Thirty-two years later, President Biden finds himself in the same awful bind as former President Bush. For as long as presidential polling data has been kept, an incumbent with economic stewardship numbers this bad has never been reelected. Worse for Biden, his absence of foreign policy leadership, two uncontrollable wars simultaneously fought with American military and financial assistance, and recklessness over the southern border have haunted his campaign’s messaging. [In contrast, President Bush’s approval ratings in March 1991 after the first Gulf War had reached 90%, the highest on record].
Overall, one-half (51%) give Biden a “D” or “F” for his handling of the economy. Only 29% give him good grades. 54% of Democrats give him good grades. Meanwhile, most Republicans (79%) and independents (53%) give him failing grades.
Fed officials concluded two days of meetings in Washington, and Chairman Powell announced that he would hold interest rates unchanged at 5.25 to 5.50%, the highest level since 2001. He said:
Today the FOMC decided to leave our policy interest rate unchanged and to continue to reduce our securities holdings. Our restrictive stance of monetary policy has been putting downward pressure on economic activity and inflation.
The last time the Fed raised rates was at its July 2023 meeting, after lifting them from near zero levels in April 2022 and increasing them steadily. The Fed funds rate affects short-term loans, such as credit card rates, new home equity loans, and lines of credit. Powell also admitted:
Inflation has eased notably over the past year but remains above our longer-run goal of 2%.
Experian says the average monthly payment for a new vehicle increased $25 year-over-year, reaching $726. Unable to make such large payments, many Americans are walking away from their loan obligations. “Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” said Wilbert van der Klaauw, economic research advisor at the New York Fed. “This signals increased financial stress, especially among younger and lower-income households.”
The White House boasts about the unemployment rate, which rose slightly to 3.9% in February. While the official numbers show this to be historically low, the truth is very different. According to a CNBC report based on data from the outplacement firm Challenger, Gray & Christmas, layoff announcements in February hit their highest level for the month since the global financial crisis in 2009. The total of 84,638 planned cuts showed an increase of 3% from January and 9% from the same month a year ago, with technology and finance companies at the forefront. Tech and finance workers are among the most highly compensated, and when their spending slows down, it can lead to more layoffs in the services sector, such as hospitality and tourism, as economic activity shrinks.
The latest Biden budget shows how unserious the president is about fixing these systemic issues plaguing the economy. The president calls for new federal spending, like for child tax credits, of up to $600 billion. Biden knows that even some Republicans will not hesitate to spend money on something as important as the welfare of children. Biden also has additional sweeteners, such as a national paid leave program for workers, expanded Pell Grants, and new tax credits for some home buyers – not all of which will receive bipartisan support.
To pay for the additional spending, Biden proposes aggressive increases in taxes for the wealthy and corporations. The corporate tax rate is currently at 21% thanks to President Trump’s 2017 tax cuts, set to expire in 2025. It is expected to go up to 28% in the Biden budget. But Biden knows that such a proposal will never pass, requiring 60 votes in the Senate and with projections that the Republicans might take over the chamber. Biden also proposes increasing the personal tax rate to 39.6% for families earning $400,000 or higher, again likely to face stiff opposition.
If history is any indication, many of Biden’s spending plans will go through, but the tax increases will not happen.
America is currently nursing a debt of $34 trillion. The federal government has to borrow at the same interest rate as everyone else, and today, the debt service line item is costing American taxpayers more than $1 trillion a year, larger than the Pentagon budget. Under the Biden budget, the debt will reach a whopping $54 trillion in ten years. No one knows the interest rate then, but Americans should get used to paying over $1.5 trillion a year in debt interest for the foreseeable future, an astounding amount.
In a recent TIPP Poll, 58% of Americans said they weren’t better off than they were four years ago, before the COVID-19 pandemic, while only 34% said they were. Furthermore, two-thirds live paycheck to paycheck under Biden’s administration, and 24% of Americans have $0 for financial emergencies. Of course, neither Professor Krugman nor TV talking heads can relate to the struggles of Americans.
America’s economy is in trouble, and President Biden is to blame. Voters have consistently ranked the economy as the #1 factor bothering them, just like Carville had predicted. And again, if history is an indication, Biden will likely lose his reelection bid, just like Bush 41.
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1. Israel’s Netanyahu Says He Told Blinken We Will Go Into Gaza’s Rafah Alone If Needed – Reuters
Prime Minister Benjamin Netanyahu said in a statement he had told visiting U.S. Secretary of State Antony Blinken that there was no way to defeat Hamas without going into Rafah.
Key aspects of the plan remain undeveloped, including how the administration will ensure the safety of at least 1,000 U.S. troops involved in the mission, calling into question how deeply the administration thought through the plan before announcing it, experts said.
4. Paul Teller: Biden’s Blunders Have Lit The Middle East On Fire – DCNF
Biden’s blunders in the Middle East are on full display as the House of Representatives holds hearings on Biden’s disastrous Afghanistan withdrawal and Iran’s rise, while the Israel Defense Force enters Rafah despite Biden’s public pleas to leave Hamas’ last remaining stronghold intact.
The United States, Israel’s main ally, which has vetoed previous ceasefire calls, put forward the resolution, which for the first time would have supported “the imperative of an immediate and sustained ceasefire” and condemned the October 7 attack by Hamas.
6. Biden Admin Warned Ukraine Against Attacking Russian Oil Refineries, Citing Possible Price Spike: Report – DCNF
The Biden administration has been irked by Ukraine’s strikes on Russian refineries because it threatens to upset the global oil economy and has warned Kyiv against conducting further attacks on these targets, The Financial Times reported.
Attackers dressed in camouflage uniforms entered the building on Friday, opened fire, and threw a grenade or incendiary bomb, according to a journalist for the RIA Novosti news agency.
ISIS said its fighters attacked “a large gathering” on Moscow’s outskirts and “retreated to their bases safely.”
Related: How Should The United States Handle The ISIS-K Threat In Afghanistan?
8. U.S. Warned Russia Of Planned Terror Attack A Month Ago: White House – AFP
The U.S. warned Russian authorities earlier in March about a terrorist attack possibly targeting “large gatherings” in Moscow, the White House said, hours after a mass shooting killed at least 60 people outside the Russian capital.
10. After 2 Yrs, Russia’s Special Military Operation Becomes A ‘State Of War’ – WION
After avoiding the term invasion and consistently referring to its actions in Ukraine as a “special military operation,” Russia has now admitted to being in a state of war. This comes after two years of its conflict with Ukraine.
The event could potentially reignite one of the most contentious issues over sovereignty between Beijing and Manila in recent years.
Tiexan Reef is the Chinese name for Sandy Cay, a group of cays – or low reefs – situated just 2 nautical miles from Philippines-occupied Thitu island.
12. Chinese Town Deports 200 Myanmar Migrant Workers Each Day – RFA
Hundreds of people line up daily in Muse, a town on the Myanmar side, to cross into China to find jobs or to return to jobs they already have in restaurants, clothing stores, factories, farms, and construction sites.
14. New York’s Actions Worry Global Markets, Undermining American Brand And Investor Confidence: Kevin O’Leary – Video – tippinsights
In an interview, businessman and investor Kevin O’Leary discussed concerns over recent events in New York, particularly the talk about the seizing of Trump’s assets.
15. UK Royal Kate Says She Is Undergoing Chemotherapy After Cancer Discovery – Reuters
Kate, Britain’s Princess of Wales, said she was undergoing preventative chemotherapy after tests taken following major abdominal surgery in January revealed cancer had been present.
The Nigerien government that came to power in July, in a nation historically viewed as an ally and partner in counter-terrorism efforts, announced plans to end military cooperation with the U.S., according to the Post, citing U.S. officials.
18. Sugary Soda, Fruit Juice Linked To Higher Risk For Type 2 Diabetes Among Boys – UPI Health
Boys who drink lots of sugary soda and fruit juice could be more likely to develop Type 2 diabetes later in life, a new study has found.
Nearly two-thirds of U.S. kids and teens consume at least one sugary drink – soda, lemonade, energy drinks and the like – every day, according to the American Heart Association.
Republished with permission from TIPP Insights
