De Groote Financial Group December 14, 2021 No Comments

Week Ending December 10th, 2021

James Madison warned us… “If Congress can employ money indefinitely to the general welfare, and are the sole and supreme judges of the general welfare, they may take the care of religion into their own hands; they may appoint teachers in every state, county, and parish, and pay them out of their public treasury; they may take into their own hands the education of children, establishing in like manner schools throughout the Union; they may assume the provision for the poor; they may undertake the regulation of all roads other than post-roads; in short, everything, from the highest object of state legislation down to the most minute object of police, would be thrown under the power of Congress; for every object I have mentioned would admit of the application of money, and might be called, if Congress pleased, provisions for the general welfare.”

What does it mean – The money supply has increased by over 30% this year alone due to massive printing at the Treasury. Big banks are flush with your liquidity. Yet, the heartbeat of the American Dream struggles as small businesses fight more bureaucracy and government regulation.

Consumer prices soar 6.8%…Worst inflation in 40 years.

What does it mean – History repeats itself. The failed economic policies of the ’70s are back. Policy matters. Like a broken record, I mean podcast stuck on repeat, we have been sounding the alarm.

Inflation… Milton Friedman said it best, “Inflation is just like alcoholism. The good effects come first.”

What does it meanIt will take the average working person 42 Weeks to purchase a new light vehicle. It already takes the average taxpayer in America over 4 months just to pay your taxes. If Build Back Better becomes law, you will have far less to spend. Expect purchasing a new car to take far longer and you will be working much longer to pay your share of the budget that Congress and our President want to pass.

Transitory… A word used by the Fed to describe the idea that inflation will go back to normal and will only be with us for a short period of time.

What does it mean – Fed Chairman Powell, what can you say that you have not already said so clearly? Like so many in DC, they would much rather you believe what they say, than what you see with your own “lying eyes.” Fed Chairman Powell has requested that the word “transitory” be retired from describing inflation. That the Fed, “should try to explain more clearly what they mean when talking about inflation.” HMMM. I think we all know what it means. The good news is that Powell and the Fed have done a much better job of providing transparency. And I am thankful.

Consumer Credit… The American Consumer owes $4.361 trillion.

What does it mean – The American consumer is taking the advice of DC and pretending that their credit card has no limit. The difference is that the government can force you to pay more taxes to pay for their addiction to spending your money. Consumer credit increased by 4.6% and revolving credit increased by 7.8%.

New home permits… All regions showed an increase in new home permits except in the western region.

What does it mean – The population in CA continues to shift towards low taxed and well-managed cities and states.

U.S. Productivity… Down 5.2% according to the Bureau of Labor Statistics.

What does it mean – Could have to do with the fact that more people today prefer to work from home? According to Bank of America Global Research, 88% of Americans now prefer to work from home compared to 61% a year ago and less than 32% prior to COVID.

People are social animals, and few perform well on their own. Not to mention we need and thrive on human interaction. What happened to the old saying, “A hug a day keeps the Doctor away.”? Okay, it was an apple, and here is some real science about hugs.

According to a study in 2014 by Carnegie Mellon University, researchers found that greater social support and more frequent hugs protected people from increased susceptibility to infection associated with being stressed and resulted in less severe illness symptoms.

4 Reasons Why Hugs Are Good for You

by Jennifer Diffley from Select Health

  1. Hugs ward off illness – I have never seen a mom or dad stop hugging a sick child?
  2. Hugs release oxytocin – Also known as the love hormone.
  3. Hugs cut down on stress – A hug lowers the stress hormone cortisol according to Matt Hertenstein a research psychologist at DePauw University in Indiana.
  4. Hugs make you feel like everything will be okay – We instinctively hug those who are struggling. If anyone knows President Biden or any other elected official wanting to shut down our country, let them know I am available for a hug. We got this.

Hugs all around,

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 a complete analysis of the subjects discussed.

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