1) 2022 is shaping up to be a huge year for the Supreme Court, and liberals are panicking:
The court has accepted a series of transformative cases with few available exit ramps. It recently added to that list.
In other words, it is likely to issue historic rulings on abortion, gun rights and an assortment of other issues.
For those calling to pack the court to ensure a liberal majority, the already furious commentary is likely to reach near hysteria if the conservative majority rules as expected in some of these cases in the first half of 2022.
2) The Fed has no way to stop the runaway train of inflation.
In the second week of December, the Bureau of Labor Statistics reported that the price of almost everything (except plane tickets) went up dramatically since 2020. This price inflation has hit food, housing, gas and other essentials at a clip not seen since “stagflation” in the 1970s and early ’80s.
The difference now is that we’re fighting with our hands tied behind our back, because meaningful interest rate increases – which are kryptonite for inflation – are currently impossible.
…interest rates can be an important policy tool, but raising them becomes dangerous and untenable when there is too much debt in the system. And this is exactly where we are now.
In 2007, the federal government had borrowed a total of $9 trillion and paid about 5% interest on it, with an annual interest total of $450 billion. Today, it owes $29 trillion at 1.6%. Annual interest: $464 billion. It’s a neat trick racking up debt without paying more for it, but it leaves us vulnerable. For every one-percentage-point increase in rates, the interest payment will go up by $290 billion or more per year. That’s nearly half of the annual U.S. military budget – unless we start reducing the debt.