syria

In Need Of A Friend

Dave Davis Commentary, Policy, Uncategorized , , , ,

While the media concentrates on the mystery of a celebrity’s mother’s disappearance, some important things are going on with little recognition. I have long advocated for U.S. support of the Kurds, one of the world’s largest ethnic groups without a nation, because of their strategic location:

Long friendly with America, the Kurds were the key to the destruction of ISIS’s Caliphate. They supplied the forces on the ground at great cost, which led to victory. However, our treatment of these friends since then hasn’t been very ally-like. Since the victory, the U.S. has allowed its overlords in Turkey, Iraq, and Syria to inflict damage on it. Recently, the Turkish-backedSyrian Revolutionary government has crushed the Kurds in that country while the U.S. stood by.

Why is this important right now? When protests broke out over Iran’s plummeting currency, our President urged them on, telling them “he had their back,” only to have the protesters mowed down by the thousands. Trump drew his red line, telling Iran’s leader not to crush his own people. The Mulahs ignored him. Now, Trump’s credibility is on the line. To keep his word, regime change seems the only solution.

While we and maybe with the Israelis can pound the Mullah’s forces from the air, Trump knows that committing large American ground forces is a non-starter, repeating the nation-building that Trump lambasted George W. Bush over.

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Trump vs. Trump?

Dave Davis Commentary, Policy, The Middle East, Uncategorized , , , ,

Recent events have added credibility to some of my posts. Not long ago, I cautioned that the Federal Reserve’s (Fed) series of interest rate cuts might be at odds with the actual inflation outlook. The Biden spending spree adds to our high national debt, while the Social Security (S.S.) Trust Fund runs dry at best in ten years, with both parties adding to the program woes. Medicare may be in even worse shape.

Biden’s proposals will increase S.S. payouts to government retirees, and with Trump’s plan not to tax any S.S. income, retiree checks could face cuts even sooner. Maintaining the current level of payments will mean even more government borrowing. Already expected to lend trillions more, bond buyers must absorb more extensive offerings in the future. In the face of increasing interest rate risk, they’ll want more upfront.

The first chart is the inflation rate, showing it is still above the 2 % target:

This chart shows the Fed’s interest rate cuts:

While the U.S. 10yr Bond interest rate returned to near its highs:

Mortgage rates stay high:

This week, the Fed cut short-term rates another quarter point but said it would probably cut two times next year instead of the signaled four. The Dow dropped over 1,100 points. Confusion is the only explanation.

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