by Dr. Paul Craig Roberts
PaulCraigRoberts.org
The entire the financial press has zero understanding of basic economics. The financial “journalists” just print press releases.
The US debt has never mattered, because the US dollar is the world reserve currency. That means US debt is the reserves of the world’s central banks. If US debt rises, so does the reserves of the world banking system. All central banks were delighted to accumulate more US Treasury debt as it meant the reserves of their banking system went up.
The Federal Reserve can always redeem US Treasury debt by creating money with which to buy it. The debt is always redeemable because it is denominated in dollars.
There has been a lot reported in recent days about the return of currency wars. This story arises in the context of a likely Trump election victory in the November presidential elections.
As a result, a significant percentage of households that are considered middle-class are one misfortune away from insolvency.
The experts have failed us. So-called adults in positions of authority in schools and at doctors’ offices have failed children comprehensively by placing their own personal and professional ideologies far above children’s actual needs.
Worsening relations with China, the United States just hit China with a new wave of extremely high tariffs. Around $18 billion worth of Chinese goods will be affected, but the White House deems the tariffs necessary to help American industry.
If residential mortgages get messy, banks are largely off the hook this time.
Porn star Stormy Daniels says she had sex with Donald Trump at a Lake Tahoe hotel in July 2006. To keep her from telling that story, former Trump fixer Michael Cohen says, “the boss” instructed him to pay Daniels $130,000 shortly before the 2016 presidential election.
I never imagined that we would ever see a time when it takes $177,798 for a family of four to live comfortably in the United States. Unfortunately, that day has arrived. Our leaders have been pursuing highly inflationary policies for many years, and now we have reached a point where inflation is wildly out of control. In fact, the latest wholesale inflation figure that was released on Tuesday came in much higher than expected. Sadly, this is just the beginning and we are in far more trouble than most people realize.
The U.S. government ran a rare surplus in April, but don’t get too excited. The Biden administration hasn’t slowed down the spending train, and more budget shortfalls loom on the horizon.
Former President Donald Trump will remain gagged during his criminal trial in Manhattan, a New York appeals court ruled Tuesday.
Is it just me, or do “Germany” and “socialism” not belong in the same sentence? Frankly, socialism doesn’t belong anywhere except an encyclopedia, to serve as an example of an “idiot plot” (along with communism).