The Truth About the Inflation Hamster Wheel
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All righty, America, enjoy your hamster wheel, because it’s not going anywhere at this point in time. Let me be honest with you. OK, what do I talk about hamster wheel? That’s the lives that we live here in this country at this point in time. What do I mean by that? Well, inflation. Inflation’s not going anywhere.
taxes as it stands looks like our taxes are going up and it’s going to be increasingly difficult for people to get ahead. Again, how many people out there have felt like the harder you work, the more time you put in, whatever it may be, it seems like you’re running to stand still. You’re on that hamster wheel.
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today. And again, I understand that these things are non starters for the most part, but let’s be honest here. We’ve gone from a $6.1 trillion budget to a $6.5 trillion budget. Now Joe Biden is putting the next budget at 7.3 trillion. 7.3 trillion next fiscal year. He wants to raise taxes on
people that make over $400,000 a year, and corporations, not people, you know, that’s families, couples, $400,000 a year. Let me be honest with everybody, I wrote about this many, many moons ago in regards to our fiscal situation and debt being our nation’s biggest crisis. It’s not Iran.
I remember at the time people were, you know, North Korea, Iran, Iraq. No, not now it’s, you know, what are we at? It’s Russia, China, maybe Iran. And now we’re talking about ISIS making resurgence in Afghanistan. None of those things are our biggest problem. Our biggest problem is the real existential crisis to take one from all of the leftists out there is our debt. Is our debt period the end?
You’re taking a look at what the Biden administration wants to do when it comes to social security and Medicare. And they want to raise people’s taxes. Want to raise people’s taxes in this budget and statements made by the Biden administration. Again, they allude to Donald Trump being a threat to democracy. The biggest threat to democracy, the biggest threat to this country, again, is our debt.
You take a look at some of the projections that the administration is making moving forward. It’s not positive. It’s much slower economic growth moving forward sub 2% moving forward that they think that inflation is going to get down to 2% which we all know is an absolute lie. It’s been a lie for a period of time. We’ve been, you know, we’ve taken on a role here.
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at the Watchdog on Wall Street, Joan Markowski investments, we take it on the role as, how shall I put it, reality. Telling you things that quite frankly are uncomfortable that you might not want to hear, you might not want to deal with, but it is reality. Spent a lot of time today going through some of these proposals and what they’re pushing.
Also, you take into account, you know, I mentioned we did the podcast on Donald Trump on CNBC and I, it was a great line here. I had to, I had to highlight it. Um, I wish I had thought of it. Um, it was from, um, lady by the name of Maya McGinnis. She’s the president of the committee for responsible federal budget. She pointed out that neither of the leading candidates, something that we point out all the time is doing enough.
to tackle our fiscal situation, to tackle the problems within the budget, to tackle social security and Medicare. And I wanna quote here, it’s nothing but politics. There needs to be discussion of the various trade-offs between the various options. The fact that we’re about to have a campaign, again, this is an echo of what we’ve been saying. We’re about to have a campaign.
where we are likely to have two nominees fighting against each other about who would do more to do nothing. To fix Social Security creates a huge mandate for doing nothing and doesn’t do anything to educate the country about what’s actually needed. I’m going to read that again because it’s spot on. We are about to have a campaign where we are likely to have two nominees.
fighting against each other about who would do more to do nothing to fix social security creates a huge mandate for doing nothing and doesn’t do anything to educate the country about what’s actually needed. You want to know where inflation comes from. Okay, we can talk here on the program. We’ve talked in the past here on the program. Obviously government regulations
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input costs, energy. You wanna know that the leading thing is, is the fact that we constantly have to print more and more and more money. Why? Well, I’ll give you $7.3 trillion. Why? That’s the size of our budget. Now, the Biden administration talks about fiscal responsibility and how they are going to lower. Cause this is when they put out these budget proposals, they’re based upon a 10 year timeframe.
They are going to lower the, we’re gonna lower the deficit in the next 10 years. I don’t want to lower the deficit. I don’t want a deficit. Deficit, if we had a balanced budget, our deficit would be zero. And this is the thing, they play America for fools. Well, because there’s a lot of fools out there. This says nothing about our debt. Zip, zero, zilch, and nada. The deficit is just, again.
yearly what we are spending more than we’re taking in and that number just gets added on to our national debt as we continue to pay interest on that which is exceeding a trillion dollars a year.
Again, what we should be doing right now is saying, we’re done, okay? All I know, Russia’s a threat, this one’s a threat, that one, you know what the biggest threat we have right now is our national debt. We are going to balance the budget, period, the end. We are not going to spend any more than we’re taking in, period, the end. But we’re not doing that. We’re talking about lowering.
lowering our deficit over a 10 year period of time, we’re still going backward.
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We are not solving the problem. We are making it worse as we go along. And their argument is, oh, it’s gonna be less worse?
That’s what we’re dealing with at this point in time. And…
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I wrote a column about this. It was that again, 2008, 2000, maybe 2000. I can’t even remember. I got to have to pull it up. Where actually I kind of it was kind of a joke. You know, make a thing. I wish I wished all of these countries around the globe would start. Stop buying our bonds and force us to live within our means. Again, something we told you, you finally get some.
people within the Federal Reserve, I don’t know how long before they get shut up about our fiscal situation. Last time our debt was as the share of GDP was this large was in 1945 to 1946 at the end of World War Two.
Yep, over the next three decades though, the debt to GDP ratio fell reaching 25% in 1975. More and more people are thinking that we are going to have a crisis within the next two to five years. And again, you talk about the 30 year decline contrasting, 30 year decline in our debt to GDP ratio post World War II.
You contrast that with the next 30 years going forward, an increase in our GDP ratio reaching 172%. That’s where we’re going. That this is according to the CBO and the CBO is always wrong on these things. It’s obviously gonna be much, much worse. Does that not frighten you? I guess most of the.
country doesn’t care. Today, you know, they’re talking about the long term inflation expectations and how they have risen. Again, three year range expectations rose point three percentage points to 2.75 year up to 2.9. And I’m here to tell you that that’s BS too.
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That’s a whole load of BS as well. It’s much, much worse than that. We all know this based upon what we’re paying for everyday items. And this is going prior to when inflation went parabolic and government numbers put inflation at close to 9%. And in fact, if you even take a look at the government numbers, the inflation numbers now, one of the reasons why it’s so low, it’s because of, I’m being honest, it’s because of all of the illegals.
that have come in and the amount of legals that we have working. If you actually take a look at the change in employment since June of 2018, there’s actually been zero job creation for native born workers since the summer of 2018. Foreign born workers, it’s skyrocketing. And again, that’s been helpful in getting wage inflation down. It would be much, much worse. Our numbers would be much, much worse than they are now.
Um, so again, when I talk about America, enjoy your hamster wheel.
You’re not getting off it.
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Again, unless there is a parabolic change in regards to who, you know, maybe this country wakes up and decides to put people into positions of power that will do something about it, it’s actually interesting right now is that, you know, who’s based upon polls, you know, they want to have as Senate Majority Leader, the country wants Rand Paul, guy who quite frankly should be president of the United States. If the country had half a brain, they would have voted for Rand Paul.
back in 2016, that would have been the choice. And if we go on to make it further, they would have voted for his father Ron Paul over Mitt Romney and Barack Obama. Just saying.
But again, the media is not even picking up on that because he is not an establishment type by any stretch in the imagination. They want a John Thune in there or John Cornyn that can fit their narrative. But again, I don’t want to tell you people, you have to prepare yourself. Again, I deal in reality. I talk about navigating financial storms and corrections. You can’t do a damn thing about inflation.
Can’t do a damn thing about inflation unless again, we start making some serious changes in Washington DC. The country is going to slowly but surely shift it. It’s been doing this for some time. Again, you might not like what I’m saying, okay, but it is what it is. Expect, expect again, more families are gonna be living together for longer periods. I’m already seeing this trend now.
There’s kids graduating from college, even ones that are having significant salaries, finding it difficult to even get ahead or make any sort of ends meet. If you’re gonna figure on seeing more extended families together, it’s an interesting story as well as the amount of parents that are still supporting their kids well on into later life. And I said that it’s tuned almost like $1,500, $1,600 a month post becoming an adult.
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at 18 years old. Expect more of the same, people. Families are gonna, again, families are gonna have to band together, they’re gonna have to work together because this is what you’re going to be dealing with.
You don’t, we do not have any leadership on these issues and we haven’t had them for some time. And again, the audacity of the President of the United States to come out with a ridiculous budget and tell us, Oh yeah, we’re reducing the deficit over 10 years.
What? I mean, you’re not dealing with the problem. You’re still spending more than you’re taking in. Again, both, you know, Donald Trump can only get one more term if he wins. Biden’s only got one more term. They’re not gonna have to deal with these serious issues down the pike. Again, it’s, I hate, I don’t wanna be Debbie Downer here on a Monday.
But these are themes, these are issues that I’ve talked about for some time. And again, be prepared for it. This is the real this is our train. I always talk about the reality of the terrain. This is the reality of our terrain. Plan accordingly. Watchdog on Wall Street dot com.
