De Groote Financial Group November 2, 2021 No Comments

In-N-Out Burger closes all of its Contra Costa County indoor dining rooms over local vaccine mandates… In-N-Out refuses to become vaccination police. Government officials force teenagers working at In-N-Out to check customers’ vaccine status. This ridiculous overreach by government is on its way to Los Angeles and probably to most cities in California.

What does it mean – Your government is infringing on your rights as property owners, business owners, and patrons. Basically, the government just said, “you are not capable of making wise decisions for your health and wellbeing.” Not to mention the government is pitting one part of society against the other. This is bad for our country, bad for business, and bad for your investments.

James Madison famously said, “Government is the institution to protect property. This being the end of government, that alone is a just government which impartially secures to every man whatever is his own. It is not a just government, nor is property secure under it, where arbitrary restrictions deny to part of its citizens that free use of their faculties or where the property which a man has in his personal safety and personal liberty is violated by arbitrary seizures of one class of citizens for the service of the rest.”

Inflation is not so transitory… High inflation is here to stay, according to the Atlantic Federal Reserve President Raphael Bostic.

What does it mean – Fed Chairman Jerome Powell is now also on record for admitting that inflation is likely going to be around for some time. Expect higher prices and more supply chain delays as the government continues to spend on social programs and refuses to deal with supply chain issues at the ports and letting free enterprise solve a government-caused problem.

At the same time, Treasury Secretary Yellen says, “spending bill would be anti-inflationary.” All while following the administration’s script to raise taxes.

Supply Chain Chaos… Government regulations and lack of focus by this administration have led to a disaster at the ports, rail yards, and trucking industry that is focused on moving cargo from the ports to the rail yards and beyond.

What does it mean – Lack of focus by this administration and government officials on the issues that private enterprise can easily solve if the government removes the regulations. It is no secret that regulations on truckers have caused a massive bottleneck at the ports. Short-haul drivers are limited on hours, trucks are limited on emissions and how much they can carry, and Port unions are standing in the way of drives.

We are beyond the turf wars between unions, government, and people willing to work. It is time for deregulation and to let the private sector solve the government’s man-made disaster. It is hurting you, the consumer, and us as a country. It is stealing the very wealth you created and saved through massive inflation. The longer this persists, the worse it will be for jobs, consumers, inflation, and your investments. Remember the 70’s?

Oil and gas are energy… Ahead of UN Climate Change Conference, President Biden Begs Russia to pump more oil.

What does it mean – Due to executive orders, we are now dependent on Russia and the middle east to supply our energy needs.

Expect gas prices to continue to increase if we do not re-open American oil and gas fields. Another example of a government-made problem leading to more pain on main street.

Money supply… The Treasury and the Federal Reserve continue to work hand in hand printing our way into more debt. The Treasury has increased money supply by over 30% this year alone.

What does it mean – While not trying to over simplify this, but it is simple.

If I have 10 apples and you have $10 dollars, and you want to buy my 10 apples, it will cost you $1 per apple or $10 for all 10 apples.

If the Treasury increases money supply by 30% and you now have $13 dollars and I still only have 10 apples because I could not get more seed due to the supply chain, and you wanted to buy my 10 apples, it will now cost you $1.30 per apple or $13 dollars for all 10 apples. The increase in money supply is inflationary, and my apples just went up in value by 30%.

Always at your service,

Doug De Groote, CFP®, MBA, CTC Managing Director

De Groote Financial Group, LLC is a federally registered investment adviser that maintains a principal office in the State of California. The information contained in this message is confidential, protected from disclosure and may be legally privileged. If the reader of this message is not the intended recipient or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any disclosure, distribution, copying, or any action taken or action omitted in reliance on it, is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by replying to this message and destroy the material in its entirety, whether in electronic or hard copy format.
Disclaimer: This article is solely for informational and educational purposes only and contains information that is not appropriate for everyone. Nothing herein should be construed as the provision of personalized investment advice. This article does not provide legal, tax or accounting advice. Before making decisions with legal, tax or accounting ramifications, please consult the appropriate professionals for advice that is specific to your situation. Your experience may vary according to your individual circumstances and there is no guarantee that the views and opinions expressed herein will come to pass. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. This article should not be regarded as complete analysis of the subjects discussed.

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