MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘U.S. economy’

Pawn Shop Inventories Are Exploding As The Failing U.S. Economy Hammers Those At The Bottom Of The Economic Food Chain

Posted by M. C. on March 27, 2024

When the government says something is going great, take it with a 5lb…4lb bag of salt.

by Michael

How much longer will the Biden administration and the mainstream media continue to deny that we are in the midst of a very painful economic downturn?  Debt levels have never been higher, delinquency rates are spiking, the commercial real estate market is crashing, the banking industry is mired in turmoil and large companies are conducting mass layoffs all over the nation.  Anyone that attempts to claim that the U.S. economy is in good shape is just being delusional.  Unfortunately, it is those that are at the bottom of the economic food chain that are being hurt the most.

If you want to know what is really going on with the economy, pawn shops are a great place to look.

When the economy is doing well, pawn shop inventories tend to go down because people aren’t pawning much stuff and there is lots of buying going on.

But when the economy is not doing well, pawn shop inventories tend to go up because people are pawning lots of stuff for fast cash and there aren’t as many buyers as there were during the good times.

So what are we seeing during the early stages of 2024?

One pawn shop owner that was recently interviewed by USA Today admitted that he has “a glut of inventory” right now…

Clay Baron has everything in his pawn shop from gold rings and pearl necklaces to vintage cowboy boots, silver belt buckles, stereos and ticking clocks.

The only thing he’s short on is space. “Right now we have a glut of inventory,” Baron said, “which tells me that our clientele doesn’t necessarily have money.”

Accumulating pawn shop inventory means fewer buyers than sellers – a sign that for the lowest-income Americans, times remain tough.

That same article pointed out that inventory levels have also grown rapidly at some of the largest pawn shop chains in the entire nation…

Two of the largest, publicly traded pawnshop corporations in the U.S. – which between them own roughly 1,700 pawnshops nationwide – are also reporting growing inventory and increased demand for short-term loans.

FirstCash Holdings Inc. operates nearly 1,200 pawnshops under the FirstCash and Cash America brands in 29 states and the District of Columbia. The company reported “record pawn receivables” in its most recent year-end earnings report and a 10% increase in inventory at its U.S. stores.

EZCORP Inc. also owns 530 pawnshops in the U.S. and reported an 8% increase in inventory at U.S. stores in the company’s latest earnings report. The “challenging macro-economic backdrop” continued to fuel demand for short-term cash loans, the company said.

If anyone comes to you and tries to convince you that the economy is doing well, just show them these numbers.

That will be the end of any debate.

See the rest here

Be seeing you

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George Kennan and the Wolfowitz Doctrine

Posted by M. C. on April 17, 2023

“Were the Soviet Union to sink tomorrow under the waters of the ocean, the American military-industrial complex would have to remain, substantially unchanged, until some other adversary could be invented. Anything else would be an unacceptable shock to the American economy.”

Was it the crux of the problem? The U.S. economy required a threat, real or imagined, to keep its economy humming. Simple as that? Perhaps it was intuitively understood by high Pentagon officials, acting as insiders and front-men for the military-industrial complex. 

Ergo, the well-deserved “peace dividend” was not an option.

http://www.patrickfoydossier.com/New-Entries/Entries/2023/4/george-kennan-and-the-wolfowitz-doctrine.html

Dear Friends + Interlocutors,

What are they trying to do, what do they want to accomplish, and why? With reference to the entrenched cabal that has been running Washington for decades, in particular since the end of the Cold War (1990), these basic questions have been racking my brain in recent weeks.

We’ve got to step back and look at the big picture, a larger context. Does the world’s current predicament basically derive from the so-called Wolfowitz Doctrine of 1992, prepared under the stewardship of Dick Cheney at the Pentagon? 

In the aftermath of the Soviet Union collapse (1989) and the U.S.-led successful ejection of Saddam Hussein from Kuwait (1991), Washington lost its bearings. Its collective mindset went fantee.

To quote from the Pentagon document, known as the Defense Planning Guidance: 

“…The U.S. must show the leadership necessary to establish and protect a new order that holds the promise of convincing potential competitors that they need not aspire to a greater role or pursue a more aggressive posture to protect their legitimate interests. 

“In non-defense areas, we must account sufficiently for the interests of the advanced industrial nations to discourage them from challenging our leadership or seeking to overturn the established political and economic order. We must maintain the mechanism for deterring potential competitors from even aspiring to a larger regional or global role.”

Granted, such grandiosity and hubris may have been understandable under the circumstances. However, in retrospect it was not just outlandish, but most unwise. Instead of cashing the “peace dividend” on behalf of the American people thanks to the end of the Cold War, Washington ginned up another, open-ended mission almost immediately. 

This unipolar-world crusade was advocated by private-agenda actors, neocons and neoliberals, who were themselves in the saddle in Washington carrying out policy.

A saner course of action would have been to call out of retirement the wise man of U.S. foreign policy, George Kennan, along with ace Pentagon analyst Chuck Spinney. The latter must be a Kennan enthusiast, because not too long ago he brought to my attention a mind-boggling 1987 statement, contained in Kennan’s book, At A Century’s Ending, Reflections 1982-1995

See the rest here

Be seeing you

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