Recession-Warning-Media-Confusion-Bob Davis Podcast 855

What Is All This Talk About Recession

These days it’s hard to tell who to believe. In many ways it’s the best economy ever. The best time to look for a job. An unprecedented economic boom. Why is everyone suddenly talking about a recession. Learn more in Recession-Warning-Media-Confusion-Bob Davis Podcast 855.

Not Making Predictions

First of all I am not here to tell you the economy is in the tank, or that it is booming.

Recession! Depression! Do I have Your Attention Now?

Truth is if you put the words recession, bust, or depression in an article you’re going to get people’s attention. In addition it doesn’t hurt to have a couple of historic drops in the stock market.

Now that I have your attention…Listen to Recession-Warning-Media-Confusion-Bob Davis Podcast 855.

Market Drops and Yield Curves Mean New Media Story Lines

It doesn’t matter if the markets recover from those drops.

What matters is now the media has a story line that predicts doom and destruction.

Fool’s Errand

Especially relevant is a lesson I learned a long time ago. It doesn’t matter how well informed a commentator might be. Making predictions about a force of nature like the world’s largest economy, is a fool’s errand.

Shallow Expansion, Debt and Slowing Growth

Even more, it is true our economy is growing and we are enjoying the longest economic expansion in memory. It’s also true it’s a shallow expansion and that growth just above the inflation line, isn’t really booming. Moreover, the expansion is getting pretty long in the tooth, as the say.

There Is A Season

In contrast like the seasons, economies operate on a cycle. Truth is anyone who predicts a recession will ultimately be right. Just like fall into winter recessions have a purpose. Economic contractions kill off the weak plants and animals and insects so the strong and grow again in the spring.

So when the yield curve inverts and the market drops it is certainly worth paying attention.

Seems like we’re missing something though. While the politicians and talking heads trade insults about who’s predictions are right, what are we thinking about?

Election Year Economics

In conclusion what plans to we the people have for the future economy of the United States. I sat down to do a podcast on the yield curve, claims about unemployment and recession predictions. I ended up with an essay on the pitfalls of talking economy in an election year, the ballyhoo on the current economy when the real questions aren’t even being asked. Let alone answered.

It’s 1950 In America…Coal Mines and Manufacturing, right?

Where are we going? What are we trying to accomplish? What kind of economy do we expect in the future. Is it really manufacturing jobs in Ohio and Coal Mines in West Virginia?

Sponsored by Ryan Plumbing and Heating of Saint Paul and Reliafund Payment Processors

Recession-Warning-Media-Confusion-Bob Davis Podcast 855

 

Trump-Republicans-Spending-Debt-Bob Davis Podcast 850

Another Trillion Dollars

This week the president’s budget deal adds a trillion dollars to the National Debt. These days it’s depressing when so called conservatives say, “Deficits Don’t Matter“. Learn more in Trump-Republicans-Spending-Debt-Bob Davis Podcast 850.

Trump Republicans Spending and More Debt

Above all, Trump’s spending is on pace with Obama first term red ink.

I’ll Pay Off The Deficit In Eight Years

Moreover campaigning in 2016, Trump said he’d pay off the deficit in just eight years. In those days the deficit was 20 trillion. It’s now almost 23 trillion.

Current Federal Debt Is Unsustainable? Bring It on!

As the president began his second year in office, the General Accounting Office released a report on the national debt. The current Federal Fiscal Situation is unsustainable, it said. More in Trump-Republicans-Spending-Debt-Bob Davis Podcast 850.

Republicans Addition To Debt Peaks In 2030

In fact, the GAO report showed US debt beginning to rise and peak in 2030, long after Trump has left the White House.

American Cities Are Broke Again

Over 70 US cities are in deep financial trouble. New York City is broke. Los Angeles isn’t far behind. Chicago is in a tailspin. I’ll explain it in Trump-Republicans-Spending-Debt-Bob Davis Podcast 850.

The Amount of Spending And Debt Is Shocking

When it comes to cities, counties and states investigators have to use forensic accounting to find out what’s going on. Even in small towns and counties across the country those investigations are uncovering a shocking amount of spending and debt.

Bonding On Bonding

Even more, states use bonding bills to get around balancing budgets. Therefore creating more debt through bonding.

Corporate Debt Binge

US corporations are on a debt binge too. Corporate debt is skyrocketing. It’s now 45 percent of our GDP. Much higher than during the 2008 crisis and dotcom bubble.

Americans Saved The Economy In The 2nd Quarter With More Debt

In addition Americans are more indebted than they were before 2008. US Household debt is 13.3 trillion in the second quarter. Much of it auto loans. Certainly Americans don’t save enough.

Conservatives Say Don’t Worry

Republicans say debt doesn’t matter and democrats have a new monetary theory. There’s nothing to worry about. Right? The US can “print” as much money as it needs as long as it prints US dollars.

Politicians Handing Out Goodies

Goodies like free college, single payer health, a green new deal, a higher minimum wage and guaranteed full employment are just around the corner. Just simply print money.

[Editor’s Note: In this podcast I used a quote from President Trump saying that he said, “No politician has ever been thrown out of office for not spending money. In fact he is reported to have told Senator McConnell, “No politician has ever lost his job for SPENDING money.”)

Forget Rome, England, Spain, Germany, Venezuela and Zimbabwe.

Sponsored by Lacroix Law, Reliafund Payment Processors and Ryan Plumbing and Heating of Saint Paul

Trump-Republicans-Spending-Debt-Bob Davis Podcast 850

 

 

Plan Beats No Plan-Bob Davis Podcast 828

Political Winners Need A Plan

The 2020 presidential campaign is already underway. Democrats are already touting their plans from free health care to free college. Thing is, a plan beats no plan when it comes to politics these days. We’ll talk about it in Plan Beats No Plan-Bob Davis Podcast 828.

Calling Someone A Socialist Is Not A Plan

Certainly this week attention has been focused on the president’s statements regarding unions. Meanwhile lesser known state and local ‘conservative’ republicans attack democrats for being ‘socialist’.

The US Is Already Socialist

Especially relevant is whether this approach will work.

Come to think of it, doesn’t the United States increasingly have a “controlled market economy” meaning the government already ‘controls the means of production’?

Trade Protection and Government Built Infrastructure – Capitalist right?

Moreover President Trump touts trade protection, and lately government appropriation of 5G wireless technology. It’s also a republican president pushing for ‘infrastructure’ development. Republicans even have their own ‘Single Payer‘ health plan where big insurance companies implement the federal program. This is capitalism? Learn more in Plan Beats No Plan-Bob Davis Podcast 828.

…People In Glass Houses

State republican representatives and senators who are real estate agents, housing developers, doctors and lawyers find themselves voting for ‘socialist’ ideas from MAO Clinic funding to laws regarding how you use your cell phone while driving.

Moreover from TR to Trump, republicans have been advocating for ‘progressive’ and socialist policies. Would you believe German Socialists actually supported Abraham Lincoln back in the day?

GOP Voters Hate Democratic Socialists But Don’t Take Their Social Security Away

In addition rank and file republican voters rely on government pensions, social security, ObamaCare, Medicare, Veterans Benefits and all kinds of tax breaks for their businesses. Good republican ‘capitalists’ take every legal tax benefit they can get from real estate to Tesla’s in the driveway. Rural farmers who voted for Trump love their subsidies. But socialism? God no!

Capitalism Is Radical

Seems to me that a real Capitalist Agenda would be seen as quite radical these days. Most Americans haven’t experienced true Capitalism. The means of production, from stock trades to light rail, have indeed been controlled by local, state and federal governments for a long time.

Where’s The Plan, Stan

Finally if republicans are against socialism they’d better get busy designing a capitalist plan.

Name Calling and MAGA

In conclusion, sadly a republican capitalist plan will never emerge. Much easier to call democrats socialists and shout ‘build the wall’.

That’s a plan, right?

Sponsored by John D Scott Personal Injury Attorney and Reliafund Payment Processors

Plan Beats No Plan-Bob Davis Podcast 828