Originally published at: The US is Like a Giant Zombie Company – Peak Prosperity
In a recent episode of the Tom Woods Show, former U.S. Congressman David Stockman discussed his book “The Great Deformation,” critiquing economic policies of the 20th and 21st centuries, particularly the 2008 bailouts. Stockman argued these bailouts were unnecessary and driven by flawed economic theories. He emphasized historical context, noting that from 1951 to 1962, the Federal Reserve’s balance sheet did not grow, yet the economy prospered. Stockman also touched on current political issues, speculating on the potential for a contested Democratic nomination if President Joe Biden steps down. He highlighted Robert Kennedy Jr.’s understanding of the Federal Reserve’s impact on the economy and his stance against perpetual wars, suggesting Kennedy could disrupt the political landscape.
Meanwhile, America is reeling from an assassination attempt on former President Donald Trump at a campaign rally in Pennsylvania. The incident, witnessed live on television, has left the nation deeply divided. Social media is flooded with messages of support for Trump, while some criticize media coverage for downplaying the severity of the incident. Reactions from politicians have varied, with some Democrats making controversial statements. Despite the attack, Trump remains determined to continue his campaign, receiving public endorsements from high-profile figures like Elon Musk. The FBI is actively investigating the incident, urging the public to provide any information that could assist in the investigation.
In the corporate world, GE Appliances announced it will lay off 4% of its salaried global workforce due to ongoing industry challenges. The Louisville-based company, one of the city’s largest employers, cited cost-cutting measures that were insufficient to offset pressures. The layoffs will affect corporate positions but not union-represented employees. GE Appliances has committed to supporting affected employees through the transition, offering severance packages, continued medical coverage, and professional outplacement support.
James Lavish, founder of the Bitcoin Opportunity Fund, likened the U.S. government to a “zombie company” due to its massive deficits. He explained that government revenues are overwhelmed by mandatory expenses, leading to a $1.5 trillion deficit even before discretionary spending. This situation forces the government to borrow more, exacerbating the debt spiral. Lavish highlighted “fiscal dominance,” where government spending overshadows the Federal Reserve’s efforts to control inflation. He noted challenges in selling U.S. Treasury bonds and the potential for stagflation. Lavish advised owning hard assets like gold, silver, Bitcoin, and real estate to protect against long-term structural inflation.
Michael Pento, a money manager, echoed concerns about the economy and financial markets, warning of liquidity drying up and potential market corrections. He criticized the Federal Reserve’s past policies for fueling asset bubbles and pointed out the disparity between the top 20% of the economy and the struggling bottom 80%. Pento suggested that natural market forces correcting imbalances could lead to a severe recession or depression. He advised reducing portfolio volatility, focusing on low-beta ETFs, utilities, and gold, while being cautious about shorting the market. John Lodra of New Harbor Financial shared similar concerns, emphasizing the importance of active management and preparedness for various market scenarios.
Sources
David Stockman on The Tom Woods Show: Revisiting Economic History and Critiquing Modern Fiscal Policies
“The history is important because I know it’s a trite thing to say about if we don’t learn the lessons of history, we’re doomed to repeat them.”
Source | Submitted by AndyS62
Assassination Attempt on Former President Trump at Pennsylvania Rally Shocks Nation
It is a sad, sad day for America. It is hard to find the words to describe the shock and the horror that people are feeling right now after many of us were witnessing on live television the assassination attempt on former President Donald Trump at a campaign rally in Pennsylvania.
Source | Submitted by rhollenb
GE Appliances to Lay Off 4% of Global Salaried Workforce Amid Industry Slump
“The appliance industry is down 4% year to date and even more challenging than anticipated,” Wood said in a statement.
Source | Submitted by Justin Hamilton
US Economy: A Zombie Company on the Brink of Fiscal Collapse
If the US was a company on the New York Stock Exchange, you know they would be called a zombie company.
Source | Submitted by rhollenb
Financial Expert Warns of Looming Economic Collapse: “This is Not Your Grandfather’s Stock Market”
“This is not your grandfather’s stock market.”
Source | Submitted by rhollenb