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dissonant1's avatar

Assuming the Republicans win the midterms (both Senate and House) this sets up a really interesting scenario. Here is Luongo (from https://tomluongo.me/2022/10/06/31-trillion-dollar-question-can-fed-afford-pivot/ ):

"Congress needs to rein in spending to previous levels. The Fed is doing its job raising the cost of capital to divert money out of the unsustainable and into the sustainable. Monetary policy can signal entrepreneurs and investors to rebuild what’s degraded and look to where the economy has been neglected. But it can’t do that if Congress also wants to get in the act spending money that fuels keeping prices too high and crowding out investment where it wants to go, rather than where Congress wants it to go."

I couldn't agree more. Is this Liberaltarianism (did I get that right)? Whatever, fiscal responsibility and promotion of free capital flow have traditionally been promoted as Conservative ideals. Will the Republicans finally (FINALLY!) act according to their words and not their deeds of the last several decades? That could well be the key to the continued economic viability of this country. If Trump is elected again, will he hold the Republicans feet to the fire to be fiscally responsible? Or is he in reality (given political realities) a fiscal Democrat? Are the people he has endorsed for election fiscal conservatives?

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AmericanCardigan's avatar

Gonzalo Lira is fantastic. Gonna have to listen to this over weekend.

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Mark Wauck's avatar

Super discussion.

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Mark Wauck's avatar

Tom Luongo (Give Deflation a Chance!)

@TFL1728

Bingo!

I know this because Powell knows this

Quote Tweet

Santiago Capital

@SantiagoAuFund

The US Government cannot fund itself at 5% forever.

But it can fund itself at 5% for a lot longer than the UK can fund itself at 4.5%, a lot longer than Europe & China can fund themselves at 3%, and a lot longer than Japan can fund itself at 1%.

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perle's avatar

It's not the Democrats, its their spending and spam. This has to stop, especially as none of this spending is designed to improve productivity and the GNP. And the regulations, killing small business. Climate control, indeed! Woke, anybody?

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Ray-SoCa's avatar

This article is troubling:

37% of US Small Businesses Can’t Pay Rent

https://www.independentsentinel.com/37-of-us-small-businesses-cant-pay-rent/

Uk has lots of residential variable rate mortgages, us is fixed now days. U.S. commercial loans are variable. Plus the impact of interest rates on the us Gov debt.

Interesting times…

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Mark Wauck's avatar

In the video I only partially listened to Krainer talks about how small businesses are being crushed.

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Steghorn21's avatar

Let's hope Tom is right. What is certain is that he is spot on about who are enemies are. Who are friends are is harder to tell. Davos will fail but the bodycount will be high.

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Nov 5, 2022
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Mark Wauck's avatar

Luongo is on your side. I don't know how he thinks it was done, but definitely he believes irregularities decided it.

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Nov 3, 2022
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AmericanCardigan's avatar

Elite’s groaning over Musk’s $8 “premium” is because it nullifies their status.

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Mark Wauck's avatar

True. And just as I don't see Hudson's solution as palatable, I don't see Luongo's liberaltarianism offering a viable defense against the ruling class. That just leaves the door open for more abuse.

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Nov 4, 2022
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Mark Wauck's avatar

Thanks, will check it out.

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Nov 3, 2022
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Nov 3, 2022
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Mark Wauck's avatar

Interesting development here in IL. Zhou and Kama Sutra are coming to campaign over the weekend. IL has been so Blue that that should not even be a consideration--they should be going to swing states. Something's up. I'm not predicting anything re IL, but it's a sign of shifting.

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