3am Today

Economy seems to be a recurring theme in my writings lately, but then with the actions of the US President, how could it not be.

Day-After-Day, more and more pressure has been put on the US citizen to produce money for an out of control, over bloated government that continues to boldly, relentlessly lie at the daily press briefings to not only the American people, but to the world as a whole.

In the not to distant past, the liberal media has ran with whatever was fed to them as the holy truth and if you didn’t believe it, you were a racist, misogynist, xenophobic, back-woods redneck, life hating republican.

The sad reality is that these labeled folks that work 60+ hours per week to feed not only their families, but the very same government that is calling them these names in the form of taxes.

Since there is now a looming government shutdown and more importantly, an economic disaster quickly approaching at months end, (you should know that this is not the first time the US has defaulted on it’s loans, despite what the idiot media tells you) it seems that the media has turned the tables on the Biden regime and rightfully so and as it should have been many years ago.

As I sit here writing this, I am left with a dumbfounded curiosity as to how much the US has fallen into a state of retardation (the action of delaying or slowing the progress or development of something or someone). Now before you go thinking about how much of an ass I am for using that word, it might behoove you to know that the word retardation means backwards, you know, the very same statement from those bashing on Trump by saying that he was going to set us back 300 years.

It might also behoove those that still do not understand to take a trip down any US street to find out if anyone even knows how to read, write, basic math, knows anything about history, geography or how to balance a home checkbook.

All of this leads to one simple brain cell that says “hey dummy, pick up a calculator and figure out what is really going on.”

In this case, we are going to use a Dollar Tree calculator. That’s right. A calculator that cost one dollar is all that it takes to solve many problems in the US government.

Many people even have these calculator things pre-installed on their cell phones, that is, if they could find it past all of the social media apps and everything else that keeps them living in a fake world.

So lets start with some very basic understandings of what is truly going on and how it is going to impact you by the time the year 2023 is done.

First. It really doesn’t much to understand that the US government has been raising interest rates in an effort to slow down inflation, but there are several catches/gotchas to it.

Lets use a simple home banking example. For intents and purposes, lets say that we have a checking & savings account and one credit card with an interest rate of 10% and that our saving account gives us 1% interest on the money we have in there.

Now lets say our our credit card has a $5,000 credit limit and because we are a smart family, we put $5,000 into our savings account in the event we lose our job, we will always be able to pay off our credit card, etc. If only the government was that smart, right?

Now, because the US government is not smart, congress passed a “inflation Reduction Act.” Supposedly to reduce the inflation rate and make the skies fill with colorful rainbows, kum ba yah happy days. Despite the warnings that this would do nothing to reduce inflation, also came the warning that this would add another 1.2 trillion to the US debt. We see where it went and now the US has another 1.2 trillion of debt to add to the pile.

Now going back to our home budget. If the interest rate is raised, it is passed on to the banks, including the one that you use. You might think “awesome. I’ll get more interest on that 5k that I have stashed in savings. Well, not really. Yes, you might wake up one day to find that you are now getting 4% on your 5k in savings. Extra 200 dollars sounds good; yes?

But what about that shinny credit card you have? The interest rate on it went up too. As of March, 2023, the current prime rate is 8.00% in the US, according to The Wall Street Journal’s Money Rates table. This source aggregates the most common prime rates charged throughout the U.S. and in other countries.

The federal funds rate is currently 5.00% to 5.25%. With that in mind, you can see how the “fed funds plus 3” rule of thumb works: 3 + 5.25 = 8.25.

Remembering that your credit card has a 10% interest rate. Most banks use the “interest + Prime” method to calculate the interest rate they charge you. If your interest is 10% and prime is 8.25%, then you are now being charged 18.25%, meaning that if you charged a 5k purchase on your credit card, you are going to pay roughly $912.50 in interest.

That, in the most simple terms, leaves you with a deficit of $712.50.

But it doesn’t stop there, the government continues to spend 6.85 million+ per MINUTE!, with the dream thought that the collections of taxes will pay for it and if not, then they’ll just raise taxes to punish those that work for the deeds of those that don’t.

But it just keeps getting worse! If the interest rate on your credit card went up, (a “loan” or a “debt”) then that interest rate also went up on the nations debt. The people that are holding that debt are now going to be astronomical amounts of interest on 31.4 trillion dollars of debt.

Basically, it’s a bankruptcy situation. You have buried yourself in so much debt, that there is no way to pay back. Ever!

And that is the purpose of Obama and Biden’s dream economics.