CBO: Student Loan Forgiveness will Cost $400B Over Next 30 Years


Armstrong Economics Blog/Politics Re-Posted Sep 30, 2022 by Martin Armstrong

The Congressional Budget Office (CBO) is a nonpartisan agency that simply calculates the numbers. The Biden Administration is constantly at odds with the CBO as they repeatedly point out why handouts are never free. Biden’s pre-midterm bribe to cancel student debt will come with a huge price tag — $400 billion.

Borrowers earning under $125,000 annually will receive a $10,000 debt cancelation, while Pell Grant recipients will see a $20,000 reduction. Everyone else will receive a bill in the form of taxes, and even those with loans forgiven will suffer. The CBO calculated the cost of the plan, which will cost $20 billion from September to December 2022 alone. The Biden Administration initially said that the plan would cost $240 billion over the next ten years. Yet, the CBO estimates that the cost of loan cancellation will continue for the next three decades for a total of $400 billion.

Yes, this will cause America’s deficit to rise. Instead of working to lower tuition costs or predatory student lending practices, Biden simply passed along the bill to the taxpayers and pretended the money owed simply vanished. Colleges can simply raise their fees with no repercussions. Glass Stegall has not been reinstated, and those facing bankruptcy cannot erase their student debt.

Glass Stegall was repealed under the Clintons, and even the Clintons’ top financial advisor, Larry Summers, is against Biden’s student loan forgiveness program. “It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will also tend to be inflationary by raising tuitions,” Summers wrote on his Twitter in August. This is simply a gimmick to buy voters who do not understand the repercussions.

Confused Biden Conflates Wage Growth with Inflation, Claims Inflation is Having Less Money in Your Paycheck


Posted originally on the conservative tree house on September 26, 2022 | sundance 

Many people believe the people who are in charge of the economic policies destroying the middle-class have no idea how the Main Street economy actually works.  I disagree, I believe they know exactly what they are doing and why they are doing it.

From one perspective, inflation is a statistic that comes from a bureaucratic system quantifying prices.  They have no concept of how policy-driven price increases hurt consumers or working-class families.  Everything in their sphere is academic and esoteric.

However, that said, those who have designed policy know there are benefits to inflation, like lowering economic activity that supports their lowered energy production policies. Inflation also helps them pay their way out of the spending they create that drives the inflation. Make money worth less and debt is lessened, or so the theory is told.

Joe Biden made remarks today that “inflation” as he looks at it, is defined as the amount of money in a paycheck.  WATCH:

.

Economic Policy Experts

The Flight to Mexico


Armstrong Economics Blog/Mexico Re-Posted Sep 24, 2022 by Martin Armstrong

QUESTION: Good afternoon Mr. Armstrong.
I have been a basic member for 6 years.
Since then I have been following your USD prediction and it is on spot despite everyone saying the contrary.
However, after seeing the EURO, Pound, Yen, and other currencies waterfall, why has the Mexican peso kept its value? I can’t find the logic.
Could you please explain?
Thanks for ALL you do.
BP

ANSWER: This is the Array from 2020. That was the ideal of the high for the dollar and that coincided with the end of the Trump Administration. The Biden Administration has been at war with fossil fuels from the beginning, despite trying to blame Putin.

This has benefited Mexico from a value perspective, but while claiming to be on board with this Great Reset, they are not as gun-ho as Canada and the USA. Even polls at the start of 2022 in the USA were telling. Rasmussen Reports national telephone and online survey concluded that 45% of American voters believed the highest priority for businesses was to provide individual consumers with high-quality products and services at the lowest prices. Only 9% of voters classified climate change as the top priority for business, and only 1% said that business resources should pursue social justice as a top priority. (To see survey question wording, click here.)

Our capital flow model has been pointing to tremendous inflows to Mexico since they have had the best anti-COVID mandates so there are a lot of Europeans leaving for South and Latin America and Mexico has been a primary target.

This trend appears to be continuing into 2024. As war rises in Europe and the leaders seem intent upon sacrificing their people on the altar of climate change, COVID, and Ukraine, the flight of people and capital will continue. For those who refused to get vaccines, Mexico has been the safe haven for the world.

  • There are no COVID-19 test requirements in Mexico.
  • COVID vaccination passports or certificates are not mandatory to enter Mexico.
  • There are no quarantine requirements in Mexico

Mulvaney, Goolsbee and Santelli Finally Discuss Supply Side Energy Driven Inflation and the Disconnect of The Political Federal Reserve


Posted Originally on the conservative tree house on September 23, 2022 | Sundance

Mulvaney, Goolsbee and Santelli Finally Discuss Supply Side Energy Driven Inflation and the Disconnect of The Political Federal Reserve

September 23, 2022 | Sundance | 51 Comments

Finally, a finance and economic discussion that touches on the critical component to inflation that no one dare say, or else they suffer political backlash.  Although Mick Mulvaney, Austin Goolsbee and to a lesser extent, Rick Santelli, had to maintain the acceptable ‘pretending’ approach, parsing words carefully, at least this is one of the first times where the supply side (energy driven) issue of global inflation was discussed.

As the group collectively admitted there is no other option other than a “hard landing” that collapses the economy from the current Fed approach; additionally, Rick Santelli, blasts the relationship between the political central banks and the global leaders who have pressured this dynamic.  WATCH:

.

Still pretending, but lessened a little.  Hey, progress.