Tag: economy

Trump to American workers: Let them pay for the war

On the eve of the French Revolution, the ill-fated Queen Marie Antoinette is said to have responded to reports that the peasantry could not afford bread with the remark: “Let them eat cake.” The story is almost certainly apocryphal, but it captured the moment—the arrogance and cluelessness of an aristocracy that had lost all connection to the conditions of life of the masses, even as it presided over mounting social misery and the approach of revolution.

Donald Trump’s statement this week belongs in the same historical register. Asked whether he considered the impact of the US war against Iran on “Americans’ financial situations,” the bloated gangster-president replied, “Not even a little bit.”

There are moments where the reality of social relations is made clear, and Trump’s statement is one of them. He made his comments as he was leaving the White House to travel to Beijing for a summit with Chinese President Xi Jinping.

Trump tried to frame his remarks in the context of the danger of an Iranian nuclear weapon. “The only thing that matters when I’m talking about Iran—they can’t have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody,” he said.

The imminent danger of an Iranian atomic bomb has been the “big lie” peddled by the White House since the beginning of the war. The threat is universally dismissed by commentators with any knowledge of Iran, as well as by the US military-intelligence apparatus. There is no reason to believe that Trump believes this fairy tale either—especially given that he claimed that last summer’s airstrikes on Iranian nuclear facilities had “totally obliterated” them.

That leaves Trump’s declaration that he does not care about the impact of the Iran war on the cost of living for American working people to stand on its own. He said it, and he meant it. The American ruling class demands that the working class pay the cost of this war.

Trump’s claim that he doesn’t think about the financial position of any American is of course a lie. He thinks constantly about the financial position of the billionaire oligarchs, his sole constituency, the social layer which spawned him. This was on display as Air Force One landed in Beijing, carrying Trump and many top aides, as well as a Who’s Who of American capitalists—Elon Musk, Apple’s Tim Cook, Jensen Huang of Nvidia, Larry Fink of BlackRock, Stephen Schwarzman of Blackstone, Boeing CEO Robert Ortberg, Citigroup CEO Jane Fraser, and CEOs of Cargill, GE Aerospace, Goldman Sachs, Micron Technology, Qualcomm, Visa and others.

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India Panics, Further Tightens Gold Flows As Rupee Collapses

With the Rupee accelerating its declines to ever lower record lows against the dollar, Indian authorities have stepped up capital controls, focusing on curbing demand in the gold ‘exit’ route.

4 days ago, there were no signs of import duty hikes as Prime Minister Narendra Modi  issued a rare weekend appeal urging citizens to forgo gold purchases as well as unnecessary foreign travel in order to help hold up the currency..

2 days ago, tariffs were more than doubled on gold and silver imports to 15% and 6% respectively.

And today, they are doing even more with India now tightening the advance authorisation route, effectively capping how much gold individual exporters can bring in through that channel. 

A government notification stated that imports of bullion exceeding 100 kilograms would be subject to prior authorization, adding that any subsequent imports would only be granted after exports equivalent to 50% had been carried out.

The notification also introduced stricter checks for first-time applicants seeking permission to import gold under the scheme.

The government has also linked future import approvals to export performance.

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California farmers to destroy 420,000 peach trees after Del Monte collapses

Central California peach farmers are preparing to destroy around 420,000 clingstone peach trees afterDel Monte Foods shut down its canneries earlier this year.

Del Monte, the 139-year-old canned fruit and vegetable company, permanently closed its canneries in Modesto and Hughson in April following a Chapter 11 bankruptcy filing last July.

The closures left hundreds of workers without jobs and devastated growers, many of whom lost 20-year contracts with Del Monte and had few alternative buyers for their crops. Farmers could face an estimated $550 million in lost revenue, according to the Sacramento Bee.

In response, Senator Adam Schiff and Reps. Mike Thompson and David Valadao announced last week that affected growers could receive up to $9 million in federal aid to remove up to 420,000 clingstone peach trees before the upcoming harvest season, which typically runs from late May through September.

The approved emergency assistance will help growers remove about 3,000 acres of clingstone peach orchards. Removing about 50,000 tons of peaches from production could reduce oversupply and save farmers an estimated $30 million in additional losses, the officials said. The growers can then pivot to another crop.

“For generations, Central Valley family farms have relied on Del Monte’s Modesto facility to process their peaches,” Valadao said in a statement.

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Living Wage for All: A Prescription for Economic Ruin

Four Democratic House members, Jesús “Chuy” García (IL-04), Delia Ramirez (IL-03), Lateefah Simon (CA-12), and Analilia Mejia (NJ-11), introduced the Living Wage for All Act on April 28, proposing to raise the federal minimum wage to $25 an hour.

The bill is backed by Alexandria Ocasio-Cortez and a coalition of more than 100 organizations. Large employers would have until 2031 to comply, while smaller employers would have until 2038. After that, the minimum wage would adjust periodically to two-thirds of the national median wage, currently around $31 an hour.

The legislation is unlikely to pass with Republicans controlling both chambers of Congress. However, the economic damage caused by a forced multiplication of the minimum wage would be staggering.

The federal minimum wage has stood at $7.25 since 2009. According to the Bureau of Labor Statistics, roughly 82,000 workers currently earn at that floor, approximately 0.05% of the 170 million-person U.S. labor force, or about one worker in every two thousand. To raise wages for that population, every employer and consumer in the country would absorb the cost.

Proponents claim the bill would benefit millions more, pointing to BLS data showing 760,000 workers earn below the standard minimum wage. That figure is misleading. Those workers are tipped employees, legally paid $2.13 an hour under a separate federal provision on the assumption that tips make up the difference. This is a legal carve-out, not exploitation.

The Bureau of Labor Statistics Occupational Outlook Handbook reports the median hourly wage for waiters and waitresses, including tips, was $16.23 in May 2024, more than double the standard minimum wage. Tipped workers who found the arrangement unprofitable could leave for minimum-wage jobs, which are plentiful. The market already corrects for this. The actual universe of workers this bill targets is 82,000.

The cost impact on prices can be modeled mathematically under explicit assumptions: all affected workers currently earn $7.25 an hour, wages rise to $25 an hour, employers pass 100% of the increase to consumers, and no automation or headcount reductions occur. This produces a ceiling estimate, not a prediction.

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Mamdani Brags He Eliminated NYC’s $12 Billion Budget Deficit, But Then a New York Outlet Dug Into the Numbers

On Tuesday morning, New York City’s ultra-progressive mayor, Zohran Mamdani, took to X to take quite a boastful victory lap.

“When we came into office, we uncovered a $12 billion budget deficit,” Mamdani posted to X. “Today, I’m proud to say we brought it down to zero.”

“We didn’t close the gap on the backs of working people,” he continued. “We closed it while funding parks, libraries, safer streets and making historic investments in public housing. Call it Pothole Politics. Call it Democratic Socialism. It’s government that delivers for the people who make this city run.”

“That’s what New Yorkers deserve. And that’s what we will keep fighting for every single day.”

In a vacuum, this certainly sounded like it should’ve been a good Tuesday for NYC residents. But shortly after Mamdani’s post went up, the New York Post came out with a blistering rebuttal of Mamdani’s claims — and a much closer look at the numbers that Mamdani largely avoided delving into.

Blasted for including “a menu of hidden fee hikes” in his budget plan, the outlet pointed out that this deficit “fix” from Mamdani was anything but.

And notably, some of the harshest criticisms lobbied against Mamdani came from a fellow Democrat.

“Banking on yet to be determined revenue-raising gimmicks and identifying fake savings are not wins,” an unnamed Democratic operative told the New York outlet.

The operative savagely added, “This budget plan is as real as Kim Kardashian’s lips.”

So why is this budget plan so inauthentic?

Critics argue that the holes in Mamdani’s budget vision become glaringly obvious once you look beyond the lofty rhetoric and into the actual revenue proposals being floated by City Hall.

According to city budget documents cited by the New York Post, officials are eyeing a laundry list of new fees, fines, and enforcement crackdowns to help plug fiscal gaps.

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Democratic Socialism Works! Leftists Go Nutty for Mamdani After He ‘Balances’ the NYC Budget

Well, friends, if you support President Donald Trump and oppose the left, the game is up. He’s done it. Zohran Mamdani, New York City’s bright young communist mayor, has balanced the city’s budget without raising taxes or cutting a dime from social services. Leftists already loved him for being a Muslim, a migrant, and an America-hating Marxist, and now they love him all the more, for don’t you see, he has proven, in the teeth of racist, xenophobic, far-right opposition, that socialism works!

If you believe that, I have a very fine bridge that would make a lovely addition to your backyard, and it’s extremely reasonably priced. But over at Threads, Mark Zuckerberg’s leftist facsimile of Elon Musk’s X, they’re in full celebratory mode, and from the looks of things, the champagne is flowing freely. One leftist laid out the sober (alleged) facts: “They called him a communist. Said he’d destroy New York. 131 days in he balanced a $12 billion deficit without cutting a single service. This is what we’ve been asking for.” Another responded: “This is exactly what they were afraid of. He’s proving that it can be done and all their fear mongering is just bulls**t.”

Many leftists were sure that Mamdani had performed this particular trick by doing what patriots refuse to do: soaking the rich the way they deserved to be soaked. One wanted even more: “i’m sorry am i getting this right? NYC Mayor Mamdani taxed wealthy people on properties they own if they don’t live in them, it balanced the city’s multi-billion dollar budget immediately, and all the wealthy people are still wealthy? am i getting this right? they’re still wealthy, right? and no middle or lower financial earners saw any additional tax? am i getting this correct?” In a word, no, but don’t let me spoil the party.

The reality, as the New York Post explained Wednesday, is that New York City’s budget is “only ‘balanced’ with gimmicks that guarantee oceans more red ink in the years ahead. With a late assist from Gov. Kathy Hochul’s own flim-flammery, the new, $124.7 billion Mamdani spending plan relies on one-time cash infusions, postponed payments and dubious calculations of future tax windfalls and theoretical savings.”

Hochul helped out by giving the city $4 billion, so Mamdani’s balanced budget is indeed a triumph of socialism: the city is solvent not because it spends responsibility and within its means, but because it got a handout. As long as the handouts keep coming in and Mamdani can keep on spending other people’s money, everything will be fine.

A crash is coming, however. City Comptroller Mark Levine explained that Mamdani’s “balanced” budget “‘relies on $2.8 billion in one-time measures’ and short-term savings, without addressing ‘the fact that City government continues to spend more than we take in, even in a year of record revenues.’” One day the money is going to run out. Mamdani can hope that he will be out of office by then and can blame someone else. One Threads user tried to sound a note of caution amid all the celebrations: “I am a Mamdani supporter and proud leftist. Please understand that he did this by delaying funding pensions, which has historically been a disastrous way to kick the can down the road.”

But the can is kicked, and so for the time being, Mamdani can bask in the glory of an accomplishment that he didn’t really accomplish. Another Threads leftist rejoiced in this triumph of socialism: “Mamdani socialist a** is on these other politicians NECKS honey. Balanced the budget. Banned ICE. Created a snow shoveling workforce, handled two storms, filled thousands of potholes, extended free childcare, opened an office for deed theft, held numerous town halls for tenant rights. Got the city to engage civically in multiple initiatives. He’s even killing it on social. lol.”

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U.S. Treasury pays $3 billion a day in interest on national debt nearing $39 trillion mark

The U.S. Treasury has paid $628 billion in net interest this year to service its borrowing, according to the the Congressional Budget Office (CBO).

The latest monthly budget update on the national debt and its interest burden, shared on May 8, breaks down the government’s income and outgoings for the fiscal year so far, which began in October.

The CBO breakdown shows the deficit so far this year is actually smaller than it was for the same period a year prior. However, every day the Treasury is still forking out billions of dollars to manage existing service payments to lenders.

The report demonstrates the government’s largest outlays: $953 billion so far this year for Social Security benefits, $588 billion for Medicare, and $409 billion for Medicaid. Net interest on public debt is a larger figure than both Medicare and Medicaid, totaling $628 billion for the seven months between October and April.

On those numbers, for the 212 days since October, the Treasury’s interest payments have averaged at just shy of $3 billion a day—$2.96 billion to be precise.

The interest payment figure is rising with every budget update that passes, the CBO said: “Outlays for net interest on the public debt rose by $41 billion (or 7%) because the debt was larger than it was in the first seven months of fiscal year 2025 and because of higher long-term interest rates. Declines in short-term interest rates partially mitigated the overall rise in interest payments.”

The overall debt picture has marginally improved: The April update shows government income totaled $3.3 trillion for the fiscal year so far, up from $3.1 trillion for October to April of 2025. Outlays have also increased, from $4.2 trillion to $4.3 trillion, meaning the deficit for FY26 stands at $955 billion, which is $94 billion less than for the same period in FY25.

A significant driver in this change was the revenue generated by Trump’s tariff agenda, intended to rebalance trade deals with every nation on the planet.

While geopolitical fallout and a level of market volatility followed, the income generated by the policy was significant: A 220% uplift in duties revenue compared to the previous year. In FY25 (between October and April), customs duties totaled $59 billion, but for the same period this year, the government has raked in $190 billion.

It’s the reason Wharton Professor Joao Gomes previously argued that the initially unpopular tariffs are here to stay—even if the Democrats win the next election. “The truth is governments need revenues and once you see the amount of revenue the tariffs bring, I think Democrats will be addicted to them as Republicans—or are as likely to be,” he told Wharton Business Daily last year.

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Germans Are Feeling the Economy Collapse in Real-Time

Germany was once considered the industrial engine of Europe. Today, ordinary Germans are increasingly feeling their economic model breaking down in real time as living costs rise, industry weakens, and confidence in the future deteriorates rapidly. The political establishment still talks about “green transitions” and economic resilience, but households across Germany are experiencing something entirely different underneath the surface.

Recent polling from INSA found that nearly 70% of Germans believe the country is heading in the wrong economic direction, while consumer confidence remains near recessionary territory despite years of government stimulus and intervention. Another survey found that over 40% of Germans now say they cannot maintain their previous standard of living because of rising costs tied to food, housing, electricity, transportation, and heating. The middle class is being steadily eroded.

This is precisely what I warned would happen once Europe embraced energy self-destruction under the climate agenda. Germany built its industrial dominance around cheap and reliable energy combined with export manufacturing. Once Berlin shut nuclear plants, restricted domestic energy production, and sanctioned Russian energy flows simultaneously, the entire economic structure became vulnerable. Energy-intensive industries like chemicals, steel, manufacturing, and automotive production immediately faced soaring costs that competitors in Asia and the United States simply do not carry to the same degree.

German manufacturing activity has contracted repeatedly over the past two years while industrial production remains well below pre-crisis levels. Major firms including BASF have openly reduced European operations because operating costs inside Germany no longer make economic sense long term. Volkswagen, Siemens, and countless mid-sized industrial firms are all confronting weakening competitiveness as energy prices remain structurally elevated.

Meanwhile ordinary Germans are absorbing the impact through declining purchasing power. Food prices surged dramatically following the Ukraine war and broader inflation crisis. Housing costs continue rising in major cities. Electricity prices became some of the highest in the industrialized world. Insurance costs, transportation expenses, and debt servicing all moved sharply higher after interest rates normalized from the artificial zero-rate era.

The political class still pretends these are temporary disruptions. They are not temporary. Germany is facing structural decline because policymakers dismantled the foundations supporting industrial prosperity itself. You cannot run a major export economy while intentionally making energy scarce and expensive. The mathematics simply do not work.

This is why the ECM projected Europe entering a depressionary phase into 2028. The sovereign debt crisis was never truly solved after the euro crisis years. Europe merely delayed the reckoning through ECB intervention, money printing, and artificial liquidity. Now the continent faces a second wave of pressure simultaneously involving war spending, migration costs, demographic decline, energy instability, and collapsing competitiveness.

Germany sits at the center of that crisis.

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Sec. Burgum on Economy-Crushing Bureaucratic Creep: ‘80% of What People Were Being Held Accountable for’ Not Original Law

Interior Secretary Doug Burgum argued while speaking at a Breitbart News policy event that the vast majority of the legal hoops the American energy industry has to jump through are setting the U.S. back, while China skips over bureaucracy in the race for AI dominance.

Burgum, the chairman of President Donald Trump’s National Energy Dominance Council, told Breitbart News Washington Bureau Chief Matthew Boyle that the “Silicon Valley Titans” who do not necessarily see eye-to-eye with Trump understand the issue, which is why they largely supported his 2024 campaign. 

“In November ’24, who was standing on stage at the inauguration? Tim Cook, Elon Musk, [and] Mark Zuckerberg,” the secretary said. “I mean, you know, Silicon Valley Titans were all standing there within 20 feet of the president. Think, why?”

“Because,” Burgum said, “They all got behind electing a president that understood that we needed more energy, and that we could not win the AI arms race without more electricity, and that the policies that the competition was offering was going to end up with energy subtraction.”

In its own words, the Chinese Communist Party (CCP) has stated that their AI theories, technologies, and applications should “achieve world-leading levels” and make China “the world’s primary AI innovation center” by 2030. 

As Breitbart News’s Wynton Hall noted in his latest book, Code Red, “Nearly half of the world’s top AI researchers are Chinese,” and the country produces “nearly twice as many AI-relevant PhDs as the United States does.”

Burgum stated that Trump’s mission to beat China in the AI race is what caused a “giant shift” to occur, with major technology companies throwing their support behind the president in order to achieve this goal. 

“It was important that it was happening because if we were going down a path, which was continuing to do energy subtraction, we have no chance,” the Interior secretary argued. “Now, we have a chance.”

According to Burgum, the Chinese “are not spending years caught up in court, in litigation over a bunch of, say, bureaucratic rules — not even laws.”

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Time To End the Fed and Its Mismanagement of Our Economy

Every major economic downturn of the last 110 years bears the mark of the Federal Reserve. In fact, as long as the Fed has been around, it has swung the economy between inflation and recession. Yet Americans, surprisingly, have tolerated it.

But we shouldn’t expect that to go on forever. We had three central banks before the Fed and confined each to the ash heap of history. The problems inherent to central banking are cause to scrap the Fed as well.

Central banking dates to 1694, when the Bank of England was founded for the purpose of creating the hidden tax of inflation to provide cheap money to government—above all, for Britain’s many foreign wars. In exchange, the central bankers were paid well with interest.

Like any government-favored bank, the Bank of England lent money it didn’t have, lending far more than the silver in its vaults. The British government endorsed this fraud because the king and Parliament wanted the money. 

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