Steve’s Barking; Deflated income for the upper middle class ( huh)

 It has come to my attention that there are many people being laid off in the tech industry, and these people are upper middle class. Now it’s also come to my attention that it appears that most of those who are laid off are getting new positions at lower pay. It is also come to my attention that those who have student loans well start to have to repay them, taking a bite out of their income? Now this might be all right but a major problem for the economy is that this is a large group that has a larger discretionary income, then those in the bottom and in the middle of a middle class. Now just maybe people going on trips who are on the upper middle class will have to hold back. Those in this group who intended to buy homes in all likelihood, will have to hold back and possibly those in this group. They have to hold back on goin to fine dining restaurants.(hmm) Will this to a crimp in the economy? Will this have a trickle down effect with lay offs  coming to the lower middle of income people? And if the lower middle income people have less or no disposable income it will it in all probability hurt the poor worker.

* The top dogs CEOs and owners are not effected and will not be effected for some times ( Though they may be later next year). And in fact appears to that there income ( or just there net worth appears to be going up.

** The poor workers income is going up but unfortunately there discretionary income has gone down or has stayed the same.

*** Why you have to look past the jobs report to see how the economy is doing for it doesn’t tell the whole story.

****  I know I don’t like calling any body middle class , but middle income…

Steve’s Barking; The Fed raising rates isn’t………

 The federal reserve raising rates isn’t…..

 Going to bring about one more egg

 Going to produce more grain

 Going to build one more house

 Going to have one more truck driver

 Going to unclog crowded ports

 Going to have one more ounce of oil

 Produce one more car

 Lower the price of land

* In our economic society if goods and services are diminished, you are going to have inflation. The feds raising rates isn’t gonna do a damn thing to stop inflation. What will the demand be there with less money? You betcha! In my opinion raising rates make a bad situation worse.

 

Steve’s Barking; Will high flying companies collapse

Will call companies like Amazon and Tesla collapse?  Hugh companies like Tesla and Amazon have a high chance of not being around by 2030. BS one might say. Why just last year their profits were soaring.Ah but there debt was also soaring. Tesla opened new factories on borrowed monies and Amazon borrows money to buy businesses. This was ok 👍🏾 when the country was running 🏃‍♂️ on free money ( real low interest rates). Net profits were up, now that interest rates are higher ( much) profits are going to be down if they exist a all. One can make a good case these high capitalized companies will be hemorrhaging money. Heaven help us if these companies can’t survive because of debt overload.

Steve’s Barking; Down turn in American 🇺🇸 economy, so what!

 I’m going to make this brief, if a company’s are making 30 % profit 3 quarters ago and 2 quarters ago made 28% profit and this quarter made 25% profit, yea that’s a down turn if it’s the majority of of American 🇺🇸 companies. That happens. Especially after earth 🌏 shattering events like wars, plagues etc. Let the markets do its things like it’s doing now and the ship 🚢 will strengthen it self out.

Steve’s Barking; Inflation self fulfilling prophecy ? 🤔

 Inflation in the US of A  is going through the roof. Now the Feds are raising money interest rates which in itself is a kind of inflation (?) because the price of money 💰 is costlier. 

 Now if you had turned on any of those businesses channels even a year ago they had people they would have demanded that the Fed raise interest rates or there is going to be inflation, well we have inflation and the Fed is raising interest rates.

 Prediction interest rates rising will not do anything to stop 🛑 inflation from rising, hopefully it will not make matters worse. This inflation isn’t do too to much $ money, but to few goods. 

 Let’s get real we need dock workers to to unload the cargo from overseas. We need to produce more oil and gas . We need more truck drivers (80,000 more)to deliver the goods. We need farmers all over he world especially in Africa and South America to produce more. We need our meat packing plants to have more workers. We need workers to make construction materials and workers for construction.

If you get my drift, the Fed raising interest rates will have zero to bring down inflation.

*** If a person gets a windfall there are several things they can do with it, save it, invest it, spend down debt, or go on a shopping 🛍 spree.

Over a year ago I recall that the consumer was spending down debt and saving, today savings have dwindled and debt is rising fast. That should tell you something.

Steve’s Barking; Let’s make inflation worse in America 🇺🇸

 I keep hearing from the chicken 🐓  little economist inflation is out of control and the must raise interest rates to bring it under control. Are they for real 😮. The rationale of these chicken 🐔 littles is that if you starve the money supply, people will have less money 💰 and the price of goods and services will come down. If you believe that premise I have a bridge I want to sell you. ( Boy 👦 I am going to make a Fortune because there are so many fools out there and many of them are economists who should know better). 

Now let’s assume that the Federal Reserve doesn’t do a thing, the price of goods and services will be out of reach for many, there by cooling the economy down, which in turn should stabilize prices, creating the same goal as the Federal Reserve raising interest rates and selling its assets.

Unfortunately this inflation is about lack of goods, especially gasoline and natural gas. This inflation is also about the inability to deliver goods to retailers in appropriate time. The inflation that we are suffering is also about Drought and food. It’s also about war. These are nothing that the Federal Reserve can do about. The Fed doesn’t drill for gas nor oil. The Fed can’t deliver goods that are waiting to be delivered and the last I heard the Fed doesn’t grow food, nor does it have the ability to end wars.  The best that Fed can do is try not to make matters worse. The Fed should stop listening to those nerves 😳 nellies and do nothing.

Steve’s Barking; The rise of interest rates is inflation 🤷‍♂️?

 Oh my goodness the conventional wisdom says that in order to fight inflation the central banks must raise interest rates to cool the economy down. I, part of the unwashed says that raising the interest rates has just the opposite effect. Raising the federal rate causes companies to borrow at a higher rate, forcing said companies to raise their prices, causing inflation to rise.. Oh my if the price of goods rises, guess what, you have inflation. Oh there’s always the possibility though slim as I think it is that people will slow down there unnecessarily spending, which may even force many of those businesses  to go out of business, or at the very least lay off many of their workers.. 

The fewer the businesses  and or the fewer the workers to produce goods the higher the inflation because there will always be a demand for certain goods such as groceries, clothing and housing. Let’s assume that the consumers percentage of wages goes toward housing, clothing and food goes up, two things are going to change, savings will go down and or unnecessary purchases such as travel and cable purchases will decrease. 

*There is going to be food inflation because of the Russian Ukraine war, Raising interest rates will make things worse.

Steve’s Barking; Ya think 🤔 inflations high now?

 You think 🤔 inflation is high now, well after the two World 🌎 Wars yowsher ( made up word).

 8.7% n 48.14.36% in 47.

 15.62 in 1920.

 We had a Great Recession at the end of 1920

 Now if my history memory is right we had a recession. Though it didn’t last very long.

 The whole point of this exercise is to point out that inflation generally comes after things like war and pandemics. One ( the government) has to be very careful what one does or a worse economic happening will happen.

Steve’s Barking;;Is it 1937-1938 all over again?

 The FED said today there going to reduce their balance sheet!

 The  FED today said there will be 4 rate hikes this year.

 What does that mean to us credit card holders? Are our interest rates are going to go up?

 What is going to happen to businesses that have been borrowing at astonishing low rates,?(It’s almost free money).

 Is the change in the FED’s policy going to hurt companies like Tesla, which I assume will have to raise the price of it’s cars, and Amazon prices to meet the new interest rates.

 How many companies are going to go out of business?

 Are we going to end the Covid recession recovery by going into a deep depression?

 Now if history serves me right, didn’t the Federal government start easing on the New Deal programs because the number showed that the country was coming out of the Depression, of course the easing of the  New Deal made things worse then they were prior to when Roosevelt took over as president.

*** Did Elon Musk know what the FED’s were going to do a head of time, so he sold 10% of his stock? 

 

Steve’s Barking; The more money 💰 ya print the lower inflation 🤔

 The more money ya print the lower inflation. Bolder dash, that impossible. Nooo it’s not impossible, if by chance the United States were to print money and give as grants to oil companies to open up the capped oil wells, guess what the price of oil should go down, never mind the price of fertilizer. If the government was to print money for training of truck drivers, the price of shipping should go down( supply and demand). Print money and give grants to farmers so they can buy, seed and feed the and price of food should be stabilized and possible even go down.

* Giving money away Willy Nilly can be in inflationary and probably is, but in my humble opinion giving money for the right reason can stop 🛑 an inflationary trend in its tracks, just as it one burns brush to stop fires 🔥.

Steve’s Barking; The buying of money 💰

 For the past decade or a little longer the cost of 💰 has been dirt cheap. Companies such as Amazon and Tesla were able to to borrow either through banks 🏦 or the selling of businesses bonds. The cost has been pennies. Now the know it all are demanding that the federal reserve raise rates. Whoa is me if one 🤔 thinks that inflation is high now what do you think 🤔 will happen when these companies have to raise their prices to keep up with the cost 💲 of money 💰. Will some major companies go under? There by having fewer items. Will the cost 💲 to consumers who buy on credit make stuff unaffordable to them. Will buying a house 🏡 be out of range for many because the mortgage 💸 is too high. Maybe 🤔 eventually the cost 💲 of housing will come down but the real cost will be too high for many to buy. Demand is always there. I haven’t seen any greater increase in demand, what I am seeing 👀 lack of goods. Now if one ☝️ thinks that having the cost of money 💰 rise will bring inflation under control I have to question you intelligence. 

Those who want the federal reserve to raise interest rates may not realize the consequences. America 🇺🇸 maybe 🤔 in-for a worse economic crisis that would put the Great Depression to shame. 

Steve’s Barking; Can anybody understand this inflated economy 🤷

 We’re in an inflationary period in America and in Europe. Of cause the prestigious(?) know it all’s from the prestigious university are saying the Federal Reserve tighten monetary policy even though this inflationary period is supply side inflation. This (meaning me) know it all says that if you really want runaway inflation tighten the money supply. Too many (perhaps up to one quarter) of business are able to stay in business due to the fact of cheap money. Now as I do recall from economics 101 too few businesses mean too few products to be sold, inflation would then go up. 

Now I do recall stagflation, and if I am right about tightening the money supply the stagflation of old would look like a mole hill compared to the mountain of problems that would happen including a deep recession with a staggering inflation. Can anybody say Argentina, perhaps Brazil. 

Steve’s Barking; Why are the RINOs anti capitalist?.

 Ok wtf is a RINO? Republicans in name only. Or the new Republican Party if that rocks your boat.

 Now why do I call the new Republican Party anti capitalist ( I could just say their anti business. 

 Well let’s just say two of the most prominent Governors Ron Santis and Greg Abbot are telling the businesses in their state that they can’t demand that their employees and customers to wear. Now if that’s the businesses policy, that’s the businesses policy. I know that if I ran a business in Texas or in Florida I would want my customers and workers to wear mask to avoid liability in case of COVID 19  outbreak being traced my place of business and I didn’t do enough to prevent it. How can a so called friendly business state have a governor who tells the tourists shipping industry that they can’t demand that it’s Cruise ships have it’s passengers and crew be vaccinated against COVID 19 when if an outbreak of the disease should crush the industry.  When Democrats tell businesses what they can and can’t do they call them socialist. Maybe the new Republican Party likes the communist idea of telling company’s what to do  also.

* The New Republican Party is not my uncle’s Republican Party. The old Republican Party was sneakily taken over by the Anarchist Tea Party.. 

Steve’s Barking; American economy save by COVID 19? ( wtf)

 American (USA) in January to March of 2020 (as I recall) had an acute labor shortage. To go along with this labor shortage was the prospect that 1/4 to 1/3 of all businesses in America were under water. In other words that would have had a hard time paying their bills. This despite extremely low interest rates.  Now along comes this deadly disease COVID 19 and the Federal Reserves has an excuse to buy up paper there for letting congress help bale out many of the firms that surely would no longer been in existence come the beginning of this year. Of cause this bale out isn’t called a bale out but rather a stimulus. Without this a-hum stimulus putting money in consumers pockets ( It’s great to have money in your pocket we’re you don’t have expenses traveling to and from work, or buying lunch out). 

 It seems that a lot expenses stood still, government helping even with mortgages and rent paying. Now that the pandemic seems to to be slowing down and the consumer is poised to spend like a drunken sailor in the eyes of this crazy writer it appears that the pandemic may have helped the economy.(?)

* It appears that there still maybe a labor shortage. But at least the businesses didn’t go bankrupt.

Steve’s Barking; Inflation on the way

 It appears that inflation that in the good old US of A inflation is just around the corner.

 There appears to be a shortage chickens, pigs and animals other farm products. Now I know not why.

 Perhaps the Chinese are buying up our farm products, perhaps it’s because of COVID. 

 Now the news reports are stating that farmers are and will be doing well and making money again.

The price of everyday products and timber is expected to rise, in my view most likely because of the pandemic (lack of goods were workers have are scared to go to work leading to product shortages plus the extra cost of keeping their workers safe and pandemic supply chain disruption.

Now there are reports that a shortage of drivers will lead to a shortage of gas deliveries. Now two things will happen if that’s true , gas prices will  rise (supply and demand) to high level as there being a shortage. Now the second problem oil prices will fall or there will be a shut down of oil wells, for after all if the if deliveries are cut you will have to store the oil. ( There will possibly be inflated gas inflated gas prices and deflated oil prices) Now the Jambonies ( idiots) who have prestigious Degrees in economics From prestigious universities who blame it on the flooding of money from the federal reserve or the budget deficit.

 God help us stay the course and the economy will straighten itself out.

Steve’s Barking; The falling of the US Dollar

 (Winkish (not wonk) ). The US dollar is falling down like London Bridges. The reason the dollar is   falling and so is the interest rate on US bonds is because of a a Russian and Chinese plot. Here taking their money and investing it other currencies not the dollar, and taking their dollar investments out👍🏾 hoping that the cost $ of raw materials goes through the roof🏚. 

Steve’s Barking; The coming(non) hyper inflation

 Oh I’ve heard it again, the printing of money is going to cause the worst inflation this country has ever seen. This is explained by some serious sounding person who (along with hundreds of thousands) predicted the housing bubble, recession of 2008. Of cause this person who is predicting this hyper inflation either works or is the boss of this really prestigious firm and sometimes he in the economics department of a real prestigious university.

 Ok, let me repeat what I’ve written about so many times before, the money that the Federal Reserve is printing(?) is actually replacing money that the country has burned. Now if you happen to stumble on this blog and you don’t understand what I’m saying tough.

  Now my understanding that most inflation is more of a supply and demand phenomenon and that includes the inflation of the Weimar Republic (Sorry the hyper inflation had little to do with the supper printing of money but the strict austerity forced on it by the victorious allies in World War I).

  What no one seems to talk about is the pockets of high inflation in places like NYC and San Francisco, plus places that struck it rich in the oil boom areas of the country. No one says gee their are an awful lot of stock that are inflated.( In case you don’t understand I’m trying to explain that their are pockets of inflation that no one seems to put it in their mindset). (There are also places that are in deep recession in the farm belt).

 Maybe on another day I’ll try to explain in logical terms on the Nixon, Reagan inflation stagflation.

 

 

 

Steve’s Barking; Too little money is inflationary

 I’m going against orthodox thinking. Too little money is inflationary. In this the age of a COVID-19 recession when businesses large and small face downsizing and going out of business, when those who have money will not be able to purchase what they want and need. That is of cause those businesses have enough money to stay in business and not go through bankruptcy and even say by, by. They will need money to survive. They will need money for production. So logic tells me that to avoid inflation just after the pandemic there has to be enough money to keep businesses going. Too little goods can cause inflation then in this case too much money!

Steve’s Barking; New Town economic law

 We seem to forget when we use the magic pen the New Town ( not Newton’s law) that every positive action has a negative action that is either less then, equal too, or worse then what was there before. This go for laws and or economic actions. One has to be very mindful of political actions.

Steve’s Barking; A 90 billion purchase of agricultural products by the China 🤬😕

A 90 billion purchase of agricultural products by the Chinese in one year would be a disaster for the American consumers.
The Chinese in bought a little over 9 billion dollars in agricultural products in 2017 the year before the trade war!
So that being said if China was to purchase 10 times that amount, the American farmer would have an almost impossible task producing that much farm goods for them. The United States families would then have to complete with subsidized Chinese families driving up the price of farm products several times over.
The poor will starve. Even those who call themselves middle class will have a tough time buying food.
Think of all those fast food joints that will go out of business! I know there are some who think that’s a good thing.
 If the U.S. isn’t careful it will turn into the capitalist version of Venezuela.
 If one thinks that major firms wouldn’t be effected, think again.When the consumer has the choice of eating or buying electronic products what do you think they will buy.
😫😤😩🥺😡😾
It should read 40 to 50 Billion dollars