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John T. Reed’s news blog

They’re rioting in Lebanon, because their foreign currency is illegal in Lebanon’s hyperinflation

Posted by John T. Reed on

Interesting situation in Lebanon: they are currently going through a economic crisis that involves hyperinflation. Though they have pegged their currency to the dollar and many citizens held their bank accounts in dollars, the banks forced them to withdraw their deposits in Lebanese Pounds at of course, non-market exchange rates. Demonstrators defy coronavirus lockdown and set fire to banks amid mounting currency crisis and joblessness About this website FT.COM Lebanese riots over economy and soaring poverty leave one dead and dozens hurt Demonstrators defy coronavirus lockdown and set fire to banks amid mounting currency crisis and joblessness Demonstrators defy coronavirus...

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Will ‘Trump get us out of this?’ WE may get us out of this, but government will not.

Posted by John T. Reed on

A Facebook reader posted this comment:.Only real solution is to recognize the Wuhan virus as no more deadly than its sister the flu and reopen the country... President Trump listened to the deep state Dr Fauci science not realizing he was deep state... now he will get us out of this... just like he got us out of the Obama economy.John T. Reed repsonse: Trump worsened international trade stats compared to Obama. Trump improved the tax code and reduced regulation, both of which helped the economy although the diminution in international trade cancelled some of it out..All of your phraseology is too...

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Where to put money with a hyperinflation Sword of Damocles hanging over the US

Posted by John T. Reed on

This is my answer to a facebook reader question:. My Schwab money is not insured by FDIC because it is in a Schwab index fund and a Schwab REIT index fund. FDIC insures against loss of the deposit, not the deposit’s purchasing power disappearing. In hyperinflation, $250,000 will buy you a candy bar. . In hyperinflation, dollar-denominated assets like savings accounts become worthless—guaranteed by definition. In that event, FDIC is irrelevant. The Schwab index fund is not guaranteed to do better than zero by contract, but stock market history in hyperinflated countries was that stock markets in those countries went...

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The world economy does not respond to commands from the Oval Office or governors’ mansions

Posted by John T. Reed on

The government thought it was in control of the economy. They could turn it off. And they could turn it back on..Nope. the economy is not in the control of the government. It is controlled by consumers world wide, business world wide, governments world wide. Furthermore, politicians and American laymen seem to think all businesses are very powerful and have profit margins in the 60% range..Supermarkets used to have 1% profit margins, that was why they refused to take credit cards then. Many other businesses have single-digit profit margins..Politicians and laymen also think the small businesses and many of the...

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Trump is responding to covid 19 with full-on socialism and has turned America into a nation of welfare queens on the the theory that “if it’s not your fault, the federal government will pay for it’

Posted by John T. Reed on

Tenants are not paying their rent today. Landlords are asking for the federal government to pay them. Trump has said, “If it’s not your fault, the federal government will pay.” Job loss is not the tenants fault so they are entitled to steal free residency from their landlord. It is not the landlord’s fault either so they are entitled to demand the rent be paid by the federal government. Overnight, with that “it’s not your fault” logic, Donald Trump has turned into not Bernie Sanders but AOC. Overnight, he has turned millions of Republican voters into full on socialists. And...

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