Biden’s Student Loan Plan “SAVE” Will Cost $230 Billion

Biden’s Student Loan Plan “SAVE” Will Cost $230 Billion:

As student loan debt in America swells to a staggering $1.7 trillion, President Joe Biden’s new SAVE plan could actually cost $230 billion, a CBO report finds. This is not only a classic case of robbing Peter to pay Paul — it will bring more inflation, make college more expensive and give the federal government unprecedented control over higher education.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

The federal student debt loan amount is $1.7 trillion. This debt portfolio is an installment personal loan. Payments occur monthly. Active students have loan totals not due this year. We have no idea how much of the total will be repaid.

The Saving on a Valuable Education (SAVE) plan is President Joe Biden and Secretary of Education Miguel Cardona’s reply to the Supreme Court, who ruled the administration’s original sweeping forgiveness program was unconstitutional. The SAVE plan was announced in August 2023. The White House bulletin included a table of payment amounts, indexed by the number of dependents and size of loan.

It is the greatest gift for all income-dependent student-debt payoff plans. It is a Trojan horse for the state to control higher education.

Read moreBiden’s Student Loan Plan “SAVE” Will Cost $230 Billion

US Producer Prices Surge At Fastest Pace In 15 Months As Services Costs Soar

US Producer Prices Surge At Fastest Pace In 15 Months As Services Costs Soar:

After yesterday’s soft CPI, this morning’s PPI seems somewhat ‘less than’ but as we noted earlier, in fact it is key to the ongoing disinflationary trend (and in fact suggests all may not be trending smoothly).

After May’s MoM deflationary impulse (thanks to a plunge in energy costs), June was expected to see a modest 0.1% rise (and we have seen energy prices starting to rise again). Sure enough, headline PPI printed HOT at +0.2% MoM (and May was revised higher), pushing the YoY print up to 2.6% (well above the 2.3% expected)…

That is the highest PPI since March 2023.

Core PPI rose by 0.4% MoM (double the 0.2% exp), sending the YoY price rise up by 3.0% (also the hottest since March 2023)…

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Nearly Half Of German Welfare Payments Go To Foreign Migrants

Nearly Half Of German Welfare Payments Go To Foreign Migrants:

The argument that mass migration is needed to support GDP levels and pay for pensions took another blow when it was revealed 47.3% of welfare recipients in Germany are foreign migrants.

According to newly released government statistics, nearly half of the 5.49 million people in Germany on benefits are foreign migrants, four percentage points higher than in 2022.

€42.6 billion euros is now being paid out in welfare compared to to €36.6 billion in 2022.

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US Spent A Record $140 Billion On Debt Interest In June, 30% Of All Tax Revenues

Winter is coming!…

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US Spent A Record $140 Billion On Debt Interest In June, 30% Of All Tax Revenues:

And putting it in context, the $140 billion in gross interest spending was just over 30% of all US receipts (mostly taxes) in June..

… a staggering number fast approaching the threshold where everyone will be forced to admit the US has crossed into a Minsky moment.

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Costco Is Raising Membership Fees On 52 Million Members, Wall Street Views As ‘Positive Catalyst’

Costco Is Raising Membership Fees On 52 Million Members, Wall Street Views As ‘Positive Catalyst’ :

Shares of Costco Wholesale Corp. are higher in premarket trading in New York after the warehouse-club chain announced annual price hikes across its members for the first time in years.

Starting September 1, Costco Gold Star, Business, and Business add-on members across North America will see an increase of $5 to their annual membership costs, bumping up from $60 to $65. Executive members must pay $130, a $10 price hike. Membership price hikes will impact all 52 million members.

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Pepsi Warns US Snack Demand “Subdued” As Consumer Slowdown Worsens

Pepsi Warns US Snack Demand “Subdued” As Consumer Slowdown Worsens:

PepsiCo reported weaker-than-expected revenue growth in the second quarter on Thursday as consumers dialed back snack spending. The junk food giant tempered its full-year outlook on a more challenged consumer. This reflects a broader consumer slowdown trend, particularly impacting working-poor households amid elevated inflation and high interest rates.

CEO Ramon Laguarta wrote in a filing that the company’s North American snack demand was “subdued” during the second quarter and noted sales volumes declined.

On a call with investors, Laguarta said customers across all income brackets are reducing snack spend and trading down to store brands.

“In the US, there is clearly a consumer that is that is more challenged,” the CEO said. This suggests the cumulative impact of several years of price hike has pushed consumers over the edge.

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Homes In California’s Big Cities Cost 10 Times More Than Average Income

Homes In California’s Big Cities Cost 10 Times More Than Average Income:

Authored by Jill McLaughlin via The Epoch Times,

Buying a home in California slid further out of reach for many residents in 2023, especially in larger metropolitan areas, according to a recent Harvard University housing study.

The report found some of the highest disparity between wages and housing prices in Northern California.

According to the report released June 20, the Silicon Valley cities of San Jose, Sunnyvale, and Santa Clara had a median home sales price 11 times higher than the area’s average annual wage of nearly $113,000 in 2023.

Median home sales prices are determined by finding the midpoint of all sales, where half sold for more and half for less.

The same was found at the coast in Santa Cruz and Watsonville, where 2023 housing prices were also 11 times higher than the average yearly wage of almost $68,000.

In Los Angeles County and Anaheim—in Orange County—the median home sales price was about 10 times more than the average wage of $98,200.

Further south in San Diego and Carlsbad, housing reached nearly nine times more than the average wage of $76,000 last year.

“Both homeowners and renters are struggling with high housing costs,” the authors of the report, called “The State of the Nation’s Housing 2024” wrote in its summary.

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Senators Strike Deal To Ban Stock Trading By Members Of Congress

…and this will have ZERO effect on insider trading by the likes of Pelosi.

However, insider trading will get slightly more difficult.

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Senators Strike Deal To Ban Stock Trading By Members Of Congress:

A bipartisan group of senators including Josh Hawley (R-MO) on Wednesday came to an agreement on a renewed effort to ban members of Congress from trading stock.

Penalties for violating the ban would be the greater amount of either their monthly salary, or 10% of the value of each covered asset in violation.

In 2021, Ossoff introduced a ban and put his own stock portfolio in a blind trust to lead as an example. The effort gained traction following revelations that several senators made  very profitable trades in as the Covid-19 pandemic unfolded, when members of Congress were receiving classified briefings warning of how disastrous the virus could be for the US economy.

Several insider trading investigations were launched by the FBI – but, surprise! no criminal charges resulted.

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