After all the destructive policies we have seen coming out of the Eccles Building, it may be time to ask Fed Chairman Jerome Powell, “Do you even know what the economy is?” All the easing and stimulus has taken us to a place we could call Bubbleville. It has bolstered asset prices and speculation but done little to help Main Street or generate a strong economy. This destructive force was unleashed long before Covid-19 came into the picture and hanging our economic misfortunes on the pandemic may sound reasonable but is far from accurate.
History shows that misguided financial policies often end in a crisis, in this case, it is likely to play out in massive inflation. Milton Friedman knew a bit about this, he said; The government benefits the first from new money creation, massively increases its imbalances, and blames inflation on the last recipients of the new money created, savers and the private sector, so it “solves” the inflation created by the government by taxing citizens again. Inflation is taxation without legislation.
A comical Progressive Insurance commercial has a smooth-faced fella going on about his beard and apologizing for how he looks. Finally, a coworker asks him, “Jamie, do you even know what a beard is?” Over the months we have watched Fed Chairman Jerome Powell time and time again cut rates and increase the Fed’s balance sheet. This has hurt savers, forced investors into risky investments in search of yield, damaged the dollar, encouraged politicians to spend like drunken sailors, and increased inequality.
The Fed’s actions have not demonstrated a thorough understanding of the economy. About to add to the problems on Main Street, anyone watching the news should be well aware that President Biden has come out during the last few days talking about a big tax increase. With the Internal Revenue Service already swinging in the wind and in utter disarray due to the massive number of lane changes it has been forced to make over the last year can the IRS even manage another huge rewrite of the rules without a year or so to catch up? What we are witnessing is insanity at the highest level.
The mind-boggling stupidity of those at the Fed suggesting negative interest rates might solve our economic woes should stop us dead in our tracks. The only thing dumber was the idea put forth in an article questioning whether the government should mandate people to save money. Two important issues come head to head here resulting in a massive explosion, first, the Fed’s artificially low-interest rates are obliterating savings at a time of growing inflation, and second is that when people retire without savings, it will fall upon the government to support them until they die. This does not bode well for the national deficit.
This sort of thing has played out in many countries such as Argentina. And how did it work out for them? The governments which have implemented such policies have not only destroyed their currency but at the same time created more inflation and killed their economy. The end result being one of stagflation. The only reason inflation has not already knocked us to the floor is that much of the money has flowed into intangible assets such as stocks and bonds rather than into the tangible items we use each day. When this changes we will experience an economic crisis that could eclipse anything we’ve seen before.
To be perfectly clear, the problem we face is that poorly spending even trillions of dollars does not necessarily create a strong economy. The idea we can simply throw money at our problems is flawed. As small businesses close their doors forever, many of these jobs won’t be coming back. This translates into far higher deficits going forward as many more Americans exit the workforce. Simply throwing money at a problem does not guarantee it will halt the formation of a self-feeding loop.
While many investors talk about the link between low-interest rates driving the economy and markets ever higher this correlation is very weak. Japan is proof that low-interest rates do not guarantee a booming economy. The current low-rates combined with our massive government deficit is creating a false economy. It is also baking in a higher overall cost structure. Want to know where the real cost of things is going, just look at the replacement cost from recent storms and natural disasters.
The Federal Reserve and the government does not have a better or more accurate understanding of the needs and demand for goods and services or the productive capacity of the economy than Main Street. Instead, the Financial Government Complex has a huge incentive to overspend and transfer its inefficiencies to everyone else. People like Powell and Janet Yellen are insulated from the real world and the suffering of those who watch helplessly as their lives are upended and destroyed. We have entered uncharted waters and sadly, we have damn fools at the helm.
Massive liquidity injections may temporarily mask a multitude of sins but is not a long term solution. It defies logic to think if the economy is really strong that the Fed, “must do more” and all the jawboning Powell does won’t change the ugly reality we face. Even if Powell stands on the rooftop and shouts, “All is well!” we have little reason to trust him. He has turned investment rules upside down and like those before him, his action
Originally published at Bruce Wilds.
‘The Purge’ by Big Tech targets conservatives, including us
Just when we thought the Covid-19 lockdowns were ending and our ability to stay afloat was improving, censorship reared its ugly head.
For the last few months, NOQ Report has appealed to our readers for assistance in staying afloat through Covid-19 lockdowns. The downturn in the economy has limited our ability to generate proper ad revenue just as our traffic was skyrocketing. We had our first sustained stretch of three months with over a million visitors in November, December, and January, but February saw a dip.
It wasn’t just the shortened month. We expected that. We also expected the continuation of dropping traffic from “woke” Big Tech companies like Google, Facebook, and Twitter, but it has actually been much worse than anticipated. Our Twitter account was banned. One of our YouTube accounts was banned and another has been suspended. Facebook “fact-checks” everything we post. Spotify canceled us. Why? Because we believe in the truth prevailing, and that means we will continue to discuss “taboo” topics.
The 2020 presidential election was stolen. You can’t say that on Big Tech platforms without risking cancelation, but we’d rather get cancelled for telling the truth rather than staying around to repeat mainstream media’s lies. They have been covering it up since before the election and they’ve convinced the vast majority of conservative news outlets that they will be harmed if they continue to discuss voter fraud. We refuse to back down. The truth is the truth.
The lies associated with Covid-19 are only slightly more prevalent than the suppression of valid scientific information that runs counter to the prescribed narrative. We should be allowed to ask questions about the vaccines, for example, as there is ample evidence for concern. One does not have to be an “anti-vaxxer” in order to want answers about vaccines that are still considered experimental and that have a track record in a short period of time of having side-effects. These questions are not allowed on Big Tech which is just another reason we are getting cancelled.
There are more topics that they refuse to allow. In turn, we refuse to stop discussing them. This is why we desperately need your help. The best way NOQ Report readers can help is to donate. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal as well. We are on track to be short by about $5300 per month in order to maintain operations.
The second way to help is to become a partner. We’ve strongly considered seeking angel investors in the past but because we were paying the bills, it didn’t seem necessary. Now, we’re struggling to pay the bills. We had 5,657,724 sessions on our website from November, 2020, through February, 2021. Our intention is to elevate that to higher levels this year by focusing on a strategy that relies on free speech rather than being beholden to progressive Big Tech companies.
During that four-month stretch, Twitter and Facebook accounted for about 20% of our traffic. We are actively working on operating as if that traffic is zero, replacing it with platforms that operate more freely such as Gab, Parler, and others. While we were never as dependent on Big Tech as most conservative sites, we’d like to be completely free from them. That doesn’t mean we will block them, but we refuse to be beholden to companies that absolutely despise us simply because of our political ideology.
We’re heading in the right direction and we believe we’re ready talk to patriotic investors who want to not only “get in on the action” but more importantly who want to help America hear the truth. Interested investors should contact me directly with the contact button above.
As the world spirals towards radical progressivism, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report going.