Financial, Economic and Social Mood Update (November 1, 2020)
Financial, Economic and Social Mood Update (November 1, 2020) Real US GDP has now fallen as low as USD $5 TRILLION per year according to economist Larry Summers (75 percent less than before the pandemic began). The Federal Government budget eats up all of this – sad proof that none of the real US economy still survives. Annual deficit spending has reached USD $4.235 TRILLION, which equals an actual annual inflation rate of 85 percent………….the loss in purchasing power of the US Dollar (the 44th highest rate of annual currency inflation in world history). 75 percent of the American population will experience a drop in nominal income (thus an even bigger drop in real income) this month due to the expiration of stimulus, relief and other welfare programs. Once again – “printing” or creating more worthless currency is never a good long term policy. No economy will ever recover unless its people return to work, and no economy will ever create new jobs unless small “mom and pop” businesses survive and thrive. Government (public sector), nonprofit organizations and large companies have never created net new jobs in any economy in the history of the world. The report of a “record” 33 percent increase in US GDP in the 3rd quarter of 2020 (which would take the USA “back” to USD $6.65 TRILLION) is meaningless in that this is still within the realm of the federal government creating yet more money out of thin air………………..this is federal government “pumping” in the form of government contracts and “grants” to state and local governments across the USA. PayPal (spun off from E-Bay) will allow its vendors and customers to buy, sell, store and pay in major cryptocurrencies before the end of 2020 – specifically with Bitcoin, Etherium, Bitcoin Cash and Litecoin. PayPal has…