Category Archives: economic news

Keep it in perspective

I couldn’t resist sharing this item that showed up on my social media feed this evening. I never really know who comes up with these gems; I do learn something from them.

My lesson here? It is that the pain, suffering, bloodshed, misery, anxiety, mourning and grief that Ukrainians are feeling at this moment put every little petty annoyance we might have in their proper place.

Gas prices going up? I don’t like it any more than the next person. However, it is good to keep some matters in context — such as what this message suggests we do.

More than 1 million Ukrainians reportedly have fled their country ahead of the Russian military onslaught initiated by the madman Vladimir Putin. Those who have stayed behind to fight the Russians are putting their lives in dire peril.

I won’t like paying more for the fuel that goes into my truck. However, I don’t believe I should bitch about it.

johnkanelis_92@hotmail.com

Will sanctions hurt Putin?

Jimmy Carter usually opposes U.S. imposition of sanctions on other nations, believing that such action hurts innocent citizens of the countries we intend to punish. With all due respect to the former president, I am going to wish that sanctions we deliver to Russia when that nation goes to war with Ukraine deliver maximum pain to the country, but more importantly to its leader.

Russian strongman Vladimir Putin today announced he recognizes two Ukrainian provinces as being “independent.” The decision prompted President Biden to levy limited sanctions involving those breakaway provinces. There will be more — much more — to come the moment Putin orders the tanks and troops to march in Kyiv, the capital of Ukraine.

Biden is caught in a bit of a bind. There can be no way on Earth he can send U.S. troops into battle with the Russians, even though he has dispatched several thousand American forces to eastern Europe. The only option we have is to levy severe and punishing sanctions on Russia, which Biden pledges to do.

What do those sanctions look like? I suppose it would involve freezing of Russian assets in banks around the world, presuming President Biden has enlisted the support of our worldwide allies. They should involve the freezing of Putin’s personal assets. There well could be suspension of oil and natural gas shipments to western Europe from Russia, which would take a huge bite out of Russia’s third-world economy. There needs to be a suspension of technology exports to Russia from this country and from the European Union.

Will any of this dissuade Putin from carrying out his ambition to bring Ukraine back under Russian control? Probably not. He just needs to pay dearly for his adventurism.

johnkanelis_92@hotmail.com

Bill Gates: medical expert?

Bill Gates made zillions of dollars marketing a computer company he co-founded in the Seattle area. He’s a genius at selling his product, as his standing among the world’s richest people will attest.

However, even Bill Gates might be a bit out of his league when he starts offering medical prognostications, such as predicting that the coronavirus pandemic is going to erupt again.

Dial it back, Bill.

CNBC reports: Speaking to CNBC’s Hadley Gamble at Germany’s annual Munich Security Conference, Gates, co-chair of the Bill & Melinda Gates Foundation, said that a potential new pandemic would likely stem from a different pathogen to that of the coronavirus family.

https://www.msn.com/en-us/money/markets/bill-gates-says-covid-risks-have-dramatically-reduced-but-another-pandemic-is-coming/ar-AAU2wVm

How does “Dr.” Gates know this? I don’t know. I am sure he’s talked to some medical pros about this, so now he’s throwing himself in front of a bold prediction.

I am not going to react dramatically and directly to a medical diagnosis offered by a computer marketing genius. I believe Bill Gates ought to stick with what he knows. OK? Now, sit down, Bill, and count your money.

johnkanelis_92@hotmail.com

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