Government shutdown…Economic data has been limited. Yet, a few people at the Labor Department were called back to work to calculate COLA for Social Security.

What does it mean – If you are currently on or going to collect Social Security, you represent a massive voting bloc, and the government will make sure your Cost-of-Living Adjustments come in on time and are calculated prior to the deadline.

Due to the demand by the Social Security Administration, a small part of the federal government took a short break from being shut down to make sure the Labor Department could deliver the September Consumer Price Index (CPI). Why? Because the Social Security Administration needs this inflation report to calculate and announce the Cost-of-Living-Adjustments (COLAs) for Social Security beneficiaries for 2026. Magically, the demand for this number temporarily transformed some government statisticians into “essential” workers from “non-essential” workers.

The key takeaway from the report is that CPI and Core CPI were both cooler than expected, which will keep the market thinking that the FOMC will announce a 25-basis point rate cut and should not upset “expectations” for another cut in December.

Fed lowers rates…The Federal Reserve cut its benchmark interest rate a quarter of a percentage point on Wednesday.

What does it mean – Even with record revenue from tariffs inflation seems to be in check.

Global Debt…With $38 Trillion in debt tough decisions will be made by choice or by force.

What does it mean – A government big enough to give it to you is certainly big enough to take it away. Lowering interest rates will also slow down or lower the trajectory.

Over the last few weeks, we have been experiencing a lack of data to report on due to the government shutdown. The great news is it may be saving taxpayers $billions and slowing our march to $40 trillion in debt. DC may finally be realizing just how bloated the Federal government is while the private sector continues to move forward building and creating wealth to fund the insatiable appetite of a bloated bureaucracy.

“Big Government Sucks.”… It is not just a saying, it is the truth. And that sucking sound you hear is coming from your bank account and your children’s future.

What does it mean – With reality front and center, we unfortunately continue to have folks who think more government is the cure to their problems. New York City is about to double down on another hit of government heroin. This will lead to more government control, more taxes, and more depression and pain.

One must ask, where on this planet has Socialism and Marxism ever increased productivity, life expectancy, freedom of speech, economic freedom, and promoted and protected religious freedom?

Answer – Nowhere, nonexistent, nada, not even in Karl Marxs Russian utopia. It is theoretical at best and even a bunch of farm animals figured it out. Yet somehow every major city run by people who bring the very policies that are the antithesis to economic freedom, liberty, and the pursuit of one’s happiness is doubling down on stupidity. Just look at Portland, LA, SF, Seattle, Chicago, NY, Houston, New Orleans, and Memphis. These major cities with the same causes are resulting in the same self-destructive behavior fueled by greed and envy are akin to George Orwells Animal Farm.

The good news is our border is now secure and will continue to be protected. Our service men and woman will get paid due to the generosity of Timmothy Mellon who will cover the salaries of our servicemen and women during the shutdown. And don’t worry, your elected officials made sure that their inability to create anything will never affect their salaries and the people that support their addiction to your money will always be paid regardless of their inability to produce a product that will actually protect our sovereignty, our inalienable rights, and reduce the size of government so that free men can prosper under the messy yet very efficient “invisible hand.”

In Adam Smith’s book, “The Wealth of Nations”, he writes about the “invisible hand.” This is a metaphor for how individuals acting in their own self-interest can lead to a beneficial outcome for society as a whole. By pursuing their own goals, society benefits by the dynamics of supply and demand, and markets naturally adjust prices and trade flows without centralized control.

Adam Smith describes how personal motives can lead to broader economic benefits and fulfillment of society’s needs. That in a free-market system, which created the wealth and freedom we have today, is the impetus and mechanism that stimulates and promotes the pursuit of profit by producers and the desire for goods by consumers. Driven by supply and demand, the results are clear and have led to generations of proven efficiencies and allocation of resources that have produced the goods and services that built the greatest country in the world without the need for central government planning.

Further proof that a planned economy fails – $14 trillion pledge in 2022 to reduce and hopefully eliminate carbon fuels is just a hoax according to the science and current water levels at Plymouth Rock.

What does it mean – It took Bill Gates to say it, so it must be true. Government forced clean energy initiatives have not worked and will not stop the climate from changing. Plymouth Rock is at the same sea level as it was when our forefathers stepped foot on this land in 1620. I guess the past presidential and congressional climate Czars will not have to worry about their beach houses.

Could Bill Gates change of heart or newfound truth be the fact he needs cheap efficient energy to power his AI investments and server farms. He is buying nuclear and gas/oil to create the energy needed to build, supply and maintain the digital landscape Microsoft seeks to control.

Our government is not our opportunity, but our protector of freedom. Fortunately, free markets and capitalism have offset the insatiable demand for power and control by government officials and elected and unelected bureaucrats.

Invest in yourself. Solve a problem. “Whatever the mind of man can conceive and believe it can achieve.” From Think and Grow Rich by Napoleon Hill.

Let’s roll America!!

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

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