What Happened Last Week and What It Means to You: May 27th, 2022
Week Ending May 27th, 2022
New Zealand hands out money to fight inflation…
Did the leaders of New Zealand ever wonder what caused inflation?
What does it mean – When career politicians and government bureacrats who so desperately want to keep power and yet have never run anything in their life but their mouths are in control of the treasury’s printing press, you can expect greater government spending, the urge to print more money, and more government programs all resulting in higher inflation and more expensive government.
Gas prices soar…
National average hits $4.62 per gallon and over $6 per gallon in California for the first time in its history. That is up $.44 per gallon over the last month and up over 50% over the last year, well before the Russian invasion of Ukraine.
What does it mean – According to AAA, 18 states are already over $5.00 per gallon and many more on the rise. Expect transportation costs to continue climb. This administration is set on devaluing and diminishing your income through higher gas prices which will translate into higher food and neceisities. Totally fixable.
Biden has no intention to relieve oil production…
On Monday President Biden doubled down on his decision to freeze new federal oil and gas drilling leases to tackle climate change.
What does it mean – Fuel prices are going higher and just wait until global demand spikes once China fully re-opens. Yet President Biden himself said that “when it comes to the gas prices, we’re going through an incredible transition” callously praising high fuel prices.
Our President and this administration are very happy to continue to shut down production, freeze leases, drilling permits, and any new pipelines here in America while begging OPEC and our enemies to drill more. Meanwhile, nations like Russian and Venezuela, and enemies of the free world enrich themselves in the process. This is a global wealth transfer that is funding the very people who hate our freedom, not to mention do so with far less environmental regulation and thus turning the climate change argument on its head. You should demand your congressman and senator to vote to end this immediately.
Some good news…
The U.S. $ is on par with the Euro and is also strong against the Yuan.
What does it mean – Good news for the consumer. This will make imports a bit cheaper. Not so good for domestic production.
Fed Banks of Richmond, Philly and NY…
In May all three fed banks showed major decline in factory output activity.
What does it mean – New orders and shipments all are down significantly from the prior month.
New home sales drop 16.6% in April…
Housing is key to economic growth.
What does it mean – Expect the housing market to continue to slow and prices to start coming down as interest rates go up, and all that “free” money continues to create inflation.
Nationwide home listings increased by 9%…
More people are rushing to sell in order to beat a downturn in the housing market.
What does it mean – Sales under contract declined by 3.9% last month and down over 9% from a year ago. This is the slowest we have seen it in over a decade (remember 2009-2011). We are now seeing more sellers in certain parts of the country as they flee poorly run states for vibrant growing states. HMMMMM?
Department of Labor releases data highlighting every states employment numbers…
Not so good for States that favored the shutdown of schools, businesses, and increased government spending.
What does it mean – The numbers are glaring. 100% of states run by Govenors and legislatures that protected individual liberty, limited government, and left decision-making to individuals and private business have more than recovered. Meanwhile all other states run by “big government” beuracrats and Govenors that favor more control and less personal liberty are only back to 87% of pre-pandemic numbers. You can guess which states are run by wich types of governments.
States like FL, TN, AZ, UT, KS, SD, TX and others prospered and are now far ahead of where they where before the pandemic. Ask yourself, not where you want to live, but under what type of leadership and do you want for your state?
Inflation is not going away anytime soon…
Inflation rose 9.57% since April.
What does it mean – You must be getting tired of hearing it from me. But here goes – Policy matters!! Until we change the policy, we will continue down this path.
Predictor-in-Chief Ronald Reagan was not just right but may be the best fortune teller of all time. Just read a few of his predicitons. Trully amazing. Reagan knew that too much government spending and printing of money leads to too much money chasing to few goods. Maufacturers and businesses will not produce more if they are dependent on the government for the supply of buyers. This is why a command-and-control economy like Russia, China, Cuba, and every other marxist country continues to fail over and over again.
Here is Reagan on Johny Carson. It is worth the watch and it is almost as if he is speaking about todays issues. https://www.youtube.com/watch?v=KBB78P4aids
Lets roll America,
Doug De Groote, CFP®, MBA, CTC