Mar 7 2024

Scared of the National Debt? You Should Be.

Posted originally on Mar 7, 2024 By Martin Armstrong

A new billboard launched in New York City’s Times Square is sounding the alarm on America’s growing national debt crisis. “Scared of the national debt? You should be.” US national debt spiked past $34 trillion at the top of the year and continues to rise due to massive spending packages. Now that America is committed to funding two largescale wars and 7.2+ million new migrants, America will continue sinking deeper in a hole.

The Committee to Unleash Prosperity (CTUP) funded the billboard and said its aim to inform the voting public on the policies that will destroy this nation. CTUP says that this is a bipartisan problem that must be revealed to average person. Their website quotes Milton Friedman:

“Keep your eye on one thing and one thing only: how much government is spending, because that’s the true tax … If you’re not paying for it in the form of explicit taxes, you’re paying for it indirectly in the form of inflation or in the form of borrowing. The thing you should keep your eye on is what government spends, and the real problem is to hold down government spending as a fraction of our income, and if you do that, you can stop worrying about the debt.”

The average person does not realize that these “free” aid packages to Ukraine, Israel, Taiwan, the migrants, climate change, etc., come at the expense of the US taxpayers. YOU are paying for all of these measures. Government has and will raise taxes in order to fund these fiscal measures but they will NEVER collect enough revenue from the people to cover their spending. Then these measures lead to rising inflation where goods cost significantly more and our dollar is worth significantly less.

The Congressional Budget Office stated that national debt reached 97% of GDP by the end of 2022. I repeatedly point to Jerome Powell’s 60 Minute interview where he breaks with Washington to point out how utterly unsustainable government policy has become. “How do you asses the national debt?” the interviewer questioned the Fed chairman. “We mostly try very hard not to comment on fiscal policy and instruct Congress on how to do their job,” Powell answered, adding that Congress has oversight on the Fed and not the other way around.

@60minutes
60 Minutes witnessed migrants struggling to get through coils of sharp wire to illegally enter the U.S. #60minutes #eaglepasstx #borderpatrol #usborder #migrants
♬ original sound – 60 Minutes

“In the long run, the US is on an unsustainable fiscal path. The US federal government is on an unsustainable fiscal path and that just means that the debt is growing faster than the economy,” Powell finally warned, later adding, “effectively, we are borrowing from future generations.” He warned that we must begin to prioritize fiscal policy immediately to fix this unending crisis. Again, his comments were unprecedented as his agency is largely unable to criticize Washington. How is the Federal Reserve supposed to regulate price stability when their overlords are doing everything possible to steer the nation’s economy off the deep end?

So what can the public do and what’s the point of this billboard? It begins with your voice and ends with your vote. Stop supporting these endless wars, they are only hurting the nation from within and are NOT meant to attain victory or liberate anyone. We are not helping the people of Ukraine by prolonging their war. We are not saving the world by throwing money at climate change policies. We simply do not have the resources to fund millions of migrants who continue to show up at the border every minute. All of these policies are hurting the economy and, ultimately, the future of America and the American people.

Mar 7 2024

Schwab Did Not Invent Stakeholder Economics

Posted originally on Mar 6, 2024 By Martin Armstrong

Everyone knows I became friends with Milton Friedman. Back in 1970, Milton exposed how Stakeholder Economics was inefficient and stupid long before Schwab claimed he invented it. Milton stated that such a role was that of government, not corporations, whose #1 fiduciary obligation was to its shareholders. Under Schwab, I could say, “OK, I will go public; everyone sends in money. I will give you shares in return and then say — OMG, there are people starving in Africa!” So, I decided to give 50% of all the profits to them and not my investors. This is Stakeholder Economics.

The New York Times wrote on September 13th, 1970:

“WHEN I hear businessmen speak eloquently about the “social responsibilities of business in a free‐enterprise system,” I am reminded of the wonderful line about the Frenchman who discovered at, the age of 70 that he had been speaking prose all his life. The businessmen believe that they are defending free enterprise when they declaim that business is not concerned “merely” with profit but also with promoting desirable “social” ends; that business has a “social conscience” and takes seriously its responsibilities for providing employment, eliminating discrimination, avoiding pollution and whatever else may be the catchwords of the contemporary crop of reformers. In fact they are—or would be if they or any one else took them seriously— preaching pure and unadulterated socialism. Businessmen who talk this way are unwitting puppets of the intellectual forces that have been undermining the basis of a free society these past decades.”

Mar 7 2024

Elon Announces What He’s Not Going to Do

Posted originally on the CTH on March 6, 2024 | Sundance

“It’s a big club, and you ain’t in it.”

There’s a certain type of psychology to people who insist on telling you what they are not going to do. Ordinary, well, stable people, just don’t do things, and they are quiet while they don’t do things.

Then, there are other people….

[Source]

In related news…. It has been brought to my attention that stable Treehouse people do not announce what they are not doing. They just live their best life. Huh, go figure.

Mar 6 2024

Cap on Credit Card Late Fees Hurt Financially Illiterate Americans

Posted originally on Mar 6, 2024 By Martin Armstrong

The Biden Administration implemented a new rule that will cap credit card late fees at $8. The Consumer Financial Protection Bureau has praised the measure, estimating it will save Americans over $10 billion annually in late fees, or around $220 annually per person as 45 million Americans have experienced these fees within the last year, but this measure may be more harmful than helpful.

Credit card debt in America is at an all-time high of nearly $1.13 trillion and continues to rise as around 56 million Americans carry credit card debt. The typical late fee payment is around $32, but this is merely the fee for missing a payment and does not account for compounded interest. It seems like common sense, but one must realize that the average person is not financially literate. The concept of basic finance is not a mandatory requirement for the public education system, leading many people to live off debt, well beyond their means, with no chance of recuperating. America has the leading median level of credit card debt among all developed nations. There is a widespread belief that one can afford certain goods if they are approved for a line of credit, which only benefits the banks.

Now, the banks are certainly profiting on late fees, which account for about 15% of credit card profits based on the CFPB’s 2021 Consumer Credit Card Market Report. Do these fees deter reckless spending? A 2022 ABA-led survey found that 46% of respondents said they made it a priority to pay off their credit cards on time to avoid late fees. That particular study found that a fee of $10 was enough to redirect one’s attention to their financial obligations. Another study by the Harris Poll and NerdWallet found that Americans were more likely to make a payment of their cards if a $30 fee was implemented.

Again, one must understand that the average person cannot compute the cost of compounding interest. Borrowing money is not a legal right and should be done with the utmost caution. Simply forgetting or dismissing financial obligations has consequences.

The banks will find a way to profit off the people in other ways. It is the nature of banking. Rob Nichols, the president and CEO of the American Bankers Association, explained that other measures could be implemented that will hurt everyone. “The Bureau’s misguided decision to cap credit card late fees at a level far below banks’ actual costs will force card issuers to reduce credit lines, tighten standards for new accounts and raise APRs for all consumers – even those who pay on time,” Nichols said. This is yet another Biden Admin policy favoring the financially irresponsible at the expense of others.

So, what is the CFPB recommending as an alternative? CBDC. The agency is first suggesting digitizing banking so that consumers have instant access to their credit scores and spending habits. Again, these numbers are disregarded by a portion of the population. The agency is patronizing all Americans by stating we are not intelligent enough to know when to pay off our monthly debts without digital notifications and reminders.

Financial literacy is desperately needed in America. So, while the Biden Administration is breaking its arm patting itself on the back for this surface-level win for the everyday man, the ruling does nothing to combat the growing personal debt crisis.

Mar 5 2024

Why Panera is Excluded from California’s Minimum Wage Hike

Posted originally on Mar 5, 2024 By Martin Armstrong

California is raising the minimum wage of fast food employees from $16 to $20 under the FAST Act. I have explained that raises to California’s minimum wage was restricted due to successful lobbying efforts on behalf of fast food establishments. The new law does include commercial fast food restaurants, excluding Panera Bread. Why?

Fast food lobbyists spent $4 million in the first six months of this year to prevent the California Accountability Bill from passing. The bill would hold franchisees and their parent companies jointly liable for the treatment of workers. California Governor Gavin Newsom claimed that minimum wage jobs were not meant for students of people looking to gain employment experience. “That’s a romanticized version of a world that doesn’t exist,” Newsom said. “We have the opportunity to reward that contribution, reward that sacrifice and stabilize an industry.”

A fast-food bill was passed in September 2022 that set the minimum wage to $22 per hour for select chains with over 100 locations, later expanding to a $20 minimum pay for restaurants with 60 locations. Now California is specifically exempting fast food establishments that contain bakeries, such as Panera Bread. Why are restaurants that sell bread above the law?

The answer is that politicians are always up for sale to the highest bidder. Glenn Flynn is the largest fast food franchise owner in America with an empire of 2,600 restaurant locations that produce around $.45 billion in sales. Flynn, estimated to be worth around $1.1 billion, has strongly supported Gavin Newsom publicly since 2014, when Newsom was a lieutenant governor. Both men attended the same high school and have longstanding ties.

Bloomberg reported that Flynn donated $64,800 to Newsom’s personal re-election campaign and an additional $100,000 for conservative-led recall efforts. Flynn’s holdings in California only include two establishments – Applebee’s and Panera Bread. Applebee’s is exempt from the law despite its pre-frozen dishes since it is a sit-down restaurant chain. Panera Bread, on the other hand, is exempt due to this specific loophole that only excludes establishments that bake bread. This is what happens when lobbying is permitted and politicians are for sale.

Mar 5 2024

Crying over the Supreme Court Decision – Get Over It

Posted originally on Mar 4, 2024 By Martin Armstrong

Some critics are obviously anti-Trump who have come out crying that’s really unusual for the Court to give such little notice that they would release a decision. They are indeed crying that this was because of Super Tuesday and therefore they are trying to support Trump.

Let me explain something here to these absolutely biased idiots. Let’s say the Supreme Court waited until May or June to release its decision, and you have Colorado, Maine, and Illinois who blocked Trump. Then what would happen? The entire 2024 election might be seriously impacted and then challenged in court in another array of suits. They had to rule, and it was UNANIMOUS before Super Tuesday to avoid a constitutional crisis. EVERYONE on the court agreed – Colorado had no such jurisdiction – PERIOD!

GET OVER IT!

THIS WAS NOT A 5-4 DECISION

IT WAS UNANIMOUS

Trump v Anderson My Amicus Brief-F

As I wrote in my Amicus Brief to the Supreme Court, the last time any state refused to allow a candidate on the ballot was 1860 when Abraham Lincoln did not appear on the ballots in the South. What followed? The Civil War.

The Founding Fathers never intended to allow a rogue state to interfere in either national commerce or national federal elections, as implied in the Commerce Clause, Article 1, Section 8, Clause
3 of the U.S. Constitution. Could Colorado remove a senator or congressman of another state claiming that they were part of the January 6th event they called an unarmed insurrection? There is no jurisdiction for a single state to remove a national candidate from the ballot – PERIOD! Assuming such power would mean they too could interfere in the commerce of other states. That would lead to complete chaos. Even Sotomayor, the favorite of the Democrats, wrote clearly:

“Allowing Colorado to do so would, we agree, create a chaotic state-by-state patchwork, at odds with our Nation’s federalism principles. That is enough to resolve this case.”

Anyone who cannot see that is so biased; they no longer have a functioning brain cell. They have been so brainwashed, they are no longer competent even to vote. We are either a nation with a national identity or a patchwork of states that no longer should pretend to be united.