Category Archives: economic news

Mr. POTUS, tell Putin …

Joe Biden doesn’t need little ol’ me to give him advice as he talks to Vlad Putin, but I will offer it anyway and will make sure I send it to the appropriate place where someone on his staff might see it.

Mr. President, you need to remind Putin — as if he needs reminding — that he presides over a country with a third-rate economy. It is not a First World economic system. It is Third World at best, relying on oil and natural gas to keep it fueled.

Tell your colleague, Mr. President, that economic sanctions of the type we are able to level on Russia will bring great pain to himself and to the people he governs. We can cut off the oil and natural gas shipments to western Europe, which you have threatened to do if he invades Ukraine. We can freeze Russian monetary assets in banks in this country and we can persuade our NATO allies to do the same.

Also, the president ought to remind Putin of the terrible military cost his armed forces will suffer if they take on Ukrainian forces. Ukraine is not defenseless against the Russians. The Russians can win a ground war if they launch a full-scale invasion, but it will come at considerable cost.

And if Putin is interested in gathering up what’s left of Ukraine and annexing it into the Russian federation, he will do inherit a population that hates his ever-lovin’ guts.

The cost of an invasion — no matter its scale — is too great for the Russians to bear. Putin knows this. He just needs a not-so-gentle reminder from the leader of the world’s remaining military superpower.

johnkanelis_92@hotmail.com

POTUSes can’t always control inflation

Presidents never deserve all the credit they take for economic growth, nor do they deserve all the blame for when economic conditions head south. Thus, Joe Biden doesn’t deserve to be pilloried for the inflation that is ravaging our economy; for that matter, neither did Donald Trump deserve it when he was in office.

President Biden’s poll numbers continue to sag partly — or perhaps largely — because of inflationary pressure being felt in millions of American homes. Sure, there are other factors contributing to Biden’s falling poll numbers.

How can a president control some issues, such as the “supply chain” matter that has affected the economy in light of the coronavirus pandemic? I have no answer to that one, but it doesn’t seem to matter to Americans who today are blaming Joe Biden for all the fiscal ailments they are feeling.

I want to be clear: I have been highly critical of Donald Trump’s initial response to the pandemic, but my criticism of the former president had nothing to do with the economic pressure that mounted prior to the 2020 presidential election. Therefore, while presidents can take some credit for economic success and must accept some blame for economic failure, some matters are beyond even their control.

President Biden promises that inflation will relent by the end of this year. I hope he is right … although I do wonder if he has the power to make such a pledge.

johnkanelis_92@hotmail.com

Morning in America dawns again

Ronald W. Reagan campaigned for re-election in 1984 as president on the theme that it was “morning in America.” By golly, it worked as President Reagan steamrolled to a smashing landslide victory, winning 49 states and rolling up an Electoral College margin of 525 to 13.

Well, guess what, ladies and gentlemen. I believe it’s “morning in America” is dawning yet again in the good ol’ U.S. of A.

Economic reports show that the Gross Domestic Product grew at a rate not seen since 1984. Unemployment is now down to 3.9%, which is about where it was prior to the onset of the coronavirus pandemic. More jobs have been added to non-farm payrolls at any time in the first year of a presidency, which is something that Joe Biden has been proclaiming for a good while.

What does this mean for the president? It means he has some grist on which to build a campaign in advance of this year’s midterm election, which will be a setup for the 2024 presidential campaign.

I am aware of the hurdles that remain. We need to rein in inflation; the Federal Reserve Board is poised to do that by increasing interest rates this year. There are some foreign-policy issues with which to deal, such as Russia and Ukraine, China’s bellicosity and threats against Taiwan, the ongoing Middle East tensions. Of course, we also have climate change … and the pandemic.

Economically, it is morning once again across the land.

The president needs to be careful to avoid hogging more credit than he deserves. I have noted for longer than I can remember that POTUSes don’t deserve all the blame nor do they deserve all the credit for swings in the economy.

The good and the bad, though, occur on their watch. Thus, they become the hero or the zero, depending on which way the economy is tracking.

johnkanelis_92@hotmail.com

Turn ’em over, Donald!

Donald J. Trump has just been punched in the gut once again by a federal judge who says the former POTUS cannot keep his income tax returns away from congressional review.

So … does that mean he turns ’em over to Congress? Not just yet, no doubt.

But he damn sure should. I want to see what’s in them, you know?

Trump has been fighting off and on ever since he declared his presidential candidacy in 2015 whether to release the tax returns to public scrutiny, as other candidates have done since 1976. He said he would; then he said he wouldn’t or couldn’t; then he changed his mind again; then he said the Tax Man was auditing them, which means he cannot release them.

A federal judge Tuesday tossed out a lawsuit Trump had filed to keep the tax returns from Congress. He said Congress is entitled to review the returns, despite Trump’s various specious claims.

It’s all baloney. Trump knows it. So do the rest of us.

I have this suspicion we’re going to learn a whole lot more about Trump’s “fortune” than we do now. That isn’t as rich as he claims to be. That he has business dealings with suspicious characters. That he gives practically nothing to charity.

You know. Fun stuff like that.

C’mon, Mr. ex-POTUS. Release ’em!

johnkanelis_92@hotmail.com

What about the debt, lawmakers?

Congressional Republicans have this bizarre habit of backing themselves into corners from which they have difficulty exiting.

They are digging in once again on the issue of increasing the nation’s debt ceiling. U.S. Senate GOP leader Mitch McConnell — yeah, that guy — is threatening to shut ‘er down. He won’t back any effort by Democrats to increase the debt ceiling.

What does that mean? Total calamity, according to every serious economist on Earth. It would mark the first time the U.S. of A. has defaulted on its debt. It would throw the markets into total free fall. It would send a signal around the world that the United States no longer can be trusted to make good on its obligations.

Hey, is this what they call an “America first” priority?

It’s an “America last” notion, if you want my opinion on it. You didn’t ask for it, but I offered it anyway.

What are we going to do when the nation’s government funding expires at the end of the week? We had better beat some reason into the thick skulls of GOP lawmakers who don’t want to make many millions of Americans angry over their stubbornness.

johnkanelis_92@hotmail.com

Vote ‘no’ and take the dough

I should direct these comments to the Republicans who comprise the Texas congressional delegation.

All of ’em, to a person, voted “no” on President Biden’s infrastructure proposal and on the $1.7 trillion package billed as Build Back Better.

Some of them have issued harsh policy statements criticizing Biden as well as their Democratic colleagues, calling them “socialists” and “spendthrift” liberals who don’t give a damn about the national debt.

Ah, yes. But … will they say “no” when the government starts parceling the money to their states or congressional districts? Hardly!

Indeed, I fully expect some of them to actually use these improvements as grist for their re-election efforts in 2022 and beyond. Will they realize or recognize the hypocrisy of that message? Not even, man!

johnkanelis_92@hotmail.com

Brickbats go with the bouquets

The Financial Times believes President Biden must understand he needs to take responsibility for the inflation that has plaguing the nation.

The London-based publication wrote this: Biden has promised to “build back better” after the coronavirus pandemic. His big spending has already helped to deliver a historic recovery, with US national income back at a level above its pre-pandemic peak. The challenge will now become harder: to demonstrate he can deliver higher living standards without jeopardising his pledge to tackle climate change.

The Financial Times notes as well that President Carter will be marked indelibly by the inflation that consumed his single term in office. Yes, there was that and the Iranian hostage crisis of 1979-81. The Times is correct, though, to project that Biden faces potential defeat in 2024 if he doesn’t sidle up to the issue now before it gets totally out of control.

I am not sure how much of the inflation issue is a direct result of presidential policies. He did inherit that pandemic and the “supply chain” crisis that has developed while the nation seeks to subvert the coronavirus.

It’s happening on President Biden’s watch. He cannot forestall a solution simply by blaming his predecessor.

Let’s get busy, Mr. President.

johnkanelis_92@hotmail.com

Supply chain woes: Who saw this coming?

Could anyone on this good Earth have foreseen that “supply chain” trouble that has gripped us as we seek to recover from the pandemic?

I recall hearing not a single thing looking forward about it as we struggled to come to grips with the COVID virus that has killed more than 700,000 Americans. I recall no analysis. No crystal ball-gazing. No suggestion that this would await us as we fought to restore some normal activity to our lives.

Yet here come the recriminations. President Biden is getting hammered over this latest issue, not to mention the other matters that have plagued him.

I won’t blame the current president. I won’t lay any blame on his predecessor, Donald Trump. There were enough crises occurring in real time that no one could have predicted with any semblance of certainty that we would have trouble receiving goods and services once we started our way back from the peril.

The criticism now seems cheap and unnecessary.

johnkanelis_92@hotmail.com

POTUS walks back a demand

By John Kanelis / johnkanelis_92@hotmail.com

President Biden had me, then he lost me. Then he got me back again.

Biden and a bipartisan group of U.S. senators hammered out a deal on an infrastructure plan. They marched out in front of reporters at the White House and declared “We have a deal.”

Then the president said this: “I expect that in the coming months this summer, before the fiscal year is over, that we will have voted on this bill, the infrastructure bill, as well as voted on the budget resolution. But if only one comes to me, this is the only one that comes to me, I’m not signing it. It’s in tandem.”

As the saying goes: Oops!

GOP senators accept Biden walk-back on infrastructure | TheHill

Biden signaled right then that he wanted a more expensive and expansive infrastructure deal that only Democrats could approve. He drew complaints from Republicans and from Democratic moderates who worked their tails off trying to hammer out this deal.

Then the president in effect took back what he said.

To which I say that’s a good thing for the cause of good government.

President Biden should take the deal worked out. It’s not as much as he and many others want to spend but, hey, a trillion dollars-plus is still a lot of dough.

As for Biden’s walk-back, his change of tune has satisfied at least two members of the GOP negotiating team — Sens. Mitt Romney of Utah and Rob Portman of Ohio. They both said they “trust” the president and are going to work to ensure that the infrastructure deal upon which they agreed gets through Congress and lands on Biden’s desk.

Americans want their bridges, highways and rail lines to be safe for human activity. They want their seaports and airports to be modernized and made safe for travel. The Internet has become an increasing part of Americans’ lives and they want high-speed Internet service. The infrastructure deal is widely popular among Americans.

The deal worked out by members of both major parties signals the kind of cooperation, camaraderie and common good the president said once was a hallmark of his days as a senator and even as vice president.

He should take this deal all by itself. As for the rest of it, fight that fight another day.

See? Compromise works!

By John Kanelis / johnkanelis_92@hotmail.com

“We have a deal.”

So said President Biden today as he announced a bipartisan agreement to overhaul the nation’s infrastructure.

Now … is this the perfect deal? No. It isn’t. It is the product of Democrats and Republicans coming together, demanding things from the other side, then deciding that absent being able to get all the things they wanted in the deal agreed to a package that is a good bit less than what President Biden wanted to spend.

This is how government is supposed to work.

Fascinating! As The Hill reported: Biden acknowledged the deal would not include proposals he’s made for spending to help American families, but firmly endorsed the deal on infrastructure in unusual remarks just outside the White House with the bipartisan group of senators looking on.

The deal agreed upon would spend $1 trillion. It would repair thousands of miles of roads and bridges, provide high-speed Internet to virtually every home in the country.

More from The Hill: The framework includes $579 billion in new spending for a total of $973 billion over five years and just over $1.2 trillion over eight years.

It allocates $312 billion for transportation programs, including roads, bridges, airports and electric vehicles infrastructure. The remaining $266 billion would go to water infrastructure, broadband, environmental remediation, power infrastructure and other areas. 

Biden announces bipartisan deal on infrastructure | TheHill

The deal announced today strikes me as a classic ploy that President Biden played with perfect pitch. He wanted to spend $2.2 trillion — or so he said. Biden might have known from the get-go he wouldn’t persuade GOP members of Congress to agree to spending that kind of dough. So he settled on a still-significant amount of money.

He said he didn’t get all he wanted. Conservatives in Congress didn’t, either. Nor did their progressive friends.

However, the negotiating team of equal numbers of congressional Republicans and Democrats were all smiles today as they announced the framework of a deal.

Let’s get it done. Shall we?