Tag: economy

Elizabeth Warren Proves She Has No Idea How the Basic Concept of ‘Supply and Demand’ Works

Massachusetts Senator Elizabeth Warren was recently mocked on CNBC for fearmongering over the economy and getting tons of stuff wrong in general.

This is what Warren does now. It is what she has done every single day since the 2024 election. she complains and fearmongers about Trump and doesn’t even seem to care if what she is saying is even remotely true.

Now she is showing the world that she has no idea how the simple concept of supply and demand works.

Townhall reports:

Elizabeth Warren Proves Once Again That She Has No Idea How Basic Economics Works

It’s a fairly good rule of thumb that if Elizabeth Warren is against something, it’s probably a good thing that you should support. Or, at the very least, it reveals just how ignorant she is about how our supply-and-demand economy actually works.

She’s now waging a war against “dynamic pricing,” which she claims is how “giant companies … squeeze you even more.”

Yes, when people want more ice cream in the summer, the demand goes up while supply usually stays the same. So prices will go up. Same thing with tea bags in the winter.

Consumers often accept dynamic pricing. Airline tickets, for example, vary by price based on the day of the week and the season. Hotel room prices are subject to dynamic pricing, too.

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$40tn debt: U.S. unhinged empire is a threat to world peace

The United States hit a dubious milestone this week, announcing that its national debt had exceeded $40 trillion. No other nation comes close to this level of absolute financial indebtedness.

This is not simply a matter of out-of-control financial bankruptcy. It is an ominous sign of an unhinged empire that is desperately trying to salvage its historic failure by scorched-earth tactics of endless war.

The world is being held hostage by a pathological system that is no longer tolerable for the sake of humanity, development and peace.

Perhaps of more significance than the total figure – astronomical though that is – is the accelerating pace of U.S. debt growth. Since 2016, the arrears have doubled, up from $20tn. Over the next decade, the U.S. national debt is predicted to climb to $64tn.

In the year 2000, the American account stood at a “mere” $6tn. The last quarter of a century has seen the arrears pile up from endless wars, reckless military spending, and massive tax cuts for the corporate elite. The debt has become irreversible under prevailing policies.

Servicing interest on the arrears now runs at $1tn a year and is one of the largest federal budget expenditures. This means that the United States is caught in a debt spiral from which it cannot extricate itself. It is digging a deeper and deeper hole.

There are profound implications for the United States as a society. As Robert Reich, a former Labour Secretary, noted, the servicing of runaway debt means less money for “schools, healthcare, roads and bridges and social safety nets.” The grim conclusion is that social inequality in the U.S. – already at record levels – will become even more destructive. That speaks of social immiseration and collapse.

There are also far-reaching detrimental impacts on the U.S. and global economy. Even mainstream commentators warn of a historic fiscal crisis pending for the United States from soaring interest rates and hyperinflation. That, in turn, will be transmitted to the rest of the world, especially those countries with large holdings of American debt.

But the exceptional U.S. financial mess is not just a matter of economics. It is an urgent issue of global peace and security.

There are several causes of mounting American debt. However, the main driver, by far, is that nation’s relentless warmongering and militarism, as economist Jeffrey Sachs and other commentators have long contended. It is systemic and chronic.

This year saw the United States celebrate its 250th anniversary since its founding as a modern state. For most of its history, about 95 per cent of the 250 years, the United States has been at war, either through conquest or subterfuge, according to its own Congressional records and eminent historians like David Vine.

No other modern nation comes close to this bellicose conduct, and that is a reason why no other nation comes close to the level of financial debt of the U.S.

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US Set to Impose 50% Tariffs on $20 billion Worth of Canadian Products

The United States is set to impose 50% tariffs on $20 billion worth of Canadian products early Saturday after last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies.

President Donald Trump’s import taxes will hit about 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.

“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week. Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” U.S. Trade Representative Jamieson Greer said in a statement read to reporters on a press call shortly before midnight.

Canadian Prime Minister Mark Carney responded, “Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

Carney said his government would announce additional support for Canadian workers and businesses in the coming days.

Greer said the U.S. offer was “forward-looking” and included “a historic economic and national security partnership.”

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The Strait of Hormuz Is Repricing the Entire World Economy

The politicians continue to speak about the Strait of Hormuz as though this were merely a regional dispute between Iran and its neighbors. That is complete nonsense. The strait is one of the most important arteries in the global economy, carrying roughly one-fifth of the world’s oil and gas shipments. Brent crude has moved above $91, but the headline price of oil is only the beginning. The real economic damage appears in shipping rates, insurance premiums, refinery margins, diesel prices, electricity costs, and ultimately government borrowing. War does not remain confined to the battlefield. It enters every household through inflation.

Washington claims the strait is open while Iran insists it remains closed. Both statements are political propaganda because it is the shipowners, insurers, and commodity traders who determine whether a waterway is commercially open. A tanker can theoretically pass through Hormuz, but that means nothing if the insurance premium becomes prohibitive or the crew refuses to accept the risk. Most politicians have never operated a business and do not understand that commerce depends upon confidence—not government declarations. Once confidence collapses, trade will retreat regardless of how many officials stand before cameras insisting that everything remains under control.

This is why the cost of the conflict cannot be measured solely by the number of barrels temporarily removed from the market. Every vessel delayed or redirected reduces available shipping capacity and increases freight rates elsewhere. Insurers must reprice the probability of a tanker being damaged, captured, or destroyed. Refineries must compete for alternative supplies, while countries dependent upon Gulf energy begin building precautionary inventories. Traders add a geopolitical premium because nobody knows whether the next missile will strike a ship, a refinery, a pipeline, or an export terminal. These costs compound through the entire system long before the average person notices the increase at the gasoline station.

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Mamdani’s City Grocery Store Official Explains How Their Plan to Keep Privately Owned Stores in Business Will Make Things Even Worse

A woman who is supposedly the lead person from Zohran Mamdani’s team for city-owned grocery stores was recently asked if their plan will put privately owned stores out of business, which, it obviously will.

She explained that privately owned stores that are in trouble will be able to apply for grants from the city, which is only going to make things worse, and far more expensive.

To recap, taxpayers pay for city-owned grocery stores and then, when those stores threaten privately owned stores, taxpayers will fund grants for those stores. The taxpayers just keep paying and paying, no matter what happens.

Townhall reports:

In an interview on Wednesday, Waverly Neer, a senior vice president of the NYC Economic Development Corporation (NYCEDC), which is overseeing Mamdani’s city-run grocery-store rollout, revealed that one proposal under consideration would let nearby grocers apply for grants to offset revenue lost to the city’s subsidized stores. In other words, New York City may use taxpayer money to undercut local businesses, then use more taxpayer money to compensate them for the damage they caused.

“I think ultimately the goals of these locations, not just here in East Harlem, but you know, any borough location is to be complementary to the neighborhood,” Neer said. “And really, you know, rising tides, right? We can we can all cooperate and work together in a meaningful way. ”

“Do you mind? What is the I’ve heard that that term from EDC officials that these are meant to be complementary. What does that mean?” Spectrum News NY1’s Dan Rivoli asked. “What does that complimentary mean in terms of policy operations and things like that? ”

“Yeah, I think we’re, you know, as an agency, looking at a number of different complementary policies and programs, grants, incentives that can come alongside these grocery stores to support other, you know, local independent businesses that are in the neighborhoods,” Neer replied. “We’re going to continue to listen and we’re going to continue to engage and be, you know, alongside the operator as our partner. Like I said, making sure that we are complimentary to the other businesses that are here in the neighborhood.”

“So other locations, other grocery stores can get grants from the city under this?” Rivoli clarified.

“[That’s] something on the table,” Neer said.

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I’m Sorry, The Feds Wasted HOW MANY TRILLIONS in Improper Payments?

Instead of drawing out the big mystery over how much of your money Washington wastes on improper payments, I’ll just tell you right up front: In the 20 years between 2003 and 2023, the Government Accountability Office (GAO) estimates the total money blown on payments made in error, or in the wrong amount, or with no documentation (!!!) is $2.7 TRILLION.

That’s a two followed by a seven followed by 11 zeroes. That’s almost double what we spent last year on Medicare/Medicaid combined, or on Social Security. It’s triple last year’s defense budget. It’s almost triple the unconscionable amount we spent last year just servicing Washington’s outstanding debt.

It is almost exactly the same amount Washington collected last year in personal income taxes. And if that doesn’t make your blood boil, you must be reading this inside a walk-in freezer, chewing on a mouthful of Lopressor.

The incomprehensible numbers come from a Cicero Institute report earlier this year titled “Rebuilding Public Trust by Ensuring Accountability in Government Spending.”

Dream on, right?

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Washington is driving America toward a debt crisis we can’t ignore any longer

A democracy cannot exist as a permanent form of government. Those words are widely attributed to Alexander Tytler, the Scottish judge and historian who lived from 1747 to 1813. There is, however, some debate over the attribution. Historians and researchers have questioned whether Tytler actually wrote the passage in the form in which it is commonly quoted, whether he expressed a similar idea that was later expanded and attributed to him, or whether the passage originated elsewhere. The exact authorship may be debatable. The warning itself is not.

Here is the prophetic quote:

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years. These nations have progressed through this sequence: From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to selfishness; From selfishness to apathy; From apathy to dependence; From dependence back into bondage.”

This is no idle warning. Look at the United States today and the pattern is hard to miss. This is exactly what is happening today.

Our founders were statesmen who sacrificed much to create a system focused on the common good. They had businesses, farms, and families, and they risked everything to build a limited government unlike any the world had seen. Today we are governed largely by professional politicians, many of whom have never signed the front of a paycheck or run a business. Their careers are spent in government, and they are focused on re-election, promising voters increasingly more, but not paying for these programs.

The late Senator Tom Coburn of Oklahoma, a practicing physician, saw this coming. In his book “The Debt Bomb”, written 15 years ago, he warned of the fiscal path we were on. The problems he described are here.

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More than 400 Canadians filing for bankruptcy every day as rates hit financial-crisis levels

More than 400 Canadians are filing for bankruptcy every day as bankruptcy rates climb to their highest level since the 2008-09 financial crisis.

Nancy Snedden, president of BDO Debt Solutions and host of Your Money on VOCM, says the current pace works out to roughly 17 Canadians filing for bankruptcy every hour.

That’s approximately 408 Canadians every day.

More than 37,000 Canadians filed for bankruptcy during the second quarter of 2026, according to Snedden, representing a 6.9% increase compared with the same period last year.

The increase comes as Canadian households face growing pressure from everyday expenses and debt payments.

A recent Equifax Canada report found more Canadians are struggling to make ends meet and keep up with their monthly bills and debt obligations.

The latest figures also come amid a broader increase in insolvencies. Federal Office of the Superintendent of Bankruptcy data released earlier this month showed June recorded the second-highest number of consumer insolvencies for that month on record and marked the sixth consecutive year of increasing June insolvencies.

Canadian households have spent years dealing with elevated living costs and higher borrowing costs, putting additional pressure on people carrying mortgages, credit-card balances and other debts.

Snedden encouraged Canadians facing financial trouble to seek help and investigate available debt-relief options before their situation worsens.

At the current pace cited by BDO, more than 12,000 Canadians would be filing for bankruptcy every month.

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“Doom Loop” Engaged: US Debt Hits $40 Trillion As Treasury Enters The Endgame

The largely expected news came just hours after Treasury Secretary Scott Bessent unexpectedly announced the Treasury’s latest attempt to rein-in long-term borrowing costs from multi-year highs, the most important component of the growth in debt. The Treasury stunned the market when it said, just two weeks after the latest Refunding Announcement where it should have made this change, that it was ramping up the support for longer-dated securities by “increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities (the 10-year to 20-year sector and the 20-year to 30-year sector).”

The announcement that sent yields plunging, if only for the time being. 

Remarkably, it was less than 5 years ago that US debt hit $30 trillion back in January 2022, illustrating the rapid growth in federal borrowing needs. And there’s no end in sight. 

As Bloomberg notes, “Republicans have long opposed revenue-raising tax increases,” while Democrats are best known for spending like drunken sailors to maximize socialist central planning, and both parties are loathe to sign on to politically toxic cuts to healthcare and retirement benefits for seniors. Many observers anticipate Congress and the administration of the day will only act if forced by a financial-market disruption.

That won’t stop them from talking about it all the time, though, as both parties at least pretend to understand that the US is on a catastrophic collision course should debt growth continue at this pace, and if the AI bet – which is now an all-in for virtually everyone – fails to dramatically boost productivity. Bessent, for one, said a key reason he got involved in politics was to help tackle deficits running at a pace unprecedented for times outside of major wars, pandemics or depressed job markets. So far he has failed catastrophically, and worse, he is doing precisely the kind of activist issuance “Twisting” for which he bashed his predecessor, Janet Yellen.

Economists, the Congressional Budget Office and Wall Street all see little or no progress in coming years for the deficit-to-gross domestic product ratio.

“Optically, I’m sure crossing thresholds like $40 trillion will focus attention on the issue in the near term,” said Matthew Luzzetti, chief US economist at Deutsche Bank AG. “But it does not represent a magical threshold for debt dynamics, and projections have anticipated this outcome for some time.”

More important, Luzzetti said, is the climb in US Treasury yields, which is steadily increasing the cost of servicing the record debt load. Last Thursday, the department’s latest 30-year bond auction resulted in the costliest such sale in a quarter century. A 10-year auction a day earlier drew the highest financing cost at that tenor since 2007, and only today’s announcement which sent yields tumbling prevent today’s 20Y Treasury auction from pricing at the highest yield on record. 

As buyers demand higher yields, that in turn drives up the Treasury’s borrowing needs. With two months left to go in the fiscal year, the government’s tally for interest costs so far for 2026 is $1.37 trillion – a 20% increase on the same period a year before. That in turn adds to the debt, potentially fueling further investor calls for higher rates, in a pattern known as a “doom loop.”

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How in the Actual Hell Can We Be Running Out of Space Rockets?

America’s la peur du jour — online tools assures me that’s French for “fear of the day” — isn’t the Iran War, AI stealing our jobs, or even Rep. Nancy Mace demands that we not ogle the sleeve tats she demands that we ogle.

If she doesn’t want us to stare at her tats, maybe she should switch back to scoop-neck tops? I dunno.

As it turns out, what bedevils our fine nation today is a satellite operations industry “in panic,” as Quality Space research chief Caleb Henry told Ars Technica over a looming rocket shortage.

It seems crazy. We live in the Golden Age of Rocketry.

SpaceX keeps humming along, setting one Falcon 9 record after another while also working even harder to make Falcon 9 obsolete.

Blue Origin’s reusable New Glenn rocket should get back to work early next year, and Northrop Grumman will eventually work out the kinks with the solid fuel boosters for ULA’s Vulcan rocket. I mean, you would certainly hope so. And then there are innovative launch solutions coming down soon from upstart rivals like Stoke Space, Rocket Lab, and Relativity Space. And those are just the up-and-coming American firms. 

Governments and private equity around the world continue dropping serious coin into innovative launch tech. 

Speaking of innovation, we can’t leave out SpaceX’s Starship, which will likely enter full service before the end of the year. If all goes to plan, as the program matures, each Starship launch will lift more than five times as much stuff to orbit as Falcon 9, while costing less per kilogram. A lot less.

So with all this going on, how could we possibly run out of launch capacity?

It’s all in the timing… and the pricing… and where the money really is.

And it ain’t in launch.

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