3 Sunday Morning Thoughts – Aug 18

Every Sunday morning I send out three thoughts.

Sometimes these thoughts are on the economy, life, or hard assets.

If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…

So, here we go.

Here are three Sunday morning thoughts for you:

1. If anyone has been experiencing increases in costs. It’s our farmers. The problem won’t be solved with price controls, the problems are the intervention.

To be Captain Obvious…

Our food comes from the ground.

When you look at the chart below, you can see the red line is the highest.

The red line is the “Food Index.”

It is a metric used to measure the price or value of food products directly from farms, typically excluding costs associated with processing, packaging, and retailing.

So the cost to produce and deliver food has gone up drastically since 2020.

Changes in CPI(purple) has gone up 25.1%.

Changes in PPI(black) has gone up 26.8%.

And the cost for Farmers to process, package and deliver their food has gone up 30.7%.

The majority of the increase in costs are coming from interventions in the oil and gas industry, as well as green regulations to reduce CO2 emissions from farms.

If a politician wanted to bring down costs, they could start by removing interventions like these.

2. Federal Fund Interest rate cuts will not solve parabolic interest payments on public debt.

Interest payments on public debt broke past $1Trillion this year.

Last year, interest payments passed military spending on the federal budget.

If federal fund interest rates(FFR) stay as they are, interest payments will surpass social security…

Becoming the undisputed champion of sucking services from taxpayers.

What happens if FFR go down?

If the Fed decides to begin cutting interest rates in September, even a drastic decrease would not reduce interest payments on public debt.

The yellow line in the chart above, still shows interest payments increasing.

No one will vote for what I’m about to suggest, but…

If we want those interest payments to go down, there would need to be a ridiculous amount of cutting to the federal budget’s biggest line items.

3. Kamala has been campaigning with a full on commie incantation for the past four years. Everyone took it for word salad. It’s not.

You see it everywhere.

She’s been repeating her campaign slogan over, and over again for the past four years:

“We can see what can be unburdened by what has been.”
It’s a full on commie incantation invoking Marxist revolutionaries of the past…

You see, Marx saw history as something defined by capitalism, which demonstrated the inequality between the ruling, and working class.

If there was a revolution in to some new utopian society, “the people” could break the cycle.

Every Marxist revolutionary of the 20th Century saw themselves as creators of a “new society,” unburdened by its past.

Mao seized control of the land, the language, and what little tools the average Chinese person had to produce their own wealth.

Lenin did the very same thing in Russia. He seized the land, set price controls, and then used language to make villains of those who refused to hand over their private property.

In every attempt to create a socialist utopia, Marxists envisioned how to unburden the masses from the evils of capitalism, and capitalism’s foundation, their private property…

Creating some “new society.”

That is what Kamala has meant the past four years in almost every speech, Communism.