US Budget Deficit Improved — The Demolition of Liz Truss Ex-PM of UK — Saudi Arabia to Join BRICS — China Electronic Cash — China GDP Growth 3.2% — Young Canadian Doctors are Dying - [10-23-2022]

Direct from BOOM Finance and Economics at the links below - Note - BOOM uses American English whereas AP uses British English.

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THIS WEEK’S EDITORIAL

US BUDGET DEFICIT IMPROVED:  In the 2022 fiscal year, the US budget deficit was $1.375 Trillion, compared with the $2.772 Trillion reported in 2021. Revenues to the Treasury increased by 21% to a record of $4.896 trillion.

Expenditures fell by a record $550 billion, or 8% to $6.272 Trillion. This may come as a shock to Republicans but the US Government has been prudent during the Biden Presidency to date. The $1.4 Trillion reduction in the deficit was the largest-ever single-year improvement in the US fiscal position.

BOOM welcomes this development. It indicates that the US Government is attempting to slow CPI inflation by slowing expenditures and increasing the tax take.  The inflation statistics and retail sales figures last week were a good result, offering some firm evidence that the peak of CPI inflation may be in the past. Watch closely for Core PCE inflation annual rate and Personal Spending releases on 28th October.

LIZ TRUSS EX PRIME MINISTER OF UK:  BOOM wrote last week that “Liz Truss will soon be gone”. Nobody thought it would be within 5 days. The UK was described as a nation on the road to a Failed State status. BOOM also wrote about poor political leadership in the other advanced economies of the West.  But BOOM’s words describing the West’s leaders as being recklessly ambitious, energetic, inadequately educated, uninterested in factual analysis, essentially immoral and willing to do “whatever it takes” were relatively kind words when compared to what an English political commentator, Peter Oborne, had to say about Liz Truss.

Speaking in a video before Truss resigned, he described her as “empty, incompetent, devoid of leadership skills, Liz Truss is finished. The super-rich have been running the Truss government. Liz Truss lives in an invented world. She lacks judgement, empathy, understanding, humility. She makes decisions she doesn’t understand, she makes statements which are meaningless, and she now has taken to lying. For her, politics is all about self-promotion.“

You can watch the Demolition of Liz Truss on YouTube. Just search “Peter Oborne Absolutely DEMOLISHES Liz Truss”. It is a riveting 9 minutes full of truth — a rare commodity these days. No Prime Minister could have survived such an attack.

However, sadly, the description that Oborne uses to describe Truss could be just as easily used to describe almost any leader in the Western advanced economies. Think of Biden, Macron, Rutte, Von Der Leyen, Stoltenberg, Draghi, Trump, Clinton, Ardern, Trudeau, and Morrison. For them all, politics seems to be more about self-promotion than just about anything else.

They are all self-obsessed, absorbed with their “global” agendas and essentially blind to the concerns of the common people under their gaze while caught up in a world of celebrity. They all appear directed by globalist forces and dictated to by the mainstream media. They are focussed on only a few selected, Globalist topics — Climate Change, Covid, “Putin”, “the Science”. They appear devoid of any sense of history, destiny and they certainly all lack empathy.

Fame has become the attractor, even in times of war in lesser economies. The President of Ukraine, for example, recently took time out for a glamorous fashion photo shoot with his wife. As the war in Ukraine raged and men were dying on the frontline, they were photographed at Mariinsky Palace by the famous photographer Annie Leibovitz. Zelensky should be fighting a war or, better still, negotiating the end of it, not getting dressed up for a photoshoot.

SAUDI ARABIA TO JOIN BRICS:  Last week, BOOM described how Saudi Arabia has been moving steadily away from the US and towards China and Russia. Since then, the South African President Cyril Ramaphosa has stated that Saudi Arabia wants to join the BRICS. This happened after Ramaphosa visited the nation. He said “the crown prince did express Saudi Arabia’s desire to be part of BRICS, and they are not the only country”.

The BRICS group of nations includes Brazil, Russia, India, China and South Africa. They will meet next year in Johannesburg for their annual summit. It is expected that they will consider adding such nations as Saudi Arabia, United Arab Emirates, Turkey, Egypt and Algeria to the organization. If that were to happen, BRICS would comprise over 3.5 Billion people — almost half the population on Earth. The numbers matter.

Why? Because that is a very large market for Saudi oil and gas. In alliance with Russian energy, Saudi’s oil and gas could make BRICS an economic powerhouse. And that powerhouse would certainly settle all of their international transactions in their local currencies and not with US Dollars.

Ramaphosa said — “The BRICS nations are going to be meeting in a summit next year under the chairship of South Africa, and the matter is going to be under consideration,” Ramaphosa said. “And already, a number of countries or nations have been making approaches to the other member countries, and we’ve given them the same answer – to say it’ll be discussed by the BRICS partners themselves, five of them, and thereafter a decision will be made.”

CHINA ELECTRONIC CASH:  China is the first nation to introduce electronic cash into the real economy, a form of fresh new money that does not generate any interest costs. It is called the E Yuan (E-CNY). In a series of trials over the last few years, the government gifted E Yuan to people via a series of lotteries.  China’s electronic cash transactions over the last 20 months amounted to about US $14 billion. That represents only 0.005% of the annual GDP of China, expressed in US Dollars, a tiny amount.

The Chinese central bank, the Peoples Bank of China, the PBOC, said adoption of its E Yuan continues to progress and that it will continue to carry out research and development on it. 261 million people now have an E Wallet. The E Yuan is still in trials in 23 cities, including Beijing, Shanghai and Shenzhen.

BOOM is a big fan of electronic cash issued by governments via their Treasury departments. It can be won in lotteries or distributed to welfare recipients in targeted areas. Alternatively, the Treasury can (theoretically) also pay its expenses with it but this would be an untargeted distribution. It can be geographically limited, merchant limited or time limited.

Thus, it can be used to speed money velocity in a region or within a sector of the economy. That is the prime purpose of electronic cash. Like normal cash, it can be recalled at any time, using the banking system to do so. There is no need to create it as anything different to the National currency. It is essentially just an increase in transactional volume of the national currency as determined by the Treasury when required.

BOOM believes that all other economies will eventually have to follow China in this regard. As working age populations steadily decline in most advanced economies, a decline in the creation of bank loans must follow. That means that the supply of fresh new money (credit money) must decline. Electronic cash used wisely can correct the imbalance of money in an economy.

CHINA GDP 3.2%: China’s economic growth will slow to 3.2% this year as the economy slows from the impact of the property market slow down and zero-COVID policies. This is the prediction from polling a range of Chinese economists on the matter.  Chinese economic growth appears to be slowly declining as the year progresses. The government’s official target is around 5.5%, unveiled earlier this year. However, it seems that the target will not be met.

CANADIAN DOCTORS ARE DYING: Young Canadian doctors are dying and it looks like they are dying from the Covid Vaccines, according to Dr William Makis, a senior doctor in Alberta, who recently wrote an Open Letter to the Canadian Medical Association (CMA). Here it is. It makes for sobering reading as it describes the deaths of 80 young doctors soon after having their Covid Boosters. Everyone should read it and take note.

Dear CMA Presidents, Dr.Alika Lafontaine (2022‐23) and Dr.Katharine Smart (2021‐22)  Re: Sudden deaths of 80 young Canadian doctors since rollout of COVID‐19 vaccines

On September 3, 2022, I wrote you a letter regarding the sudden and unexpected deaths of 32 young Canadian doctors since the rollout of COVID‐19 vaccines, and I raised concerns about COVID‐19 vaccines and vaccine mandates contributing to these sudden deaths. The letter went viral on social media; it was viewed by millions of people worldwide, was translated into dozens of languages, and became the topic of numerous podcasts, media interviews, internet videos and news articles.

There has been a tremendous interest worldwide into what is killing Canada’s fully COVID‐19 vaccinated young doctors. Unfortunately, Canada’s healthcare leaders, including CMA, do not share this interest.  Both of you failed and refused to respond to my letter, and you also failed or refused to respond to inquiries made by American philanthropist, Mr Steve Kirsch, as well as inquiries made by journalists.

I am now providing you an update with information about 80 young Canadian doctors who died suddenly or unexpectedly since the rollout of COVID‐19 vaccines. Four more doctors have died since my previous letter, and these unexpected deaths are accelerating. You cannot continue to ignore this.

My team has assembled a database of 1638 Canadian doctor deaths during the period 2019 ‐2022, with 972 of them from CMA’s own website. Our preliminary analysis of this extensive data suggests that Canadian doctor deaths under age 50 in 2022 will be 2‐fold higher compared to the 2019 – 2020 average. Shockingly, Canadian doctor deaths under age 40 are already 5‐fold higher in 2022 compared to the 2019‐2020 average, and Canadian doctor deaths under age 30 are 8‐fold higher.

McMaster University recently announced the sudden deaths of 3 young fully COVID vaccinated medical residents during the summer of 2022, which is unprecedented. All Canadian medical students and residents were forced into unscientific, unethical, cruel and harmful COVID‐19 vaccine mandates.

I implore you again to remember your Hippocratic Oath and your own CMA Code of Ethics, and call for an immediate halt to all COVID‐19 vaccine mandates in Canadian healthcare.

Thank you,

Dr William Makis MD, FRCPC

In economics, things work until they don’t.  Until next week.  Make your own conclusions, do your own research.  BOOM does not offer investment advice.

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BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY: LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans). https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how global banking systems really work.

AND Watch for 4 minutes, this Bank of England explanation: Money is essential to the workings of a modern economy, but its nature has varied substantially over time. This video describes what money is today.

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.  EMAIL: gerry{at}boomfinanceandeconomics.com

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