My Monthly Economic Report Emailed to 50 Folks - Family and Friends ,..
Howdy All!!!
Been awhile ... I had my left hand operated on and typing 55 wpm was not possible ... There have been a lot of developments ...
Last August, the U.S. Supreme Court ruled for a second time on the moratorium for paying Rents / Mortgages ... And then folks had to resume payments for their housing ... Apparently it was not in the Pervue of the CDC
Lately, the U.S Supreme Court ruled that the Biden plan on forgiving Student loans was unconstitutional, so folks will resume paying them in Sept ...
In both cases, the executive branch of the federal government exceeded their legal limits. It all starts in the U.S. Congress to pass these laws as they constitutionally hold the purse strings ... Of course, they did nothing ...
Now ... Vehicle Repos are going through the roof, as people cannot afford to pay them ... For example ... Electric Rates have gone up from 35 to 60% in the last 18 months ... The average rent for a two bedroom apartment has increased 200+ dollars on the average.
The Federal Inflation rate is around 5.5% while, based on the 1980 Formula it is approaching 18% ... Look at shadowstats.com ... They have the real numbers.
What we have seen in the current banking crisis is just the tip of the Iceberg ... For those huge regional banks, people lost their money, and have to wait for the FDIC to send them the money they were insured for ... That is more money taken out of the banking system ...
Commercial Real Estate is tanking, and a number of these regional banks are exposed. They mark their bonds to maturity ... Unfortunately, around 300 Billion dollars have been pulled out of these banks within the last 9 months ... Meaning they have to sell the same securities for about half the value ... Remember that the Fed Funds Rate has increased from around 0 to 5 percent in the last 18 months. That makes the Prime rate 8 percent instead of 3% ... And it gets worse ... Anyone with variable rate interest loans are paying at least 8.5% versus 3.5% 18 months ago, which is pulling much more money out of the household income.
There is now over 17 Trillion of Household Debt ... 1.05 Trillion is Credit cards ... 3.1 Trillion is Student Loans ... 3.5 Trillion are vehicle loans ... and most of the rest are Housing / Home Equity Loans ... While just Food inflation is up 78% in the last two years, and 62% of families are now living Paycheck to Paycheck.
For ourselves ... Our Home Equity loan will be paid off October 1st, Paula's car paid off in 18 months Dec 1st, and My Truck paid off March first in 10 months ... We will have no debt, and last year we invested 85,000 dollars in updating everything in the house plus a lot of other improvements prior to the high inflation ... And the Inflation and Shortages will get worse towards the end of the year.
First time unemployment claims are pushing 250,000 a week, or 1 million per month ... And it will get worse ... Banking liquidity is drying up ... Small businesses and the rest of us small folks will not be able to get credit in a few months.
Please plan accordingly ... All these numbers are real, and available on various govt websites ...
Pay off Debt, and put your savings in Tangible Items.
