Offended But Not Surprised

Russia downed a U.S. warplane (drone) over the Black Sea in international waters.  The White House’s response was that the Russian action was “environmentally irresponsible.“ No, Dickhead Joe, it was an act of war.

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Once again China Joe completely ignored the Rule of Law.  Three days after a federal judge struck down his “parole” for illegal immigrants because that program was contrary to the law, Joe again ignored the law when it prevented him from doing what he wanted.  This time he gave billions of dollars to democrat donors by ignoring the insurance limits of the FDIC.

We are going to need the FDIC funds to bail out more banks because the balance sheets of many banks are now in the red.  Banks loan trillions of dollars secured by real estate. Most of those loans are secured by non-commercial mortgages with lengths of 15 years or more.

The federal reserve has been keeping interest rates artificially low since the Obama administration bailed out Wall Street in 2009.  Because interest rates were artificially low, most borrowers refinanced their mortgages with long-term fixed-rate mortgages. It was the smart thing to do because, as anybody who has taken at least one class in macroeconomics would know, the excessive government spending over the past three years was going to cause inflation.  I have been writing about the risk of artificially low interest rates for at least 10 years, during which time I have constantly advised people to get long-term fixed rate mortgages so they could end up paying them back with inflated dollars.  The spending over the past two years, however, has accelerated the inflation to a point that it is dangerous for any bank to hold a long-term residential mortgage or a long-term government bond.

From the lender’s standpoint, those loans are a liability now.  To get any kind of positive return on their investment, the banks need to sell that debt at a discount so they can use the funds to invest in new loans with higher interest rates. The problem is with hyperinflation the value of the old loans is declining to a point that banks will have to take severe losses if they sell them, and bigger losses if they keep them.

In addition to real estate loans, banks invest in USA Treasury Bonds.  These too lose their value when the government spends more than it receives.

Yes, there will be more distressed banks.  Look for the government to end up spending $1.5 to $2 trillion before this is over.  You know the taxpayers will be on the hook because Joe promised we would not be.  When Joe speaks only two things are true. He is either wrong or lying. Here it is both.

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Something that is suspicious about Joe’s behavior is that on Monday morning he guaranteed repayment of depositors such as Roku (that had $580 million on deposit in Silicon Valley Bank).  On Monday night Joe had a “private” fundraiser in the neighborhood, at which executives of RoKu and other Silicon Valley Bank depositors were present.

So, on Monday morning China Joe gave them hundreds of millions of dollars from government funds and on Monday night they gave some of that money to the democrat party.  Nothing to see here.

BTW, Roku only has 1,600 employees worldwide. There is no way in hell they needed $580,000,000.00, to make payroll this month. It is just one more lie from the Biden Administration, a gang that lies every time they speak.

This is corruption on a level that could even make Hillary Clinton jealous.

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Speaking of China Joe’s lies, after he called Ron DeSantis “sinful” for protecting Florida children from Whack-job radicals trying to change their gender, Ron posted some video of what they were doing to the children.  Victory: Ron.

BTW: Do you think a child is safe with a parent who says they knew their one-year old son wanted to change his gender before the boy could even talk? I suggest we require the parent to undergo the surgery. And then take their child away.

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Now that the GOP-controlled House is doing real “oversight,” the Biden Family corruption is getting clearer.  After Bank of America complied with a subpoena, the House committee discovered another $3 million + in Chinese funds spread out over the family.  None of them were registered foreign agents.

In light of the BoA revelations, the Treasury Department finally dropped their challenges to the congressional demands for suspicious action reports.  I think the people “in the know” are starting to realize that Hunter Biden will be indicted before Labor Day and there is no way Joe Biden will be able to run for reelection.

As soon as it is clear Joe will not be running for re-election, his political capital will disappear faster than members of Kammy Harris’s fan club.  China will probably pull the plug on Hunter too.

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Here is a tip for all of my black friends: move to San Francisco immediately. That city wants to give you $5 million for being black. If you add that to the $3.8 million the State of California wants to give you, you could fly back here on a private jet and still have more than $8 million in the bank. Remember to pay your lawyer.

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