4 Comments

Congratulations, Peter, on being proven right yet again! Your regular readers are not surprised, but we are continually IMPRESSED. I have thought many times, boy, I should have to be paying big money to get economic analysis this good, (And yes, that’s a nudge, nudge to anyone thinking of upgrading to paid subscriber!)

Think how angry this inflation is going to make voters. They have been repeatedly assured that everything’s coming up roses in the Biden Fairyland, but no, it’s more aggravating financial hardship - grrr! Ka-Ching for Trump and Kennedy!

Another topic that you have been correct about, Peter is the ongoing decline of China’s economy. Have you seen the numbers in this:

https://www.theepochtimes.com/china/chinas-economy-is-showing-5-signs-of-major-monetary-shortfalls-experts-5622362?utm_source=ref_share&utm_campaign=copy

China’s M2 has risen from $1.8 trillion at the end of 2000, to $41.5 trillion at the end of Feb, 2024. It’s now 2.3 times it’s GDP, as compared to the M2 of the US being 0.76 times our GDP. You called it, Peter - China is in deep trouble!

So, I’m still left speculating on how China’s problems will affect our own economy. They will probably try to dump more goods on us, which is likely to lead to higher tariffs. But any evolving thoughts on deflation contagion and so on?

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I read that very telling article a couple days ago.

(I really like the wide variety of news/opinions in The Epoch times!)

This one with regional and local viewpoints is also very telling:

Chinese State-Owned Enterprises Withholding Salaries, Asking for Bonuses to be Returned, Worker Says

https://link.theepochtimes.com/mkt_app/china/chinse-state-owned-enterprises-withholding-salaries-asking-for-bonuses-to-be-returned-worker-says-5625013?utm_campaign=app-cc&utm_source=ref_share&utm_medium=app&c=share_gift&pid=iOS_app_share

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Yes, thanks! I read that one as well - China is starting to fall off a cliff! And, as Peter has shown us, there is little they can do about it.

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If this rate of inflation keeps up, the Cost of Living Adjustment for Federal fixed incomes will have to be generous for the beneficiaries to be able to deal with the consequences. Unfortunately given the government tendency to cheat actual Americans to benefit the various entities infiltrating the US, I have a feeling that the government is going to attempt to defer the adjustment somehow.

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