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“A Great Country Does Not Borrow Its Way to Prosperity“– former Trump economist Stephen Moore.
The White House’s bait & switch on a supposed infrastructure compromise showed “Republicans got snookered,” but also “Joe Biden overplayed his hand,” says former Trump economist Stephen Moore.
“We’re looking at, if Biden passes his whole agenda, increasing the national debt by about $22-T over the next decade,” Mr. Moore said in an interview.
“I’m really surprised that the Republicans thought they could make an honest deal with Biden, because he’s not been an honest broker,” Mr. Moore added.
“I am most worried right now about the runaway spending in Washington, because Biden is not backing off on this, and I’m worried about the big tax increase he wants to pass in the fall,” Mr. Moore said.l
“If Republicans will stick together, I think you’re going to get [West Virginia Democrat Sen. Joe] Manchin, I think you’re going to get [Democrat Sen. Kyrsten] Sinema of Arizona, and we are going to get more and more Democrats who were voted in in 2020 who are going to say, ‘Wait a minute. This is not what my constituents want.
“I hear there may be 8 to 10 Democrats in the Senate who are very nervous about how far to the left Joe Biden is trying to take the country.”
From Capital Hill
US Senate Republican leader Mitch McConnell (KY) urged Mr. Biden Monday to get the 2 Top Democrats in Congress to abandon a plan to link a $1.2-T bipartisan infrastructure deal to a larger reconciliation package that Republicans oppose.
In business average interest costs based on a company’s revenue is 6% of total revenues. Beyond that we can assume a company is bankrupt. Now compare this to our Government where the interest costs to total revenue is 23.74% of total revenue or 4 times the standard we use in business.
The only Question left is how will future generations survive? Bluntly, they will not and today Congress does not care, and that compounds the problem.
So, can interest rates increase?
“I can not see how which is good for the real estate market given the available consumer capital available fueled by the stock market itself but bad for consumers. Yes, look out for we might expect an acceleration in inflation which in reality is running the the 5-10+% area, especially in food products and gasoline at the pump which hits the consumer the hardest.
“Perhaps, in the 2022 election, the American electorate will correct this,” says LTN;s contributing economist Bruce WD Barren.
Looking Ahead: The Conference Board’s Consumer Confidence Index for June, the FHFA Housing Price Index for April, and the S&P Case-Shiller Home Price Index for April will be released Tuesday.
Monday, Mega-caps drove S&P 500 and NAS Comp further into record territory
Russell 2000 +17.6% YTD, S&P 500 +14.2% YTD, NAS Comp +12.5% YTD, DJIA+12.0% YTD
Have a positive day, Keep the Faith!