In God we trust

portrait of a man etched on paper

Twitter founder, Jack Dorsey has tweeted out a rosy prediction that “hyperinflation” is comingZeroHedge sounded a warning, reporting that the Reserve Bank of Australia shocked traders after refusing to buy a two-year bond. Treasury Secretary Janet Yellen conceded that inflation will continue for a while, but should level out around the middle of next year. But maybe the chickens may have come home to roost. UnHerd did a quick review of how we got here, with “quantitative easing” making economies reliant on printing money and central bankers gathering power to themselves.

We at Mad Mondays are certainly not economists, but we do know who owns the cattle on all the hills. There is need for temperance and prudence in these days, but we do not need to despair. St Paul told the Philippians that God would supply all their needs and as Rev Fisk has said, for reminders of God’s faithful provision, Psalm 37 is the bomb. “I have not seen the righteous forsaken, nor his descendants begging bread.”

Meanwhile, CNBC reports that people are not spending as much. Perhaps that is because things are more expensive? McDonalds and Coca-Cola put their prices up in response to rises in CPI.

In crypto news, Mastercard has said it will allow crypto transactions. And in weird crypto news, there is a new Doge coin competitor and investors are bidding on a cube of tungsten which is located in Illinois. The winning bidder will not be able to ship the cube, but will instead be allowed to visit it once a year.

The director of the United Nations World Food Program has called on Elon Musk to help feed the world’s hungry. Musk said if  the UNWFP could show how his money would help solve the problem of world hunger, he would gladly give a few billion to the cause. Maybe Musk knows what Jesus said about the poor always being with us..  🍿

Wide open market

Job creation numbers were much lower than expected this August with only 230,000 positions added. Quite a bit less than the predicted 720,000. Yet other news reports suggest there is a labor shortage, not a job shortage. McDonalds in Oregon is hiring 14 and 15 year olds. Amazon has said it will drop the marijuana screening requirement in order to recruit more delivery drivers. Yahoo Finance says that half of US small businesses have positions to fill. Quite a few states have ended COVID relief payments, with Axios concluding that the reason people aren’t working is that they fear getting sick

It will be interesting to see how vaccine mandates play into this problem. Governor De Santis pointed out (linked above) that many people have worked through the pandemic, some by choice and others because they must, when no vaccination was available. NBC reported that 40% of staff in one Miami hospital remain unvaccinated. If they haven’t taken the vaccine by now, perhaps they don’t want to. What if they all resigned? 

The Federal Reserve says it will soon stop pumping stimulus funds into the economy in the light of rising inflation, which saw the largest increase in August since 2010. While Americans have noticed price increases on fuel and groceries, the National Economic Council Director says if you take out beef, pork, and poultry, prices are pretty normal. Raccoon, anyone?

Bitcoin had a bit of a crash last week on the back of El Salvador adopting the cryptocurrency as legal tender. The millennial President of El Salvador, who swept to power two years ago, is a bit of a dark horse.

Payin’ the bills

The value of Bitcoin surged after rumors circulated that Amazon was considering accepting purchases in the cryptocurrency. After Amazon said they weren’t planning such a change in the near future, Bitcoin dropped, but is expected to recover soon.

A crypto expert has tweeted that the infrastructure bill being considered by Congress could “sink the American crypto industry.” It could all just be worrying out loud, but it would seem that the government sees cryptocurrency taxation as the cash cow needed to pay for the trillion dollar plan.

The Chinese government has upset the global financial scene by banning private sector tutoring companies from making money. Educational companies working in China will become non-profit entities, which prompted panicked selling of stocks. Many Chinese parents employ tutors for their children, creating an industry worth around $120BN. The CCP is looking to reduce the cost of raising children, presumably to encourage couples to have more of them. The move by the CCP comes on the back of a broad crackdown of China’s tech sector.

In a side note, the first person tried under new Hong Kong security laws has been found guilty.

The US economy has returned to its pre-pandemic size, but despite government insistence that inflation is only a “temporary” problem, many sites are reporting that key indicators suggest otherwise. Panicking over inflation usually just makes things worse, so we’ll keep living like Jesus is coming back tomorrow and building like he’s not coming back for a century.