Inflation Is Here for the Long Run – and it’s increasingly a bummer for American households

Welcome to Biden-Flation

The share of U.S. adults telling pollsters at Gallup that they are experiencing financial hardship because of inflation climbed to 61 percent in the most recent survey, up from 56 percent in the August and November survey. The share saying they are experiencing severe hardship has held steady at around 15 percent; so, the increase comes from those saying they are experiencing moderate hardship.

It’s notable that the hardship of inflation has jumped even while inflation has retreated. The year-over-year increase in the consumer price index peaked at 9.1 percent way back in June, nearly 11 months ago. Yet the Gallup survey, which was conducted in mid-April, showed an increase in reported hardship. The simplest explanation for this is that it is not just the level of inflation that hurts but its duration. Continue reading

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Anderson: In the Event of an Official US Bankruptcy

The current known federal debt is $31.7 trillion according to the web site, US Debt Clock, which is about $94,726 for every man, woman, and child who are citizens as of April 24, 2023. Can you write a check right now made payable to the United States Treasury for the known share of the federal debt of each member of your family after liquidating the assets you own?

A report released by the St. Louis Federal Reserve Branch on March 6, 2023, stated a similar figure for the total known federal debt of about $31.4 trillion as of December 31, 2022. The federal debt size is so great, it can never be repaid in its current form. Continue reading

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Central bank gold demand reaches record high in first quarter

In the first quarter of the year, gold demand among central banks around the world reached record levels as investors see a mixed picture globally, said a report released this week by the World Gold Council.

Prices of the precious metal broke through the $2,000 per ounce barrier and are expected to reach record highs as a result of the prevailing uncertainty about the performance of the global economy this year. Continue reading

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Non serviam! Better to reign in Hell, than serve in Heaven.” ~ Satan

“The servant carries out the master’s will. The servant doesn’t tell the master what to do. The servant does not choose which tasks to perform for the master, nor does the servant suggest days or times when it would be convenient to serve the master. The servant’s function is to follow instructions. The master, on the other hand, gives directions. The master does not tell the servant to develop a vision that will guide the master. The master is the one with the vision; the servant’s task is to help fulfill the master’s purposes. Continue reading

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White House Begins to Cave to House Republicans on Debt Ceiling

President Joe Biden caved to Republicans and signaled that he could accept some reforms in a potential debt ceiling deal after months of refusing to negotiate any spending cuts or reforms.

White House and congressional staffers have wrangled over the details of a potential debt ceiling deal. Continue reading

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7 Companies Declare Bankruptcy Over Weekend in 15-Year Record

At least seven companies declared bankruptcy in the last 48 hours, a reported 15-year record.

Among the firms seeking Chapter 11 protection were digital media group Vice Media and — as reported here Monday (May 15) — private equity-backed healthcare firm Envision.

According to a Bloomberg News report, this was the largest number of bankruptcy filings recorded for a two-day stretch since at least 2008. Continue reading

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IRS Should Rebuild Trust, NOT Expand Responsibilities

When Congress passed the Inflation Reduction Act (IRA), it allocated $80 billion to modernize the IRS after the agency had been historically underfunded by Republicans for decades. These funds will help the IRS target billionaires and large corporations that avoid paying their fair share in taxes. It will also make Tax Day easier for Americans by upgrading decades-old computer systems and adequately staffing the agency’s help line. Continue reading

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What the debt ceiling standoff could mean for your retirement plans

A man enters the New York Stock Exchange on Wall Street in New York City on Friday.
Angela Weiss/AFP via Getty Images

President Biden is expected to meet with congressional leaders on Tuesday about the debt ceiling, with just about two weeks until the country could run out of money to pay its bills.

Economists and administration officials have warned that a potential default on the national debt — for the first in U.S. history — would amount to financial disaster, wreaking havoc on the domestic economy and rattling global markets, too.

“Our economy would fall into a significant recession,” Biden told reporters last week. “It would devastate retirement accounts, increase borrowing cost. According to Moody’s, nearly 8 million Americans would lose their jobs. And our international reputation would be damaged in the extreme.” Continue reading

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Dollar General in Deep Do-DO!

Dollar General’s troubles have snowballed into cluttered aisles and stores forced to close by fire marshals.

Employees tell us what went wrong.

Dollar General stores, such as this one in Maryland, are overrun with unpacked merchandise sitting in aisles. Workers have said cuts to their hours are part of the problem. Alex Bitter/Insider

It was Christmas in May in the back room of a Michigan Dollar General last year… Continue reading

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Dead Weight Debt

Every penny dropped atop the national debt causes it to weigh ever more heavily upon the body politic until it crushes our liberty.

Throughout medieval times until the early 18th century, one particularly excruciating European torture was peine forte et dure (French for “hard and forceful punishment”). The prisoner was bound, spread-eagled, face-up on the ground. A board was laid upon their torso, and heavy iron and stones were placed upon them until they ultimately asphyxiated. It could take several days for a victim to succumb. Continue reading

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