Commentary

Consumer Prices Rise Most In 13 Years, Up 5% In May

We begin with last week’s surprising report on inflation in May, which saw consumer prices rise the most in 13 years.

Commentary

Biden Unveils Record Budget & Massive Tax Increases

Late last week President Joe Biden unveiled his first federal budget proposal as president for fiscal year 2022, which begins on October 1.

Commentary

Inflation Outlook, Consumer Spending Soars, Fed’s Surprise

There was the usual mish-mash of financial news last week, some good and some bad.

Commentary

US Inflation Blows Past Expectations In April

The US inflation rate soared above all pre-report estimates in April, the Labor Department reported last Wednesday, to its highest level in 12 years.

Commentary

US Birth & Fertility Rates Hit New Record Lows: Why?

The US Centers For Disease Control and Prevention reported last week that the US birth rate plunged for its sixth consecutive year in 2020. The US fertility rate also hit a new record low. Demographers are puzzled at this potentially troubling trend...

Commentary

When Will Powell’s Fed Have To Blink On Policy?

It was ever so tempting to devote today’s letter to a discussion of President Biden’s latest massive government spending, which he proposed Wednesday night in his “First Hundred Days” speech before Congress.

Commentary

Is Inflation Finally Back? Maybe, Maybe Not

Last week the Labor Department released its Consumer Price Index for March, and it was the highest monthly reading in more than eight years.

Commentary

Biden Infrastructure Plan Will Hurt, Not Help, Economy

President Biden’s massive $2.25 trillion infrastructure bill is on the tracks, rolling toward what many in Washington believe will be speedy passage in the House and Senate.

Commentary

More Reasons For Economic Optimism Just Ahead

A compelling argument can be made that the 21st century US economy has been a two-decade series of disappointments.

Commentary

Government Could’ve Issued $20,000 Checks Instead Of Stimulus

The latest surveys show most Americans who are eligible to receive the new $1,400 stimulus checks included in President Biden’s latest $1.9 stimulus plan are in favor of the upcoming government payments.

Commentary

US Economy Set To Soar - $2T Stimulus Is Bad Idea

Since the Commerce Department reported in late February that 4Q Gross Domestic Product (GDP) rose a stronger than expected 4.1%, many mainstream forecasters have been raising their US growth projections for 2021.

Commentary

Inflation May Finally Jump In 2021

Following the Great Recession and financial crisis in 2008-09, the Federal Reserve responded with unprecedented money creation, which was known as “Quantitative Easing.” Since then, the Fed has created trillions of dollars in new money, which mainstream economists were certain would lead to much higher inflation.

Commentary

"SPACs" - Probably Best To Just Say NO

One of the most popular investment vehicles in recent years is the Special Purpose Acquisition Companies or “SPACs” as they’re commonly called. While SPACs have been around for years, they’ve increasingly become the investment model of choice for Wall Street firms and fund managers who promote them.

Commentary

CBO: Economy Back To Pre-COVID Level By Mid-2021

The CBO said its latest forecasts are stronger because the recession in the first half of last year was not as severe as previously reported, and the recovery which began in the second half of 2020 has been stronger than previously estimated.

Commentary

Overview: 2020 Economy Worst in 74 Years

We’ll touch on several bases today. We start with the latest news from the Commerce Department which just released its initial estimate of 4Q economic growth (or lack thereof). 2020 goes down as the worst economic year since the end of World War II.