Posted July 27, 2022
By Matt Insley
Read My Lips: No Recession
Regarding our “Pelosi Portfolio” update on Monday, a reader writes: “This is the same crap that has been going on for years. All you have to do is look at the number of U.S. Representatives and Senators who have become millionaires after being elected to know what has been going on.
“The best way to fix this is to pass a law incorporating the rules that the Federal Reserve recently put into place as a result of their scandals. This law should apply to all elected and appointed officials, their spouses and family members. Under this law, existing investments could be sold, but new investments would have to conform to the new restrictions (essentially mutual funds if I understand the Fed rules correctly). In addition, we should tighten the conflict of interest rules regarding any businesses that these people own or participate in, like law firms.
“Finally, we should eliminate pensions for all current and ex-elected and appointed officials. These people are not employees of the Federal government, and have numerous opportunities to earn a living after they leave office without relying on taxpayers to support them.
“I think the founding fathers believed that serving in government was a public service, not a get-rich-quick scheme.”
To our reader’s point, Congress continues to shelve the bill — Ban Congressional Stock Trading Act — meant to curb Congress members from capitalizing on insider stock-market information.
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Your Rundown for Wednesday, July 27, 2022...
Recession Spin Cycle
“Senior administration officials are hitting the airwaves and arm-twisting reporters in private, imploring anyone who will listen that the economy — despised by majorities of both Republicans and Democrats fed up with inflation — is still healthy,” says an article at Politico.
(I mean, when a left-leaning media outlet like Politico calls out Team Biden, the White House’s spin cycle couldn’t be any more blatant.)
At issue? A White House statement which said: “What is a recession?” And proceeded to discount the commonly held definition.
In reality, an economic recession is considered after two (or more) sequential quarters of falling gross domestic product (GDP). But not according to the Biden administration and some of its media apparatus…
“White House press staff are also regularly convening background briefings with economics reporters and senior administration officials to talk up the economy’s strengths,” says Politico, “no matter what the GDP numbers say this week.”
Yes, Team Biden is playing defense ahead of Thursday’s hotly-anticipated GDP number.
A quick reminder from our macroeconomics authority Jim Rickards: “Actual GDP for the first quarter 2022, was negative 1.5%.
“It takes only the smallest rounding error, to push the second quarter into negative territory,” Jim says. “In other words, we may be in a recession already.”
Jim Rickards warned of the 2008 financial crisis. In 2006. Today, he explains the REAL reason why a massive financial panic might be just around the corner.
How to prepare? Jim’s got you covered in this FREE rebroadcast of a message he recorded on Sunday.
Market Rundown for Wednesday, July 27, 2022
S&P 500 futures are up almost 1% to 3,955.
Oil is up 1.2% to $96.11 for a barrel of WTI.
The price of gold is churning at $1,717.20 per ounce.
And Bitcoin is in the green at the time of writing: up 2.2% to $21,350.
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You all take care, and we’ll be back again tomorrow with your quick hit of morning financial news.
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