The dollar will have a hard time

Treasury Quadruples Borrowing Estimates to Pay for Stimulus

The U.S. Treasury more than quadrupled its borrowing estimate for the quarter through June, and expects to need some $1.3 trillion over the second half of the fiscal year to help pay for a raft of fresh pandemic-relief spending.


The Treasury’s projections, released in Washington Monday, incorporated the impact of President Joe Biden’s $1.9 trillion pandemic-relief bill, enacted in March. In a February outlook, the Treasury left out any guess on such spending.

Dollar value is down below pre pandemic levels.  The FX insurers might want extra, but more likely oil price will jump. Dunno which comes first, the chicken or the egg.  Lookingf here t 2 AM oik jumpa to 65 making frackers active.

Pandemic cost

Repubs kick out the independent voters

Allies of GOP leader vow to oust Liz Cheney

They just lost the mid term elections with this stunt.

Otherwise known as a negative productivity shock

Stagflation Slams US - Production Slumps As Supply Chain Disruptions Spark Record Surge In Prices

The Fed is not doing any level targeting at all, it is simply collecting taxes.

The problem is mostly fiscal, the government disruption of the economy causes supply chain contraction, ultimately We will have an economy in contraction as soon and Janet begins the regularly scheduled rate cycle.

Crony capitalists shaking the addiction

Exclusive — Cruz, Rubio ramp up criticisms of big business

These two nut are the very definition of Republican welfare bums.

Supply chains under stress

"The Costs Are Up, Up, Up. We're Seeing Substantial Inflation"

Buffet sees the price changes up and down the chain. The longer supply chains a cannot be sustained,. 

Entertaining is the correct term

CA DEMS GEAR UP FOR NEWSOM RECALL FIGHT

A diversion from the normal government crap.

My great great uncle

 The highest number of documented enslaved African-Americans held in bondage by the Rowan family totaled 39 in 1830. Research indicates that Judge John Rowan owned at least 54 slaves during his lifetime. The population of slaves consists of 9 family groups. Various members of the Rowan family either supported or opposed the institution of slavery.  The silhouettes below represent people in bondage at either Federal Hill or at the Rowan's Louisville townhouse.

So, I was the poor side of the family, from the brother of John Rowan.

Not good news

German economy shrinks in first quarter

One of the big four economies in recession.  Partly due to covid, they never really got it to slow down:

We still have the global covid problem and recovery is pushed back two quarters. Bad news. The news from India is horrifying. Supply chains will remained broken for longer than expected.

There is no escape hatch

 

The Fed balance sheet.  The Fed cannot taper, Congress has already spent the money and there is no way Congress can make the interest payments without the Fed taxes. The Fed is now a permanent tax collector.

Speaking of taxes:

Washington lawmakers approve capital gains tax for the first time in state history

This is Biden's tax base, he wanted it for the Swamp.  Washington, California and New York will be hesitant about giving this up to Biden. Those are large political groups and make capital gains tax hike difficult if not impossible for Biden.