it climbed by 14 cents a gallon. In Nevada, it jumped by a whopping 33 cents a gallon, with California coming in at a 29-cents-a-gallon jump.

    When gas prices rise, food prices rise. Has Mr. Krugman or Ms. Behar bought milk lately? A staple in almost every family’s home is now well over a dollar more a gallon than it was in 2021, with the average price at $4.31 per gallon for conventional whole milk, $4.26 per gallon for conventional reduced-fat 2 percent milk, $4.86 per half-gallon organic whole milk, and $4.86 per half-gallon organic reduced-fat 2 percent milk.

    And that is just one food staple. The USDA said this week that on top of the already escalated costs, all food prices are predicted soon to increase by another 5.8 percent, with a prediction interval of 5.4 percent to 6.2 percent.

    And food-away-from-home prices are predicted to increase by 7.1 percent, with a prediction interval of 6.9 percent to 7.4 percent.

    Ardell Martin, a retiree who lives on a fixed income, said her trips to the grocery store, a thing she used to enjoy, now fill her with dread.

    “Everything has gone up, and gone up a lot,” she said. “What irks me is that people keep telling us that everything is fine. Well, everything is not fine. When your income doesn’t change but the costs of basics keep going, your ability to find what you need shrinks because you cannot afford it.”

    Interviews with a number of voters across the political and economic spectrum find them frustrated by the Biden administration not understanding that by the administration’s measure, the economy is doing well, but for them, it is not.

    They are even more incensed when an economist or a Hollywood figure scolds them for not feeling good about something that has not trickled down to them. This week’s Reuters/Ipsos poll showed that the economy remained the public’s top concern, with 23 percent of respondents selecting it as “the most important problem facing the U.S. today.”

    U.S. inflation rates have been historically high during President Biden’s term, prompting central bankers to raise interest rates in a bid to
    tame prices. President Biden’s pitch saying “Bidenomics is about the future” and “Bidenomics is just another way of saying ‘restore the American Dream’ because it worked before” still isn’t resonating with voters, even ones who voted for him.

    Ms. Martin said she is frustrated by President Biden and everyone else telling her everything is OK: “He needs to walk in our shoes before telling us something is working.[/list]
    « Last Edit: October 03, 2023, 08:06:29 PM by DougMacG »

    ccp

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    Re: Political Economics
    « Reply #2339 on: October 03, 2023, 09:56:28 PM »
     "Nobel Prize-winning economist Paul Krugman told CNN anchor Christiane Amanpour "

     :roll: :roll: :roll:

    two massive snobs in a pod....


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    Re: New studies, pay people to not work and... who knew
    « Reply #2341 on: October 13, 2023, 05:06:56 AM »
    https://www.reviewjournal.com/opinion/editorials/editorial-when-you-pay-people-not-to-work-guess-what-2920714/

    They want $.99 from me to relay what Captain Obvious said. Am I correct to assume, Doug, paying people to be unproductive leads to unproduction?

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    A Nattering Nincompoop Sez Inflation is Over
    « Reply #2342 on: October 13, 2023, 11:49:17 AM »
    Krugman states if you are homeless, and don't eat or drive inflation is all but over:

    https://nypost.com/2023/10/13/ny-times-columnist-paul-krugman-mocked-for-saying-inflation-is-over/

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    Re: Political Economics, 18 charts, Bidenomics
    « Reply #2343 on: October 17, 2023, 09:08:36 AM »
    https://tippinsights.com/18-charts-provide-a-360-degree-view-of-bidens-lowest-approval-rating-in-office/

    Coming into Obama's re-election I would tease Dem friends with, is it his economic policies or his foreign policies you like best, all in sarcasm, both were in ruins.  And then he won.

    That said, all indicators point to a disaster for the incumbent and incumbent party - unless R's somehow screw it up.

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    Political Economics, Bidenomics defined
    « Reply #2344 on: October 17, 2023, 09:22:03 AM »
    massive accumulation of debt,

    raising taxes,

    growing government bureaucracy at an unprecedented rate,

    increasing government regulations,

    tampering with free enterprise,

    opening our borders, and

    crushing the middle class to finance the expansion of the ultra-wealthy and freeloader classes.

    https://www.americanthinker.com/articles/2023/10/i_am_all_for_calling_joes_policies_bidenomics.html

    Call it out and run against it.  In every race.  In every state.  And nationwide.  The whole world should run against this.

    Why do people think this election is just more of the same?  It's not.  We know more now than ever before about what they want and where it leads.

    ccp

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    Re: Political Economics
    « Reply #2345 on: October 17, 2023, 09:47:00 AM »
    "That said, all indicators point to a disaster for the incumbent and incumbent party - unless R's somehow screw it up."

    taken from other thread :

    ""If you're about to lose power and your people are mass wyou for your corruption, just start a war and everyone will forget about it immediately and still unify behind you. Oldest trick in the book."   


    that is why Biden wagged the tail in Israel !   :evil:
    « Last Edit: October 17, 2023, 09:48:37 AM by ccp »

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    Re: Political Economics
    « Reply #2346 on: October 17, 2023, 10:40:41 AM »
    Biden didn't start this war, but:
    his weakness was certainly a factor, and
    we don't see Americans taking any responsibility for the intelligence failures in all the hotspots.

    His military focus was on gender bs while the world sets ablaze. 

    Yes, this is economics.  Look at the costs.

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    Re: Political Economics, to the top
    « Reply #2347 on: October 17, 2023, 10:48:41 AM »
    Crafty posted earlier this year:

    "A couple of weeks ago I quoted some comments from Thomas Hoenig, a former president of the Kansas City Fed. They date from a few years ago:

    “An entire economic system. Around a zero rate. Not only in the U.S. but globally. It’s massive. Now, think of the adjustment process to a new equilibrium at a higher rate. Do you think it’s costless? Do you think that no one will suffer? Do you think there won’t be winners and losers? No way. You have taken your economy and your economic system, and you’ve moved it to an artificially low zero rate. You’ve had people making investments on that basis, people not making investments on that basis, people speculating in new activities, people speculating on derivatives around that, and now you’re going to adjust it back? Well, good luck. It isn’t going to be costless.”

    Mispricing money comes with consequences. And the longer that money is mispriced the more uncomfortable those consequences will be. We are now seeing what look to be the early stages of a long, painful period of readjustment
    .
    -----------
    (Doug). Understatement alert.  We don't want zero interest rates and we don't want them so high no one can afford money.

    A guy named Keynes wrote of how government needed to make adjustments to compensate for failures of the private sector, or something like that.  Good God, would he squirm in his grave if he saw where that led.

    And don't tell me fiscal and monetary policy are two different things.  It's all interconnected.
    « Last Edit: October 17, 2023, 10:51:53 AM by DougMacG »

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    Inflation hurts us more than we see
    « Reply #2348 on: October 19, 2023, 07:15:48 AM »
    The hidden price of inflation: High costs disrupt life in more ways than we can see
    Inflation forces people to invest less, spend time negotiating for raises and devote more energy to coping with rising prices.
    Paul Davidson.  USA TODAY

    High inflation doesn’t just leave you with less money in your wallet and struggling to pay bills.  It also imposes long-term costs on society and the economy by forcing consumers to invest less, negotiate wages more frequently and devote time and energy to coping with rapidly rising prices, according to a new paper by the Federal Reserve Bank of Cleveland.

    ...inflation imposes significant costs on society," the authors argue in the paper, titled “The Long-Run Costs of Higher inflation.”
    https://www.usatoday.com/story/money/2023/10/18/hidden-costs-of-inflation/71220144007/
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    Rep. Clyburn:  "All of us knew..."

    (Doug). All of you should be sued for reckless endangerment leading to death of an economy and a nation.
    « Last Edit: October 19, 2023, 07:39:36 AM by DougMacG »

    Body-by-Guinness

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    Environmentalists v. Everyone Else, Particularly those Most in Need
    « Reply #2349 on: October 21, 2023, 05:57:52 PM »
    Laws of the ‘70s are now hamstringing development now, with the enviro crowd pulling said strings and the poorest suffering most:

    https://www.cato.org/commentary/environmentalists-attempt-thwart-affordable-housing

    I’ll note I have my share of issues w/ Trump, but suspect his battles with this sort of stuff in NY played a role in his abrasiveness et al. And as far as these enviros, judges, and fellow travelers are involved … it must be nice to be so well off you don’t have to worry about benefits and costs.