The Cleansing Fire

But a Destructive One [The Daily Reckoning] September 09, 2022 [WEBSITE]( | [UNSUBSCRIBE]( The Cleansing Fire - “The combination of inflation and recession acts as a cleansing fire, revealing awful things that we previously did not want to face”… - Some questions for congressional candidates… - What should Congress do about the Fed?… [QUICK! Count how many pennies you see.]( [Click here for more...]( Here’s why: If you missed out on making a fortune with cryptocurrencies, the recent crash has finally given you your chance to scoop up cryptos for pennies on the dollar. Literally. Because there’s a cryptocurrency quietly preparing to conquer the marketplace… and it’s trading for 96% below its all-time high. In fact… … it’s trading for the number of pennies you counted above. Get your hands on this bargain crypto while you can. Find out how to make up to an 8,788% return with crypto by 2025. [Click Here To Learn More]( West Hartford, Connecticut September 9, 2022 Editor’s note: A “cleansing fire,” Ben Bernanke called it. Today, Jeffrey Tucker shows you how the combination of inflation and recession — stagflation — will reveal “awful things that we previously did not want to face.” He also raises 12 questions every congressional candidate should have to answer. [Jeffrey Tucker] JEFFREY TUCKER Dear Reader , “You could call that stagflation.” Those are the words of the once-revered Ben Bernanke, giving his outlook for the near-term future of the American and world economies. Strange, isn’t it, how the Fed’s ex-chairman tends to be more honest with us than the present one. After Alan Greenspan left the position, he wrote a pretty good book decrying the whole existence of the fiat money regime, while Bernanke is carefully distancing himself from the policies of the current Fed. It’s been generations since we last experienced stagflation on this level, and it has never happened in the context of puffed-up tech giants and financialization of the sort that dominates the planet now. We are very likely to learn a number of things concerning the truth of the economy. This is because the combination of inflation and recession acts as a cleansing fire, revealing awful things that we previously did not want to face. Simply put, we are now experiencing an economic crisis that could get worse. Inflation is roaring. The recession most of us already sense could soon become official. What Are You Going to Do About It? Many voters are looking to their elected representatives to address the problem. What follows are questions that I would like to pose to any and all candidates for office concerning their views on essential issues related to the economic well-being of Americans. I was prompted to put them together by a primary debate for a U.S. congressional race in Tennessee at which I was a questioner. 1. Every poll shows economic concerns rank very high among the public concerns right now. Congress has some but not all authority over policies that affect people’s lives in this respect. Let’s first address the issue of spending over which Congress has primary control. Before pandemic lockdowns, federal spending stood at $5 trillion per annum (five times as high as when Ronald Reagan said the budget was out of control and needed to be slashed). This soared over six months by 82% to $9.1 trillion. The total pulled back a bit to $6 trillion before soaring under Biden to $8 trillion. It seems to have settled back to $5.8 trillion but Congress is now being pushed to more spending. [Attention! Before You Read Any Further…]( Before you read any further in today’s issue, an urgent situation needs your immediate attention. If you don’t plan on claiming this new upgrade to your Strategic Intelligence subscription, you’re missing out on a huge opportunity. Right now is your chance to grab one of the biggest (and most valuable) upgrades our company has ever made to a newsletter. I’m taking Strategic Intelligence to an entirely new level and I’d hate to see you left behind. [Click Here Now]( In the course of 2½ years, the federal debt skyrocketed from $23 trillion to $30.5 trillion, or 32.6% in a mere 28 months. The national debt now stands at 125% of GDP. All of this spending was approved by Congress. - Do you see this as sustainable? - What do you believe needs to be done to repair the damage to the balance sheet? - With Biden as president, what can Congress do in the area of spending? What About Inflation? 2. Inflation ranks very high among concerns of voters today. The Biden administration has attempted to blame Putin, oil companies, meat-packers and of course the broken supply chains for the problem. He has suggested prosecuting companies for raising prices too highly too quickly. But many economists are pointing to deeper structural problems. What in your mind bears primary responsibility for the dramatic fall in the purchasing power of the dollar? What if anything can Congress do about it? 3. I would like to address the sufferings of small businesses today. Most estimates are that one-third or more of small businesses closed during the lockdowns and have not come back. Large businesses, particularly tech companies, thrived as never before. Small-business optimism is at a 48-year low. Is it possible to construct policies that seek some kind of redress? What kinds of things can Congress do to make life easier for small businesses? 4. History bears witness to how both parties were initially supportive of lockdowns that shut business, schools, churches and playgrounds and divided workers into essential and nonessential. There has since been a strange silence among Republicans about this event. Do you believe that the Republicans in Congress at the time should admit responsibility for this panicked reaction? Are there conditions that you think would warrant governments stepping in to shut businesses and other institutions in the future? 5. The U.S. today faces myriad trade conflicts in the world both concerning imports and exports, as well as outsourcing and foreign investment in the U.S. The U.S. Constitution clearly gives the trade power to Congress, in Article I, Section 8: “Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.” Today, the power over trade has been given to the U.S. president. Do you believe that Congress should take it back and what effect do you believe that would have on U.S. international relations in the economic realm? [Trump’s Final Gift To America]( [Click here for more...]( There’s a little-known way Trump could – one day – have his revenge. It involves a Federal Ruling he oversaw in the final year of his Presidency that could change America forever… unleash an estimated $15.1 trillion in new wealth… and create countless ways for everyday Americans to benefit. What is this little understood decision? And how will it impact you? All the important facts are here. [Click Here To See Them]( The Deep State 6. The Supreme Court in the case of EPA 0v. West Virginia sought to curb the power of the administrative state, not just the EPA but the full range of agencies that regulate and effectively make law without legislation. We all know that President Trump sought to curb the role of the administrative state but with limited success. How can Congress go about taking back the power to make policy from the agencies? If agencies need to be cut or abolished, which would you name as part of that list? 7. Related to the previous question, the problem of the concentration of power in the U.S. economy has presented itself in many forms over the last years, including the role of Big Pharma at the Food and Drug Administration, Big Tech in Department of Homeland Security surveillance and Big Media at the Federal Communications Commission. It appears to many that these agencies have been captured by the largest players in industry. Do you have opinions on this topic and what Congress can do? 8. This question concerns American energy needs. Treasury Secretary Janet Yellen told the Senate that the U.S. needs to transition from oil and coal and instead use the “wind and sun” for energy needs. Right now, her preferred sources account for perhaps 10% of U.S. energy production, and even achieving that has required vast government subsidies. What is your view on choice in energy, including nuclear, and how U.S. energy policy should proceed? More Questions 9. Are there any conditions under which you would support tax increases of any form? 10. What is your plan to reduce the size and scope of government, if that is what you desire? What do you hope a new Republican-controlled Congress can achieve, not just in this term but the next too? 11. Many economists have suggested that the Fed is not doing the job it was founded to do. Under Article I, Section 10 of the U.S. Constitution, the authority to oversee money was clearly given to Congress, specifying that no state can “make any Thing but gold and silver Coin a Tender in Payment of Debt.” Should Congress curb the power of the Fed and take back its role in managing monetary affairs? 12. Ronald Reagan often emphasized that an enterprising and prosperous society requires limits on government to unleash the creativity of the human spirit. What to your mind is the role of government in a free and prosperous society and how will you use your seat in Congress to promote that? I could think of a lot more questions, but these are enough for now. If we could only get some answers. Regards, Jeffrey Tucker for The Daily Reckoning Editor’s note: You open our emails. You follow our research. And that’s why you’re getting a special courtesy reminder from the publisher… alerting you to a massive change in our business that could have [a direct and immediate impact on your financial future.]( What exactly is going on? And how could massive change affect your relationship with us? Our executive publisher put together this [one-minute clip]( explaining everything. So please, take a quick minute to watch this important message. [Click Here Now to Open It.]( Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Jeffrey Tucker] [Brian Maher]( is the Daily Reckoning's Managing Editor. Before signing on to Agora Financial, he was an independent researcher and writer who covered economics, politics and international affairs. His work has appeared in the Asia Times and other news outlets around the world. He holds a Master's degree in Defense & Strategic Studies. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your The Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [click here.]( Please read our [Privacy Statement](. 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