Tuesday, July 30, 2019

With some practice the kids will probably put a gold coin through a rat's head clean across the yard

The Federal Reserve is poised to cut interest rates from a level that's already historically low for an economy that Trump declares as, "the best economy ever". The big question is the Fed appeasing the orange moron or do they see the big flashing red warning lights of an impending collapse?

We do have a couple of huge debt bombs strapped to the pillars that support the economy as we've come to know it. Consumer and student debt are at record levels as are the default rates on both that continue to climb. After the 120 consecutive months of steady growth that Trump takes credit for, we should not have such problems. 

If you noticed that the "120 consecutive months" in that Trump claim seemed wrong then you're not a calendar challenged conservative. He's a bright orange Banty rooster strutting around the yard taking credit for his crowing making the sun rise. Of course is was Obama that did this, just as Trump alternates his racist tweets with claims that he lowered the Black unemployment rate to a new record low while it was Obama that cut the number in half and it ticked down just one more point under Trump. Trump calls Black Congressmen racist and ends the tweet with #BlacksForTrump2020 or in reality #chickensForTheColonel. 

The very stable genius's claim of a 3% growth rate just evaporated with revised government numbers. The easy to compile numbers looked good but when you dig into what is really going on there's a lot of rot. 

Trump has been cutting regulations on banks allowing them to issue riskier loans while maintaining reserves too small to cover the defaults from even a modest down turn in the economy. 

Then there is the Dark Money credit market that accounts for half of business borrowing that isn't regulated at all. Good time to invest in a 'board up service' because retail stores will be going under at a record rate once the shit hits the fan. 

The ballooning Federal debt is rarely even mentioned anymore. Remember when Republicans screamed about Obama's deficits when he inherited trillion dollar short falls from Bush and then cut them in half? Conservatives don't seem to notice that Trump has 1.25 billion deficit and it will be higher every year into the future.

The Federal debt isn't an actual problem because the Treasury has no problem selling all the bonds it offers at very low rates that are now starting to fall. Rich people and their corporations have more money than they know what to do with thanks to low taxes and government debt is the only safe place to put it. After the Bush crash they were paying the government a premium for bonds so rather than it costing to borrow, the government made money on every bond it sold. The rich have never invested their tax cuts in anything that would trickle down to the rest of us and they never will. 

Today's pro-tip: shotgun shells will make an excellent barter item for the post Trump apocalypse world, light and small for their value and always in demand. You can buy them now surprisingly cheap in bulk. Or if you prefer gold, maybe you can hunt rats using a slingshot loaded with a Krugerrand.  - prairie2.com