Kerry Lutz's--Financial Survival Network

Summary:
Today, Mish walks us through some of the effects of the lockdowns and the variant on the economy. We talk about stimulus checks, and some of the negative impacts on businesses and the economy in turn—everything is down in the real economy at the moment. Mish also highlights the significance of inflation: the disruption in the supply chain is real and it’s affecting everything. We talk about some of the indicators of these phenomena, and other interesting insights that allow us to better understand the current obstacles in the market.

Highlights:
-Mish talks to us about what is happening with DOW and Nasdaq, and how the fed will do whatever it takes to ensure that the economy will not falter—which translates to buying stocks.
-Is the Delta variant going to bring down the stock market and economy?
-There could be more pressure in terms of proving that you’re vaccinated
-The market is dismissing the Delta variant because it is concerned with the fed
-In the real economy, everything is down, but the stimulus should bring it up
-With the iminent end of stimmies, will we see a rebound in hiring?
-Investing is something that people have become involved in during COVID in light of receiving stimulus
-September and October are dangerous months for the stock market
-Big banks want employees back; tech companies are okay with remote working
-People are still hiring with many incentives, and the labor shortage is still very much as play—especially in hospitality
-Inflation is still at play as well—the disruption in the supply chain is real and it’s affecting everything
-Mish uses sugar as a barometer for inflation—it is a lead indicator
-Inflation is something that people should not forget about, and the impact on the market could be more significant than anything
-Mish says Bitcoin and Ethereum are the grandma and grandpa of crypto, but that the whole space is going to continue to be exciting
-We have had seven crashes in Bitcoin, and we don’t know if this one is over or not

Useful Links:
Financial Survival Network
Mish Schneider on Twitter
MarketGuage

Summary:
Michael Busler, Professor of Finance at Stockton University, gives us a crash course on the current economic situation in the United States—probing into some of the root causes of different problems and changes we are seeing today. We dive into inflation that has worsened due to disruptions in the supply chain as well as health circumstances over the last year and a half. Michael explains, however, that there are a number of other causes for inflation. If the government returns to some of the basic principles our nation was founded upon, perhaps we can re-create the economic prosperity we were historically known for.

Highlights:
-On the good side, the economy is growing very well, and is somewhat dependent upon the virus
-The problem at hand is inflation - prices are up about 5% over the span of a year
-Inflation is caused by disruptions in the supply chain
-Business has not caught up with the supply yet and this is why prices are rising
-Some say as soon as things open up fully, supply will increase and inflation will diminish
-There are, however, other causes for inflation such as fossil fuels
-The federal reserve has increased the money supply by over 20% in the last year and they are keeping interest rates near zero
-The federal government spent $3 trillion more than they took in as revenue last year as well as this year (government deficit spending)
-Companies that are re-opening are trying to get workers to come back, but many of them are making more on unemployment. Thus, businesses are pushed to raise wages which drives up labor costs astronomically
-Wages going up pushes prices up
-Will the federal reserve be able to raise its interest rates?
-The stock market is doing so well because corporate profits are up due to remote working
-Companies need capital so that business can expand and we avoid stagflation
-We don’t want attempts to reduce inflation to bring about a recession
-If we go back to some of the basic principles of the United States, our economy could prosper like it once did
-Four basic principles: individual freedom, individual responsibility, low rates of taxation, limited role for government
-The current administration is contradicting these principles; the government wants to take care of everyone and encourage social responsibility. The government is not motivated by profit, so costs go up

Useful Links:
Financial Survival Network
Michael Busler Twitter
Funding Democracy, the economics of freedom