Aug 27, 2023·edited Aug 27, 2023Liked by James Lavish, CFA
Thanks for the article....and helping me realize TODAY is Sunday...not yesterday 🤓.
The funny thing is... on https://fiscaldata.treasury.gov/americas-finance-guide they have a quote from Thomas Jefferson, "We might hope to see the finances of the Union as clear and intelligible as a merchant’s books, so that every member of Congress, and every person of any mind in the Union should be able to comprehend them, to investigate abuses, and consequently to control them."
1) Finances are not clear and intelligible, including that of CPI
2) 99% of the Union do not comprehend them, never mind investigate abuses (as I'll show below) to help control them.
Also embedded on that site, they show the Revenue, Spending, Deficit, and Debt. For Spending, they state "The U.S. government has spent $5.30 trillion in fiscal year 2023 to ensure the well-being of the people of the United States." - ("well-being"....what a flipping joke)
And they justify the Debt by stating, "The national debt enables the federal government to pay for important programs and services for the American public." - soooo...let's go into debt to pay for important programs and services. If I ran my household budget this way, I'd be in jail.
They also admit the recurrence of a deficit: "As the federal government experiences reoccurring deficits, which is common, the national debt grows." - 🤯
Lastly, they point to saying 'it's ok...the sky isn't falling' by showing the Debt-to-GDP ratio and how we've been able to manage it over time. With current average interest rates at 2.07%, the monetary policy stance of higher for longer, is just going to blow things out of proportion (and they've published this, as you've talked about). One more black swan and that published 124% Debt to GDP will go to 150%...then 200%...then 300% overnight.
Thanks for discussing inflation. I think it would be interesting for you do flesh out how the FED and Treasury have diddled with the basket of consumer items over the years. It is is another way they hide the stealing going.
Thanks for the article....and helping me realize TODAY is Sunday...not yesterday 🤓.
The funny thing is... on https://fiscaldata.treasury.gov/americas-finance-guide they have a quote from Thomas Jefferson, "We might hope to see the finances of the Union as clear and intelligible as a merchant’s books, so that every member of Congress, and every person of any mind in the Union should be able to comprehend them, to investigate abuses, and consequently to control them."
1) Finances are not clear and intelligible, including that of CPI
2) 99% of the Union do not comprehend them, never mind investigate abuses (as I'll show below) to help control them.
Also embedded on that site, they show the Revenue, Spending, Deficit, and Debt. For Spending, they state "The U.S. government has spent $5.30 trillion in fiscal year 2023 to ensure the well-being of the people of the United States." - ("well-being"....what a flipping joke)
And they justify the Debt by stating, "The national debt enables the federal government to pay for important programs and services for the American public." - soooo...let's go into debt to pay for important programs and services. If I ran my household budget this way, I'd be in jail.
They also admit the recurrence of a deficit: "As the federal government experiences reoccurring deficits, which is common, the national debt grows." - 🤯
Lastly, they point to saying 'it's ok...the sky isn't falling' by showing the Debt-to-GDP ratio and how we've been able to manage it over time. With current average interest rates at 2.07%, the monetary policy stance of higher for longer, is just going to blow things out of proportion (and they've published this, as you've talked about). One more black swan and that published 124% Debt to GDP will go to 150%...then 200%...then 300% overnight.
Thanks for discussing inflation. I think it would be interesting for you do flesh out how the FED and Treasury have diddled with the basket of consumer items over the years. It is is another way they hide the stealing going.
Thanks for smacking Krugman around, James, he really does deserve it.