Tag: Treasury Department

The climate bill could short-circuit EV tax credits, making qualifying for them nearly impossible

Tina Marie (Ms. Cat)

The U.S. Senate passed a far-reaching climate, energy and health care bill on Aug. 7, 2022, that invests an unprecedented US$370 billion in energy and climate programs over the next 10 years – including incentives to expand renewable energy and electric vehicles.

The climate bill could short-circuitEV tax credits, making qualifying for them nearly impossible

China getting rid of US debt holdings amid Washington DC’s escalatory actions and overall US decline

Tina Marie (Ms. Cat)

This year marks exactly 50 years since the establishment of ties between the United States and the People’s Republic of China. US President Richard Nixon visited China in 1972 and initiated an unprecedented thaw in relations, the first ever between a Communist power and a leading capitalist one. It was a very unusual occurrence, especially as the (First) Cold War was reaching its zenith precisely at that time. Although Mao Zedong himself and Nixon paved the way for the establishment of this relationship, it was only after Deng Xiaoping took power that the modern Sino-American relationship grew and in many ways shaped the economic and geopolitical realities of our time.

China getting rid of US debt holdings amid Washington DC’s escalatory actions and overall US decline

Related:

US debt held by China drops to lowest in 12 years

Speaking at a Senate Banking Committee hearing, Federal Reserve Chairman Jerome Powell acknowledged that the recent battle with inflation could tip the country into another recession.

The Fed’s Inspector General Clears Jerome Powell of Wrongdoing in the Trading Scandal, One Day After Five Senators Accuse Him of Hampering the Investigation

Tina Marie (Ms. Cat)

By Pam Martens and Russ Martens, July 15, 2022

Yesterday afternoon, Mark Bialek, the Inspector General of the Federal Reserve, released a memorandum clearing Fed Chair Jerome Powell and former Fed Vice Chair Richard Clarida of wrongdoing in the trading scandal that has engulfed multiple officials of the Federal Reserve.

The Fed’s Inspector General Clears Jerome Powell of Wrongdoing in the Trading Scandal, One Day After Five Senators Accuse Him of Hampering the Investigation

Related:

Senators on Senate Banking Committee Accuse Fed Chair Powell of Hampering Trading Scandal Investigation

Larry Summers warns unemployment must rise to cool inflation

Tina Marie (Ms. Cat)1 Comment

Ex-Treasury Secretary Larry Summers warned that millions of currently employed Americans must lose their jobs in order for the Federal Reserve to succeed in its bid to cool inflation.

Larry Summers warns unemployment must rise to cool inflation

Related:

Larry Summers Says US Needs 5% Jobless Rate for Five Years to Ease Inflation

Maybe he can ship some more jobs overseas [/sarcasm]?! I’d suggest shipping him, overseas, but I wouldn’t even wish that on my enemy!

Biden officials worry their Russia sanctions were so powerful they also brought economic suffering to the US, report says

Tina Marie (Ms. Cat)1 Comment

Corporate ‘Self-Sanctioning’ of Russia Has US Fearing Economic Blowback

But some Biden administration officials are now privately expressing concern that rather than dissuading the Kremlin as intended, the penalties are instead exacerbating inflation, worsening food insecurity and punishing ordinary Russians [they don’t care about the people, the true purpose of sanctions is to encourage people to overthrow their leader] more than Putin or his allies.

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When the invasion [special military operation] began, the Biden administration believed that if penalties exempted food and energy [what exemptions?!], the impact on inflation at home would be minimal. Since then, energy and food have become key drivers of the highest US inflation rates in 40 years, a huge political liability for President Joe Biden and the Democratic party heading into November’s mid-term elections [they only care about winning the midterms].

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There’s no sign that administration officials feel their sanctions policy was a mistake or that they want to dial back the pressure. If anything, officials have said a key US goal is to ensure Russia can’t do to other nations what it has done in Ukraine [then tell Puppet Zelensky to negotiate instead of flooding Ukraine with weapons!!].

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The Biden administration rejects [denies] any suggestion that sanctions are part of the problem, emphasizing that the US isn’t penalizing humanitarian goods or food, and putting [shifting] the blame on Putin’s decision to attack Ukraine, including by targeting shipping on the Black Sea [which is blocked with mines].

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About 1,000 companies have so far announced that they are curtailing operations in Russia, according to data collected by the Yale Chief Executive Leadership Institute. That underscores one reason sanctions are so popular with policy makers: They essentially outsource US policy to the private sector [intentional and/or just being lazy?!], which makes it less surgical, less calibrated and less responsive to policy changes, said Smith, the former OFAC adviser.

This becomes important as all sides seek an end to the war [no, they don’t]. The lifting of sanctions can be dangled as an incentive to help bring about a diplomatic resolution to the conflict. But right now it’s hard even to offer that as a potential benefit of entering into negotiations because much of the pullout by American businesses has been self-inflicted [they screwed themselves]. Companies could face public blowback if they are seen as rushing back into the Russian market.

Headline stolen from:

Biden officials worry their Russia sanctions were so powerful they also brought economic suffering to the US, report says