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Dr. Rasmus reviews the various dimensions of the two year Covid war on the US Health Care system itself, as well as some of the permanent legacies it’s leaving on the US economy in general.  The man failures of US health policy in relation to the Covid war. Covid’s impact on US and globally involving deaths, hospitalizations and infections. Effects on US labor, product & financial markets, and inflation longer term. Show concludes with commentary on Biden’s collapsing public approval ratings (33%) in light of the increasingly apparent failure to get voting rights passed in the Senate. Why the US political system IS WORKING as it was intended: The role of the Senate and Supreme Court as checks on democracy in the original US Constitution of 1787.

Dr. Rasmus provides his review of the major developments and events of 2021 involving both the US/Global economy and US/Global politics. Predictions for 2022 are offered for both as well.

Dr. Rasmus dissects the Federal Reserve Bank’s decision this past week announcing 3 interest rate hikes next year in 2022 and a faster retreat from its Covid era $120 billion per month injection of free money to bankers and investors. In a ‘Monetary Policy 101’ presentation, Rasmus explains how the Fed provides that free money (called ‘liquidity’ in economist parlance) and consequences of it for the real economy and financial market bubbles. Fed traditional bond buying, QE buying, & what’s called ‘Reverse Repos’ are described as channels of liquidity injections by the central bank. Can monetary policy address supply side inflation? Powell’s Fed is compared to Volcker’s in 1980-81. Does the Fed really control interest rates? Why financial markets surged after Powell’s announcement. Rasmus briefly comments on the now dead fiscal policy of the Biden administration. And predicts a slowing US economy in 2022. A concluding comment is offered on why US government economic statistics are distorted by seasonality adjustment that’s broken in the era of Covid—and why current positive growth numbers for manufacturing and GDP are really negative.

Today’s show focuses on the latest inflation (CPI) report released, showing inflation still rising by 6.8% (year on year). What are the causes? The show reviews how much may be due to supply issues (global supply chains & domestic supply issues), US consumer Demand, and inflationary expectations and just business price gouging. Looking at the main items of last month’s inflation—food, gasoline, shelter, autos, rents, clothing, etc.—Dr. Rasmus concludes inflation is driven in part by global and domestic supply causes, very little due to consumer demand, and very much due to rising inflationary expectations and widespread business price gouging. The latter is especially evident in rising cost of gasoline and rents and certain domestic food production (meat, milk, cereals, etc.). Global supply chains are responsible for autos, clothing, electronic goods, etc. But the main culprits are food, gas, rents which have little to do with supply or demand. Rasmus explains why the 6.8% is probably underestimated and inflation more than 10% and why it won’t be temporary. The show concludes with an analysis of what’s going on in the Ukraine, with US confrontation with Russia.

Dr. Rasmus explains exactly what Artificial Intelligence is, how it so far has penetrated business and industries, and what are the various forecasts of its potential impact on jobs the rest of this decade and beyond. The ideology, misrepresentations, and falsifications surrounding the concept: will it produce as many jobs as it destroys? Like previous industrial technology revolutions. Or is it different this time? What occupations will be especially hit hard by AI? How will the AI and nextgen technology revolution now underway affect the future of work and employment in the USA? Dr. Rasmus also briefly reviews last month’ job figures reported this morning by the Labor Dept. Is it really a ‘tight labor market’ being messaged by the mainstream media? Also noted is the Federal Reserve chair, Jerome Powell’s, statement this past week that the Fed will start tapering and raising rates earlier than reported previously. What does that mean for the economic recovery?

Dr. Rasmus dissects the Infrastructure and Reconciliation bills’ latest content. What’s in and what’s out. Are they really ‘paid for’? Or are they funded by ‘smoke and mirrors’? What’s the actual Deficits impact? Why Biden’s Infrastructure Act signed last Monday is not a stimulus and won’t have much effect on the US economic recovery; why the Reconciliation (Build Back Better bill) just voted on in the US House likely won’t pass and if it does will be gutted to around $500B. The show next discusses the emerging Covid 5th Wave and its economic impact and why inflation in the US economy has become structural and not transitory. The show concludes with updates on the US-Mexico-Canada meeting, China’s property financial crisis, and recent developments in the US labor movement with the Deere strike settlement, Teamsters voting, and organizing campaigns at Amazon and Starbucks.

Dr. Rasmus addresses the big topic of the week: accelerating inflation now rising 6.2% according to the latest CPI report and fastest in 30 yrs. Rasmus explains why the 6.2% is actually a low estimate. The multiple causes driving it today are explained: global supply chains breakdown, US domestic supply problems, price gouging by US companies with excessive market power, consumer demand, and the role of global financial commodities speculators. Why the latter is driving global crude oil prices to 2008 levels once again and spilling over to US economy as major factor in US domestic inflation.  Rasmus explains why the mostly supply side and commodities speculator driven forces will continue for some time well into 2022. How inflation will slow the US economic recovery as it surges. And why a new causal element driving inflation is now appearing: inflationary expectations. Inflation + slowing economy + no government further stimulus = political wipe-out of Democrats in 2022 midterm elections.

Dr. Rasmus explains how the Federal Reserve has provided $5T in free money to banks and private investors during the Covid recession, when they didn’t need it. That’s $120B every month. The Fed this past week reduced that to…$105B a month. How the monetary system works to subsidize financial markets, bankers, and investors. Why mainstream media avoids explaining this. Meanwhile, progressive democrats reaching their ‘endgame’ in passing the Infrastructure and Reconciliation bills in the US House. How Pelosi is maneuvering them to a final passage of the Infrastructure bill only is explained. Last month’s Employment and Jobs report out today is also dissected to show it reflects a weakening economic rebound—and not the hype presented by the media

 Dr. Rasmus dissects & debunks the new billionaires taxes coming out of Democrat Congressional Finance committees. How billionaires like Elon Musk and others will easily avoid paying the tax the way it is being formulated. Why the individual billionaires tax will likely be tied up in courts for years. Rasmus gives a short history of the passage of the Income tax in 1913 and explains why a constitutional amendment will probably be necessary to approve a billionaires tax which is based on wealth accumulation, not income. How billionaires would easily avoid the tax even if approved by the US Supreme Court. The companion proposal in Congress to tax corporations that make $1 billion in profits with an Alternative 15% corporate tax is also debunked. Why the Democrats are raising both new proposals, as they slash the Build Back Better bill and drop real tax hikes previously proposed in order to placate Senators Manchin & Sinema. Rasmus predicts the progressive caucus in the House will soon capitulate to the much reduced $1.5T Build Back Better bill that remains. Concluding the show, US 3rd Quarter GDP data just released in analysed, which shows a significant slowing of the US economy growth for various reasons. (Note: Read Dr. Rasmus’ latest blogpost, “The ‘Smoke & Mirrors’ Billionaires Tax” at his blog, http://jackrasmus.com. )

The show leads with a critique of Biden’s town hall meeting last night on CNN and concludes with a discussion of what’s happening in China with its property markets bubble and coming defaults. The Biden town hall reveals the failing strategy of the Biden administration with regard to passing much needed fiscal social programs, climate change investments, jobs, and now accelerating inflation. Biden reveals what’s really behind the negotiations with Manchin and Sinema. Dr. Rasmus next discusses the causes behind the current supply driven inflation and predicts prices will continue rising well into 2022. And the US economy will continue slowing in the closing months of 2021. Stagflation (both inflation and weak jobs recovery) is the condition of the moment. Dr. Rasmus warns events in China’s property markets, with defaults at Evergrande and other developers, now inevitable, bear close watch. Is what’s happening in China housing the beginning of the next ‘subprime mortgage’-like global financial crisis?

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